Document ID: chunk:federal_register_of_legislation:F2020L01600:body:0:p2
Version: federal_register_of_legislation:F2020L01600
Segment Type: other
Provision Reference: 
Character Range: 2776–6047

Regulations means the Corporations Regulations 2001.

Part 2—Declaration

5 Exchange traded products
(1) Subject to section 6 of this instrument, Part 7.8A of the Act applies in relation to an exchange traded product as if the following provisions of the Part were modified or varied as follows:
Target market determinations for financial products
           (a) omit subsection 994B(8), substitute:
              "(8) A target market determination for a financial product must be such that it would be reasonable to conclude that either:
                  (a) if the product were to be issued, or sold in a regulated sale:
                     (i) to a retail client in accordance with the distribution conditions—it would be likely that the retail client is in the target market; and
                     (ii) to a retail client in the target market—it would likely be consistent with the likely objectives, financial situation and needs of the retail client; or
                  (b) if the product were to be sold within 12 months of the issue of the product:
                     (i) to a retail client in accordance with the distribution conditions—it would be likely that the retail client is in the target market; and
                     (ii) to a retail client in the target market—it would likely be consistent with the likely objectives, financial situation and needs of the retail client.";
Target market determinations to be reviewed
           (b) omit subsection 994C(2) (excluding the notes), substitute:
              "(2) A person contravenes this subsection if:
                  (a) all of the following apply:
                     (i) the person makes a target market determination for a financial product; and
                     (ii) the product is able to be traded on a licensed market at or after the end of the review period; and
                     (iii) the person did not complete a review of the determination during the review period; or
                  (b) all of the following apply:
                     (i) the person makes a target market determination for a financial product;
                     (ii) the product is able to be traded on a licensed market at any time during a review period for the determination;
                     (iii) the person knows, or ought reasonably to know, that:
                         (A) a review trigger for the determination has occurred; or
                         (B) an event or circumstance has occurred that would reasonably suggest that the determination is no longer appropriate;
                     (iv) from as soon as practicable, but no later than 10 business days, after the person first knew of the occurrence of the review trigger, event or circumstance, the person has not:
                         (A) reviewed the determination; and
                         (B) if the determination is no longer appropriate—made a new target market determination in accordance with section 994B.";
           (c) omit subsections 994C(3) to (7);
           (d) omit section 994D;
           Distribution of financial products
           (e) omit subsection 994E(3);
Record keeping and notification obligations—other regulated persons
           (f) omit paragraph 994F(2)(b), substitute: