Document ID: chunk:federal_register_of_legislation:C2025C00185:section:994d
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 994D
Character Range: 4174681–4175978

994D  Prohibition on engaging in retail product distribution conduct unless target market determination made
  If:
 (a) under section 994B, a person must make a target market determination for a financial product but the determination has not been made; and
 (b) the product is on offer for acquisition by issue, or for regulated sale, to retail clients;
a regulated person must not engage in retail product distribution conduct in relation to the product unless:
 (c) the regulated person made all inquiries (if any) that were reasonable in the circumstances and, after doing so, believed on reasonable grounds that:
 (i) the determination had been made; or
 (ii) this Part does not require a target market determination for the product; or
 (d) the retail product distribution conduct is excluded conduct.
Note 1: Failure to comply with 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 (c) and (d) (see subsection 13.3(3) of the Criminal Code).
Note 3: This subsection is also a civil penalty provision (see section 1317E). For relief from liability to a civil penalty relating to this subsection, see section 1317S.

Division 3—Distribution of financial products