Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.8A - DESIGN AND DISTRIBUTION REQUIREMENTS RELATING TO FINANCIAL PRODUCTS FOR RETAIL CLIENTS  

Division 3 - Distribution of financial products  

SECTION 994F   RECORD KEEPING AND NOTIFICATION OBLIGATIONS  

Record keeping by persons who make, or are required to make, target market determinations

994F(1)  
A person who makes, or who is required by this Part to make, a target market determination for a financial product must collect and keep complete and accurate records of:

(a)  the person ' s decisions in relation to the following:


(i) all target market determinations for the product;

(ii) review triggers for those target market determinations;

(iii) review periods for those target market determinations;

(iv) the requirements of subsections 994B(5) and (8) for those target market determinations; and

(b)  the reasons for those decisions.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .

Note 3: There are further requirements about records in sections 1101C , 1101E and 1101F .

Record keeping by other regulated persons

994F(2)  
Subsections (3) to (6) apply if:

(a)  a target market determination has been made for a financial product; and

(b)  the product is on offer for acquisition by issue, or for regulated sale, to retail clients; and

(c)  a regulated person engages in retail product distribution conduct in relation to the product.

994F(3)  
The regulated person must collect and keep complete and accurate records of the following information ( distribution information ) in relation to the product:

(a)  the number of complaints in relation to the product that the regulated person receives;

(b)  the steps the regulated person has taken in relation to the product as required by section 994E (reasonable steps to ensure consistency with the target market determination);

(c)  if the regulated person is specified in the determination as required to report information of a specified kind to the person who made the determination (see subparagraph 994B(5)(h)(i) ) - information of that kind that the regulated person acquires;

(d)  if the regulated person is not the person that made the determination - the dates on which the regulated person reported as required by subsection (4) , (5) or (6) and the substance of the reports.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .

Note 3: There are further requirements about records in sections 1101C , 1101E and 1101F .

Reporting complaint information to persons who make target market determinations

994F(4)  
If the regulated person engages in the retail product distribution conduct during a reporting period specified under paragraph 994B(5)(g) (which relates to complaints), the regulated person must, as soon as practicable, but in any case within 10 business days, after the end of the reporting period, report in writing to the person who made the target market determination:

(a)  whether the regulated person received complaints in relation to the product during the reporting period; and

(b)  if the regulated person received such complaints - the number of complaints the regulated person received.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .

Reporting other information to persons who make target market determinations

994F(5)  
If:

(a)  under the target market determination for the financial product, the regulated person is required to report information of a specified kind to the person that made the determination (see subparagraph 994B(5)(h)(i) ); and

(b)  

the regulated person engages in the retail product distribution conduct in relation to the product during a reporting period for that kind of information;

the regulated person must, as soon as practicable, but in any case within 10 business days, after the end of the reporting period for information of that kind, report in writing to the person that made the determination:

(c)  all the information of that kind that the regulated person acquired during the reporting period; or

(d)  if the regulated person did not acquire information of that kind during the reporting period - that fact.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .

994F(6)  
If the regulated person:

(a)  becomes aware of a significant dealing in the product; and

(b)  becomes aware that the dealing is not consistent with the target market determination;

the regulated person must, as soon as practicable, and in any case within 10 business days, report the dealing, in writing, to the person who made the determination.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .

Regulations

994F(7)  
The regulations may impose requirements in relation to records relating to compliance with this Part.

994F(8)  
A person contravenes this subsection if the person refuses or fails to comply with the requirements of regulations made for the purposes of subsection (7) .

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .


 

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