Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1012c:p3
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1012C (pt 3/3)
Character Range: 4270273–4272663

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 controller sold the product with the purpose of the person to whom it was sold 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 controller sold the product 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.
Note: See section 50AA for when a person controls a body.

The purpose test in subsection (8)
 (9) For the purposes of subsection (8):
 (a) a financial product is taken to be:
 (i) sold with the purpose referred to in subparagraph (8)(d)(i); or
 (ii) acquired with the purpose referred to in subparagraph (8)(d)(ii);
  if there are reasonable grounds for concluding that the product was sold or acquired with that purpose (whether or not there were or may have been other purposes for the sale or acquisition); and
 (b) without limiting paragraph (a), a financial product is taken to be:
 (i) sold with the purpose referred to in subparagraph (8)(d)(i); or
 (ii) acquired with the purpose referred to in subparagraph (8)(d)(ii);
  if the financial product, or any financial product of the same kind that was sold by the controller 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 initial sale and the subsequent sale or offer are not such as to give rise to reasonable grounds for concluding that the product was sold or acquired (in the initial sale) with that purpose.

This section has effect subject to other provisions
 (10) This section does not apply to a regulated person for a sale situation if:
 (a) one or more of sections 1012D, 1012DA, 1012E or 1014E apply to a regulated person for that sale situation; and
 (b) for each of those sections that so applies—the regulated person complies with the requirements (if any) in that section for that sale situation.

Civil liability
 (11) A person contravenes this subsection if the person contravenes this section.
Note: This subsection is a civil penalty provision (see section 1317E).