Part 7.8A was inserted into the Corporations Act 2001 (Cth) by the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 (Cth) to ensure that financial services providers take a customer-centric approach to making initial offerings of products to consumers and took effect from 5 October 2021.
Section 994AA defines “financial product” for the purposes of Part 7.8A. A margin extension is the deferment of a debt and therefore meets the definition of “credit” and is a “financial product”: ASIC v Bit Trade Pty Ltd (No 2) [2024] FCA 1422.
Section 994C requires that a target market determination must be reviewed where it is known that it may not be appropriate. The knowledge requirement is confined to actual knowledge, by requiring that “the person knows” relevant matters: ASIC v American Express Australia Ltd [2024] FCA 784.
Section 994E requires a person who makes a target market determination to take reasonable steps to ensure that the product is being distributed in accordance with it. “Reasonable steps” are steps that the relevant person “is reasonably able to take” and that are directed at a particular result, namely that they will or will be reasonable likely to result in distribution consistent with the determination: ASIC v Firstmac Ltd [2024] FCA 737.
In ASIC v Firstmac Ltd [2025] FCA 12, Downes J imposed a civil penalty of $8 million despite the relatively low financial harm caused because of Firstmac’s “objectively reckless” cross-selling of a managed investment scheme to a person outside its target market determination. 
Section 994J enables ASIC to issue a stop order in relation to certain conduct in relation to retail clients. This includes situations where the target market determination did not filter out customers at risk of financial hardship if they continued with the product and a class of vulnerable consumers: Coral Coast Distributors (CAIRNS) Pty Ltd v ASIC [2024] AATA 1585.

Grant Holley was a founding partner of Holley Nethercote Lawyers. He was a member of the Victorian Bar between 1986 and 1995 practising in commercial and equity matters. Since then, Grant has practised in financial services law acting for a wide range of clients in the financial services sector. He was a founding member and Associate of the Australian Compliance Institute, and a fellow of the Resolution Institute.

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