Document ID: chunk:federal_register_of_legislation:C2025C00185:section:992a:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 992A (pt 1/3)
Character Range: 4142340–4145004

992A  Prohibition on hawking of financial products

General prohibition
 (1) A person must not offer a financial product for issue or sale to another person (the consumer), or request or invite the consumer to ask or apply for a financial product or to purchase a financial product, if:
 (a) the consumer is a retail client; and
 (b) the offer, request or invitation is made in the course of, or because of, an unsolicited contact with the consumer.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Exceptions
 (2) Subsection (1) does not apply to:
 (a) an offer, request or invitation made in the course of the giving of advice to the consumer by a person who is required under Division 2 of Part 7.7A to act in the best interests of the consumer in relation to the advice; or
 (b) an offer of, or a request or invitation relating to, a financial product that is an add‑on insurance product in relation to a product or service (the principal product or service) that the consumer has indicated an intention to acquire from:
 (i) the person making the offer, request or invitation; or
 (ii) another person with whom that person has an arrangement that relates to the provision of add‑on insurance products in relation to products or services that include the principal product or service; or
 (c) an offer, request or invitation of a kind prescribed by the regulations.
Note 1: A defendant bears an evidential burden in relation to the matters in this subsection. See subsection 13.3(3) of the Criminal Code.
Note 2: Subdivision DA of Division 2 of Part 2 of the Australian Securities and Investments Commission Act 2001 deals with offers, requests or invitations relating to add‑on insurance products.
Note 3: Subsection (1) also does not apply in relation to an offer that is eligible to be made under Division 1A of Part 7.12 (Employee share schemes): see subsection 1100ZC(8).
 (3) However, paragraph (2)(b) does not apply if:
 (a) making the offer, request or invitation is covered by any of sections 12DU to 12DY of the Australian Securities and Investments Commission Act 2001; or
 (b) the offer, request or invitation is made after the end of the period of 6 weeks beginning on the end of the first day of:
 (i) the add‑on insurance deferral period (within the meaning of section 12DP of that Act) in relation to the consumer acquiring, or entering into a commitment to acquire, the principal product or service; or
 (ii) if there is no such add‑on insurance deferral period—the add‑on insurance pre‑deferral period (within the meaning of that section).

Meaning of unsolicited contact
 (4) Contact by a person with the