Document ID: chunk:federal_register_of_legislation:C2025C00185:section:994c:p3
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 994C (pt 3/3)
Character Range: 4172329–4174679

10 business days, after the regulated person first became aware that the steps had been taken, cease to engage in retail product distribution conduct in relation to the product unless:
 (a) the determination has been reviewed since a review trigger, event or circumstance mentioned in paragraph (5)(c) occurred and, if a new target market determination is required, it has been made; or
 (b) the regulated person:
 (i) made all inquiries (if any) that were reasonable in the circumstances; and
 (ii) after doing so, believed on reasonable grounds that the determination had been reviewed since a review trigger, event or circumstance mentioned in paragraph (5)(c) occurred and, if a new target market determination was required, it had been made; or
 (c) the retail product distribution conduct is excluded conduct.
Note 1: Contravention of 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 (a), (b) and (c) (see subsection 13.3(3) of the Criminal Code).
 (7) If a regulated person knows or ought reasonably to know that the person who made the target market determination for a financial product has taken steps referred to in subsection (5), the regulated person must, as soon as practicable, but no later than 10 business days, after the regulated person first became aware or should have become aware that the steps had been taken, cease to engage in retail product distribution conduct in relation to the product unless:
 (a) the determination has been reviewed since a review trigger, event or circumstance mentioned in paragraph (5)(c) occurred and, if a new target market determination is required, it has been made; or
 (b) the regulated person:
 (i) made all inquiries (if any) that were reasonable in the circumstances; and
 (ii) after doing so, believed on reasonable grounds that the determination had been reviewed since a review trigger, event or circumstance mentioned in paragraph (5)(c) occurred and, if a new target market determination was required, it had been made; or
 (c) the retail product distribution conduct is excluded conduct.
Note: This subsection is a civil penalty provision (see section 1317E). For relief from liability to a civil penalty relating to this subsection, see section 1317S.