(1) A person must make a target market determination for a financial product if:
(a) the product is covered by subregulation (4); and
(b) the product is, or will be, able to be traded on a licensed market; and
(c) the issuer issued the product with the purpose mentioned in subparagraph 1012C(6)(c)(i) of the Act; and
(d) it is reasonably likely that a regulated person will offer to sell the product to a person as a retail client within 12 months of the issue of the product; and
(e) the person is the issuer of the product.
Note: Subsection 1012C(7) of the Act affects whether the issuer is taken to have a particular purpose.
(2) The time before which the issuer is required to make the determination is the close of business on the day on which the issuer first issues the product with the purpose mentioned in paragraph (1)(c).
(3) This regulation does not apply to a financial product if the issuer issued, or offered to issue, the product to a person as a retail client at or before the time specified in subregulation (2).
(4) This subregulation covers the following financial products:
(a) an interest in a managed investment scheme;
(b) a share in a foreign company that has the economic features of a managed investment scheme and is an open-end investment company registered with the U.S. Securities and Exchange Commission under the Investment Company Act 1940 of the United States of America;
(c) a legal or equitable right or interest in a financial product covered by paragraph (a) or (b);
(d) an option to acquire, by way of issue, a financial product covered by paragraph (a), (b) or (c).