Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 6 - Liability of financial services licensees for representatives  

SECTION 917C   REPRESENTATIVES OF MULTIPLE LICENSEES  

917C(1)   [ Application]  

This section applies if the representative is the representative of more than one financial services licensee.

917C(2)   Financial service covered by only one authority.  

If:


(a) the representative is the representative of one of the licensees only in respect of a particular class of financial service; and


(b) the conduct relates to that class of service;

that licensee is responsible for the conduct, as between that licensee and the client, whether or not the conduct is within authority.

917C(3)   Financial service covered by multiple authorities: conduct within authority for one or more of them.  

If:


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


(b) the conduct relates 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 this paragraph; and


(c) the conduct is within authority in relation to:


(i) only one of those licensees (the authorising licensee ); or

(ii) two or more of those licensees (the authorising licensees );

then:


(d) if subparagraph (c)(i) applies - the authorising licensee is responsible for the conduct, as between that licensee and the client; or


(e) if subparagraph (c)(ii) applies - the authorising licensees are jointly and severally responsible for the conduct, as between themselves and the client.

917C(4)   All other cases.  

In any other case, all of the licensees are jointly and severally responsible for the conduct, as between themselves and the client, whether or not the representative ' s conduct is within authority in relation to any of them.


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