(1) This section applies:
- (a)
- in relation to a dealer (other than an
exempt dealer) in relation to a transaction of sale or purchase of securities;
or
- (b)
- in relation to an exempt dealer, in relation to a transaction of sale or
purchase of securities that is entered into in the course of a securities
business that the exempt dealer carries on in the capacity of personal
representative of a dead dealer.
(2) A dealer must, in respect of a transaction of sale or purchase of
securities, immediately give a contract note that complies with
subsection (3) to:
- (a)
- where the transaction took place in the ordinary
course of business on a stock market and the dealer entered into the
transaction otherwise than as principalthe person for whom the dealer
entered into the transaction; and
- (b)
- where the transaction did not take place in the ordinary course of
business on a stock market and the dealer entered into the transaction
otherwise than as principalthe person for whom the dealer entered into
the transaction and the person with whom the dealer entered into the
transaction; and
- (c)
- where the transaction did not take place in the ordinary course of
business on a stock market and the dealer entered into the transaction as
principalthe person with whom the dealer entered into the transaction.
(3) A contract note given by a dealer under subsection (2) must specify:
- (a)
- the name or style under which the dealer carries on business as a dealer
and the address of the principal place at which the dealer so carries on
business; and
- (b)
- each securities exchange (if any) of which the dealer is a member; and
- (c)
- if the dealer is dealing as principal with a person who is not the holder
of a dealers licencethat the dealer is so dealing; and
- (d)
- the name of the person to whom the dealer gives the contract note; and
- (e)
- the day on which the transaction took place and, if the transaction did
not take place in the ordinary course of business on a stock market, a
statement to that effect; and
- (f)
- the number, or amount and description, of the securities that are the
subject of the contract; and
- (g)
- the price per unit of the securities; and
- (h)
- the amount of the consideration; and
- (j)
- the amount of commission charged; and
- (k)
- the amounts of all stamp duties or other duties and taxes payable in
connection with the contract; and
- (m)
- if an amount is to be added to, or deducted from, the settlement amount in
respect of the right to a benefit bought or sold together with the
securitiesthe first-mentioned amount and the nature of the benefit.
(4) A dealer must not include in a contract note given under
subsection (2), as the name of the person with or for whom the dealer has
entered into the transaction, a name that the dealer knows, or could
reasonably be expected to know, is not the name by which that person is
ordinarily known.
(5) A reference in this section to a dealer dealing, or entering into a
transaction, as principal includes a reference to a person:
- (a)
- dealing or
entering into a transaction on behalf of an associate of the dealer; or
- (b)
- dealing in securities on behalf of a body corporate in which the dealer
has a controlling interest; or
- (c)
- where the dealer carries on business as a dealer in
partnershipdealing in securities on behalf of a body corporate in which
the dealer's interest and the interests of the dealer's partners together
constitute a controlling interest.
(6) For the purposes of this section:
- (a)
- a dealer who is a member of a
securities exchange is not taken to have entered into a transaction as
principal merely because the transaction was entered into with another dealer
who is a member of a securities exchange; and
- (b)
- a transaction takes place in the ordinary course of business on a stock
market if it takes place in prescribed circumstances or is a transaction that
is a prescribed transaction for the purposes of this section.
(7) Despite Division 2 of Part 1.2, a person is not an associate of
another person for the purposes of this section merely because the
first-mentioned person is:
- (a)
- a partner of the other person otherwise than
because the first-mentioned person carries on a business of dealing in
securities in partnership with the other person; or
- (b)
- a director of a body corporate of which the other person is also a
director, whether or not the body corporate carries on a business of dealing
in securities.