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 917D   917D   EXCEPTION IF LACK OF AUTHORITY IS DISCLOSED TO CLIENT  


A financial services licensee is not responsible under section 917B or 917C for the conduct of their representative if:


(a) the conduct is not within authority in relation to the licensee (or in relation to any of the licensees, if there were more than one); and


(b) the representative disclosed that fact to the client before the client relied on the conduct; and


(c) the clarity and the prominence of the disclosure was such as a person would reasonably require for the purpose of deciding whether to acquire the relevant financial service.

Note: A person must not hold out that conduct, or proposed conduct, of the person is within authority in relation to a particular financial services licensee, unless that is the case. See section 911C .


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