Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH Note: Division 7 is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
CCH Note: Section 991B is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
This section applies if: (a) a person (the client ) has instructed a financial services licensee to buy or sell financial products of a particular class that are able to be traded on a licensed market; and (b) the licensee has not complied with the instruction; and (c) the client is not an associate of the licensee; and (d) regulations made for the purposes of this paragraph do not exclude those financial products from this section.
991B(2)
The financial services licensee must not, except as permitted by subsection (3): (a) enter into a transaction of purchase or sale of financial products of that class either on their own behalf or on behalf of an associate of the licensee; or (b) instruct another person to enter into a transaction of purchase or sale of financial products of that class on behalf of the licensee or an associate of the licensee.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
991B(3)
Subsection (2) does not apply in relation to the entering into of a transaction, or the giving of an instruction, by the licensee if: (a) the client ' s instructions required the purchase or sale to be effected only on specified conditions relating to price and the licensee has been unable to comply with the instructions because of those conditions; or (b) the transaction, or the giving of the instruction, is permitted by regulations made for the purposes of this paragraph.
Note: A defendant bears an evidential burden in relation to the matters in this subsection. See subsection 13.3(3) of the Criminal Code .
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