Commonwealth Consolidated Acts

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CORPORATIONS ACT 2001 - SECT 917A

Application of Division

             (1)  This Division applies to any conduct of a representative of a financial services licensee:

                     (a)  that relates to the provision of a financial service; and

                     (b)  on which a third person (the client ) could reasonably be expected to rely; and

                     (c)  on which the client in fact relied in good faith.

             (2)  In this Division, a reference to a representative's conduct being within authority in relation to a particular financial services licensee is, subject to subsection (3), a reference to:

                     (a)  if the representative is an employee of the licensee or of a related body corporate of the licensee--conduct being within the scope of the employee's employment; or

                     (b)  if the representative is a director of the licensee or of a related body corporate of the licensee--conduct being within the scope of the director's duties as director; or

                     (c)  in any other case--conduct being within the scope of the authority given by the licensee.

             (3)  If:

                     (a)  a person is the representative of more than one financial services licensee in respect of a particular class of financial service; and

                     (b)  the person engages in conduct relating to that class of service; and

                   (ba)  the conduct relates to a particular kind of financial product prescribed by regulations made for the purposes of paragraph 917C(3)(ba); and

                     (c)  any one or more of the licensees issues or transfers a financial product of that kind as a result of the conduct;

then, for the purposes of this Division:

                     (d)  the person is taken, in respect of the conduct, to have acted within authority in relation to the licensee or to each licensee who issued or transferred a financial product of that kind as a result of the conduct; and

                     (e)  the person is, in respect of the conduct, taken not to have acted within authority in relation to any licensee who did not issue or transfer a financial product of that kind as a result of the conduct.



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