Document ID: chunk:federal_register_of_legislation:C2025C00182:section:12dk:p2
Version: federal_register_of_legislation:C2025C00182
Segment Type: section
Provision Reference: s 12DK (pt 2/3)
Character Range: 138384–140872

benefit of any person other than the targeted person who participates in the scheme; and
 (b) the inducement for making the payment is the holding out to the targeted person the prospect of receiving payments from other persons who may participate in the scheme.
Note: Failure to comply with this subsection is an offence (see section 12GB).
 (3A) An offence under subsection 12GB(1) relating to subsection (1), (2) or (3) of this section is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
 (4) For the purposes of subsection (1), (2) or (3):
 (a) a prospect of a kind mentioned in that subsection is taken to be held out to a person whether it is held out so as to confer on him or her a legally enforceable right or not; and
 (b) in determining whether an inducement or attempt to induce is made by holding out a prospect of a kind mentioned in that subsection, it is sufficient if a prospect of that kind constitutes or would constitute a substantial part of the inducement; and
 (c) any reference to the making of a payment to or for the benefit of a person includes a reference to the making of a payment partly to or for the benefit of that person and partly to or for the benefit of one or more other persons.
 (5) For the purposes of this section, a scheme is a trading scheme to which this section applies if the scheme includes the following elements:
 (a) financial products are to be provided by the person promoting the scheme (the promoter) or, in the case of a scheme promoted by 2 or more persons acting in concert (the promoters), are to be provided by one or more of those persons; and
 (b) the financial products so provided are to be supplied to or for other persons under transactions arranged or effected by persons who participate in the scheme (each of whom is in this section referred to as a participant), being persons not all of whom are promoters.
 (6) For the purposes of subsection (5):
 (a) a scheme is taken to include the element referred to in paragraph (5)(b) whether a participant who is not a promoter acts in relation to a transaction referred to in that paragraph in the capacity of an employee or agent of the promoter or of one of the promoters or in any other capacity; and
 (b) a scheme includes any arrangements made in connection with the carrying on of a business, whether those arrangements are made or recorded wholly or partly in writing or not; and
 (c) a reference to the provision of a