Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_1012c:p2
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 1012C (pt 2/3)
Character Range: 516092–518739

on a licensed market.

Note: See section 50AA for when a person controls a body.

Sale amounting to indirect issue

 (6) This subsection covers the circumstances in which:
 (a) the offer is made within 12 months after the issue of the financial product; and
 (b) the product was issued without a Product Disclosure Statement for the product being prepared; and
 (c) either:
 (i) the issuer issued the product with the purpose of the person to whom it was issued selling or transferring the product, or granting, issuing or transferring interests in, or options or warrants over, the product; or
 (ii) the person to whom the product was issued acquired it with the purpose of selling or transferring the product, or granting, issuing or transferring interests in, or options or warrants over, the product.

The purpose test in subsection (6)

 (7) For the purposes of subsection (6):
 (a) a financial product is taken to be:
 (i) issued with the purpose referred to in subparagraph (6)(c)(i); or
 (ii) acquired with the purpose referred to in subparagraph (6)(c)(ii);
  if there are reasonable grounds for concluding that the product was issued or acquired with that purpose (whether or not there were or may have been other purposes for the issue or acquisition); and
 (b) without limiting paragraph (a), a financial product is taken to be:
 (i) issued with the purpose referred to in subparagraph (6)(c)(i); or
 (ii) acquired with the purpose referred to in subparagraph (6)(c)(ii);
  if the financial product, or any financial product of the same kind that was issued at the same time, is subsequently sold, or offered for sale, within 12 months after issue, unless it is proved that the circumstances of the issue and the subsequent sale or offer are not such as to give rise to reasonable grounds for concluding that the product was issued or acquired with that purpose.

Sale amounting to indirect off‑market sale by controller

 (8) This subsection covers the circumstances in which:
 (a) the offer is made within 12 months after the sale of the financial product by a person (the controller) who controlled the issuer of the product at the time of the sale; and
 (b) either:
 (i) at the time of the sale by the controller, the product was not able to be traded on any licensed market; or
 (ii) although the product was able to be traded on a licensed market at that time, the sale by the controller did not occur in the ordinary course of trading on a licensed market; and
 (c) a Product Disclosure Statement was not prepared by, or on behalf of, the controller before the sale of the product by the controller; and
 (d) either:
 (i) the