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CORPORATIONS ACT 2001 - SECT 1020A

Offers etc. relating to certain managed investment schemes not to be made in certain circumstances

Obligation

             (1)  A person must not engage in conduct of a kind referred to in subsection (2) in relation to a financial product described in paragraph 764A(1)(ba) (which relates to certain managed investment schemes that are not registered schemes) if the managed investment scheme concerned needs to be, or will need to be, registered and has not been registered. This is so even if it is proposed to register the scheme.

             (2)  Subject to subsection (3), the kinds of conduct that must not be engaged in in relation to such a managed investment product are as follows:

                     (a)  making a recommendation, as described in subsection 1012A(3), that is received in this jurisdiction;

                     (b)  making an offer, as described in subsection 1012B(3) or 1012C(3), that is received in this jurisdiction;

                     (c)  accepting an offer, made as described in subsection 1012B(3) or (4), that was received in this jurisdiction.

Exceptions

             (3)  Subsection (2) does not apply to a recommendation or offer made in a situation to which a subsection of section 1012D, other than subsection 1012D(1), applies.

Note:          In criminal proceedings, a defendant bears an evidential burden in relation to the matters in this subsection. See subsection 13.3(3) of the Criminal Code.

Fault-based offence

             (4)  A person commits an offence if the person contravenes subsection (1).

Civil liability

             (5)  A person contravenes this subsection if the person contravenes subsection (1).

Note:          This subsection is a civil penalty provision (see section 1317E).



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