(1) This Division sets out rules for determining the liability of a responsible person under:
(a) the relevant old legislation; or
(b) the amended Corporations Act;
in relation to conduct engaged in, during the transition period, by a representative in respect of more than 1 principal.
Note: The Corporations Act 2001 has been amended by the Financial Services Reform (Consequential Provisions) Act 2001 . The Consequential Provisions Act includes a two-year transition period during which certain conduct, described in Part 10.2 of the Corporations Act, will be regulated under either the legal regime in force before the amendments or under the new version of the Corporations Act.
If a person continues a business during the transition period, and is to be regulated under the legal regime in force before the amendments, the person will be subject to the relevant law that regulated (or would have regulated) their conduct before the amendments. This is referred to in section 1430 of the Corporations Act as the 'relevant old legislation'.
Therefore, after the commencement of the amendments, a person may be a principal under either or both legal regime. This Division deals with the liability of either kind of principal in relation to a client and the conduct of a representative of that principal.
(2) Nothing in this Division is intended to apply a provision of the relevant old legislation to a person that is not a regulated principal.