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CORPORATIONS ACT 2001 - SECT 1241N

Prohibition on hawking of securities in a CCIV

  (1)   Treat subsection   992A(2) as also providing that subsection   992A(1) does not apply to the offering of securities in a CCIV, hawking of which is prohibited by section   992AA (as extended by this section).

  (2)   Subsection   992AA(1) also applies as if the reference in that subsection to interests in managed investment schemes included a reference to securities in a CCIV.

Note:   Failure to comply with subsection   992AA(1) is an offence (see subsection   1311(1)).

  (3)   Subsection   992AA(1), as it applies because of subsection   (2) of this section, does not apply to an offer of securities in a CCIV if:

  (a)   the offer is not to a retail client; or

  (b)   the CCIV is a listed company and the offer is an offer of securities in the CCIV made by telephone by a financial services licensee; or

  (c)   the offer is made to a client by a financial services licensee through whom the client has acquired or disposed of a security in a CCIV in the previous 12 months.

Note:   A defendant bears an evidential burden in relation to the matters in this subsection   (see subsection   13.3(3) of the Criminal Code ).

  (4)   For the purposes of subsection   992AA(1), as it applies because of subsection   (2) of this section:

  (a)   a reference to offering securities in a CCIV for issue includes a reference to inviting an application for the issue of securities in the CCIV; and

  (b)   a reference to offering securities in a CCIV for sale includes a reference to inviting an offer to purchase securities in the CCIV.

  (5)   Subsection   736(1) (about prohibiting the hawking of securities) does not apply to securities in a CCIV.

Note:   A defendant bears an evidential burden in relation to the matter in this subsection   (see subsection   13.3(3) of the Criminal Code ).



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