CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.10 - MARKET MISCONDUCT AND OTHER PROHIBITED CONDUCT RELATING TO FINANCIAL PRODUCTS AND FINANCIAL SERVICES  

Division 2 - The prohibited conduct (other than insider trading prohibitions)  

SECTION 1041E   FALSE OR MISLEADING STATEMENTS  

1041E(1)   [ Requirements]  

A person must not (whether in this jurisdiction or elsewhere) make a statement, or disseminate information, if:


(a) the statement or information is false in a material particular or is materially misleading; and


(b) the statement or information is likely:


(i) to induce persons in this jurisdiction to apply for financial products; or

(ii) to induce persons in this jurisdiction to dispose of or acquire financial products; or

(iii) to have the effect of increasing, reducing, maintaining or stabilising the price for trading in financial products on a financial market operated in this jurisdiction; and


(c) when the person makes the statement, or disseminates the information:


(i) the person does not care whether the statement or information is true or false; or

(ii) the person knows, or ought reasonably to have known, that the statement or information is false in a material particular or is materially misleading.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ). For defences to a prosecution based on this subsection, see Division 4 .

Note 2: Failure to comply with this subsection may also lead to civil liability under section 1041I . For relief from liability under that section, see Division 4 .

1041E(2)   [ Physical element; fault element]  

For the purposes of the application of the Criminal Code in relation to an offence based on subsection (1), paragraph (1)(a) is a physical element, the fault element for which is as specified in paragraph (1)(c).

1041E(3)   [ Strict liability]  

For the purposes of an offence based on subsection (1), strict liability applies to subparagraphs (1)(b)(i), (ii) and (iii).

Note: For strict liability , see section 6.1 of the Criminal Code .


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.