Document ID: chunk:federal_register_of_legislation:C2025C00185:section:994b:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 994B (pt 1/3)
Character Range: 4160164–4162819

994B  Target market determinations for financial products

Requirement to make a target market determination
 (1) Subject to subsection (3), a person must make a target market determination for a financial product if:
 (a) under Part 6D.2, the person is required to prepare a disclosure document for the product; or
 (b) under Part 7.9, the person is required to prepare a Product Disclosure Statement for the product; or
 (ba) the product is not a financial product (as defined in Division 3 of Part 7.1) and:
 (i) the person issues the product to another person as a retail client; or
 (ii) the person sells the product under a regulated sale; or
 (c) regulations made for the purpose of this paragraph require the person to make a target market determination for the product.
 (2) A person required by subsection (1) to make a target market determination for a financial product must do so before:
 (a) if paragraph (1)(a), (b) or (ba) applies—any person engages in retail product distribution conduct in relation to the product; or
 (b) if paragraph (1)(c) applies:
 (i) the time or event specified in regulations made for the purposes of that paragraph; or
 (ii) if there is no time or event so specified—any person engages in retail product distribution conduct in relation to the product.
Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1)).
Note 2: 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.
 (3) Subsections (1) and (2) do not apply to:
 (a) a MySuper product; or
 (b) a margin lending facility; or
 (d) a fully paid ordinary share in a company or a foreign company (except a fully paid ordinary share covered by subsection (4)); or
 (e) a financial product issued, or offered for regulated sale, by an exempt body corporate of a State or Territory or by an exempt public authority; or
 (f) a financial product of a kind prescribed by regulations made for the purposes of this paragraph.
Note:  Division 1A of Part 7.12 (Employee share schemes) contains a separate regime for the making of offers in connection with employee share schemes. Subsections (1) and (2) of this section do not apply in relation to securities that are issued, sold or transferred under an offer that is eligible to be made under that Division: see subsection 1100ZC(6).
 (4) Paragraph (3)(d) does not apply to a fully paid ordinary share in a company or a foreign company if:
 (a) on the issue of the share, the company intended that the share be converted into a preference share within 12 months after the date of