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CORPORATIONS ACT 2001 - SECT 994D

Prohibition on engaging in retail product distribution conduct unless target market determination made

                   If:

                     (a)  under section 994B, a person must make a target market determination for a financial product but the determination has not been made; and

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

a regulated person must not engage in retail product distribution conduct in relation to the product unless:

                     (c)  the regulated person made all inquiries (if any) that were reasonable in the circumstances and, after doing so, believed on reasonable grounds that:

                              (i)  the determination had been made; or

                             (ii)  this Part does not require a target market determination for the product; or

                     (d)  the retail product distribution conduct is excluded conduct.

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

Note 2:       In a prosecution for an offence, the defendant bears an evidential burden in relation to the matters in paragraphs (c) and (d) (see subsection 13.3(3) of the Criminal Code ).

Note 3:       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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