Commonwealth Consolidated Acts

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Company making CSF offer or CSF intermediary etc. must not financially assist retail client to acquire securities

             (1)  This section applies to the following persons in relation to a CSF offer made by a company or that a company intends to make:

                     (a)  the company;

                     (b)  a related party of the company;

                     (c)  a CSF intermediary that is or intends to be the responsible intermediary in relation to the CSF offer;

                     (d)  an associate of such a CSF intermediary.

             (2)  A person to whom this section applies must not:

                     (a)  financially assist a person who is a retail client in relation to the CSF offer to acquire securities pursuant to the offer; or

                     (b)  arrange financial assistance for such a person to acquire securities pursuant to the CSF offer.

Note 1:       This subsection applies to financial assistance provided by the company even if that assistance does not contravene section 260A.

Note 2:       Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (3)  Without limiting subsection (2), the prohibition on financial assistance:

                     (a)  applies whether the financial assistance is provided or arranged before or after the acquisition of securities pursuant to the CSF offer; and

                     (b)  extends to the provision of financial assistance in the form of a dividend.

             (4)  In this section, financially assist and financial assistance have the same meanings as they have in section 260A.

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