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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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