THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.4 - CONDUCT OF SECURITIES BUSINESS

Division 1 - Regulation of certain activities

SECTION 843   DEALINGS AND TRANSACTIONS ON A DEALER'S OWN ACCOUNT  

843(1)  (Omitted by No 110 of 1990, Sch 1 (effective 18 December 1990).)

843(2)  [Dealer to notify non-dealer that acting as principal]  

Subject to subsection (5), a dealer shall not, on the dealer's own account, deal in securities with a non-dealer without first informing the non-dealer that the dealer is acting in the transaction as principal and not as agent.

843(3)  [Contract note to state dealer acting as principal]  

A dealer who, on the dealer's own account, enters into a transaction of sale or purchase of securities with a non-dealer shall state in the contract note that the dealer is acting in the transaction as principal and not as agent.

843(4)  [Dealer transacting with non-dealer not to charge fee]  

Subject to subsections (5) and (6), a dealer who, on the dealer's own account (otherwise than merely because the dealer enters into a transaction on behalf of an associate of the dealer), enters into a transaction of sale or purchase of securities with a non-dealer shall not charge the non-dealer brokerage, commission or any other fee in respect of the transaction.

843(5)  [Exception with odd lot]  

Subsections (2) and (4) do not apply in relation to a transaction of sale or purchase of an odd lot of securities that is entered into by a dealer who is a member of a securities exchange and specialises in transactions relating to odd lots of securities.

843(6)  (Repealed by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).)

843(7)  [Rescission of contract]  

Where a dealer contravenes subsection (2), (3) or (4) in relation to a contract, then:

(a)  if the contract is for the sale of securities by the dealer to a person - the person may, if the person has not disposed of them; or

(b)  if the contract is for the purchase of securities by the dealer from a person - the person may;

rescind the contract by written notice given to the dealer within 14 days after the person receives the contract note.

843(8)  [Other rights]  

Nothing in subsection (7) affects any right that a person has apart from that subsection.