Section 994D — Corporations Act 2001 (Cth)

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.

Related sections

• s 994AA — Meaning of financial product—Part 7.8A
• s 994B — Target market determinations for financial products
• s 994C — Target market determinations to be reviewed
• s 994E — Reasonable steps to ensure consistency with target market determinations
• s 994F — Record keeping and notification obligations
• s 994G — Notice to ASIC

Research how courts apply s 994D

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.