CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 11 - Agreements with unlicensed persons relating to the provision of financial services  

Subdivision B - Effect on agreements  

SECTION 925A   CLIENT MAY GIVE NOTICE OF RESCISSION  

925A(1)   [ Written notice of rescission]  

Subject to this section, the client may, whether before or after completion of the agreement, give to the non-licensee a written notice stating that the client wishes to rescind the agreement.

925A(2)   [ Reasonable period]  

The client may only give a notice under this section within a reasonable period after becoming aware of the facts entitling the client to give the notice.

925A(3)   [ Conduct disentitling right to rescission]  

The client is not entitled to give a notice under this section if the client engages in conduct by engaging in which the client would, if the entitlement so to give a notice were a right to rescind the agreement for misrepresentation by the non-licensee, be taken to have affirmed the agreement.

925A(4)   [ Where client informed non-licensee not licensed]  

The client is not entitled to give a notice under this section if, within a reasonable period before the agreement was entered into, the non-licensee informed the client (whether or not in writing) that the non-licensee did not hold an Australian financial services licence.

925A(5)   [ Suspension of Australian financial services licence]  

If, at a time when an Australian financial services licence held by the non-licensee was suspended, the non-licensee informed the client that the licence was suspended, the non-licensee is to be taken for the purposes of subsection (4) to have informed the client at that time that the non-licensee did not hold the licence.

925A(6)   [ No limitation]  

None of subsections (2), (3) and (4) limits the generality of either of the others.

925A(7)   [ Scope]  

Subject to this section, the client may give a notice under this section whether or not:

(a) the notice will result under section 925B in rescission of the agreement; or

(b) the Court will, if the notice so results, be empowered to make a particular order, or any order at all, under section 925D .