Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 2 - Best interests obligations  

Subdivision F - Responsibilities of licensees under this Division  

SECTION 961M   CIVIL ACTION FOR LOSS OR DAMAGE  

961M(1)  
This section applies if the client suffers loss or damage because of a contravention of a provision of this Division.

961M(2)  
A Court may order that one or more of the following persons compensate the client for the amount of the loss or damage:


(a) if the person who contravenes the provision is a financial services licensee - that licensee;


(b) if the person who contravenes the provision is a representative of a financial services licensee, or 2 or more financial services licensees - the, or a, responsible licensee in relation to the contravention.

961M(3)  
The Court may make the order under this section:


(a) on its own initiative, during proceedings before the Court; or


(b) on the application of ASIC; or


(c) on the application of the client.

961M(4)  
In determining the damage suffered by the client, the Court may include profits resulting from the contravention that are made by:


(a) if the person who contravenes the provision is a financial services licensee - the licensee; or


(b) if the person who contravenes the provision is a representative of a financial services licensee, or 2 or more financial services licensees:


(i) the representative; and

(ii) where the Court ' s order under subsection (2) relates to a financial services licensee that is the, or a, responsible licensee in relation to the contravention - the licensee.

961M(5)  
An order under this section may be made whether or not the licensee against whom the order is made (or anyone else) has been convicted of an offence, or been the subject of a civil penalty order, in respect of the matter.

961M(6)  
An action to recover the amount of the loss or damage may be begun at any time within 6 years after the contravention.

961M(7)  
An order under this section may be enforced as if it were a judgement of the Court.

961M(8)  
This section does not affect any liability that a person has under any other law.


 

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