THE CORPORATIONS LAW

CHAPTER 8 - THE FUTURES INDUSTRY

PART 8.7 - OFFENCES

Division 2 - General

SECTION 1267   DEALINGS BY EMPLOYEES OF FUTURES BROKERS AND FUTURES ADVISERS  

1267(1)  [Joint dealings]  

A person who is a futures broker or a futures adviser and an employee of that person shall not, as principals, jointly deal in, or agree to deal in, futures contracts.

1267(2)  [Joint dealings by broker and employee]  

A person who is a partner in a partnership that carries on a business of dealing in futures contracts and an employee of the partnership shall not, as principals, jointly deal in, or agree to deal in, futures contracts.

1267(3)  [Joint dealings by adviser and employee]  

A person who is a partner in a partnership that carries on a futures advice business and an employee of the partnership shall not, as principals, jointly deal in, or agree to deal in, futures contracts.

1267(4)  [Giving credit to employee of broker of adviser]  

A person who is a futures broker or a futures adviser shall not give credit to an employee of that person or to a person who, to the knowledge of the first-mentioned person, is associated with such an employee if:

(a)  the credit is given for the purpose of enabling or assisting the person to whom the credit is given to deal in futures contracts; or

(b)  the person giving the credit knows or has reason to believe that the credit will be used for the purpose of dealing in futures contracts.

1267(5)  [Giving credit to employee of partnership of brokers]  

A person who is a partner in a partnership that carries on a business of dealing in futures contracts shall not give credit to an employee of the partnership or to a person who, to the knowledge of the first-mentioned person, is associated with such an employee if:

(a)  the credit is given for the purpose of enabling or assisting the person to whom the credit is given to deal in futures contracts; or

(b)  the person giving the credit knows or has reason to believe that the credit will be used for the purpose of dealing in futures contracts.

1267(6)  [Giving credit to employee of partnership of advisers]  

A person who is a partner in a partnership that carries on a futures advice business shall not give credit to an employee of the partnership or to a person who, to the knowledge of the first-mentioned person, is associated with such an employee if:

(a)  the credit is given for the purpose of enabling or assisting the person to whom the credit is given to deal in futures contracts; or

(b)  the person giving the credit knows or has reason to believe that the credit will be used for the purpose of dealing in futures contracts.

1267(7)  [Dealings by employee of member organisation]  

A person who is an employee of a member organisation of a futures exchange in connection with a business of dealing in futures contracts carried on by the member organisation shall not, as principal, deal, or agree to deal, in futures contracts unless the member organisation acts as the agent of the person in respect of the transaction.

1267(8)  [``Employee of a person who is a futures broker'']  

A reference in subsection (1) or (4) to an employee of a person who is a futures broker or a futures adviser includes, in the case of a body corporate that is a futures broker or a futures adviser, a reference to an officer of the body corporate.

1267(9)  [``Employee of a member organisation of a futures exchange'']  

The reference in subsection (7) to an employee of a member organisation of a futures exchange includes:

(a)  in the case of a member organisation that is a body corporate; and

(b)  in the case of a member organisation that is a partnership in which a partner is a body corporate;

a reference to an officer of the body corporate.

1267(10)  [Interpretation]  

A reference in this section to an employee of a futures broker, a futures adviser, a partnership or a member organisation of a futures exchange includes a reference to a person who, pursuant to a subsisting agreement, performs services for the futures broker, futures adviser, partnership or member organisation in connection with dealings in futures contracts by the futures broker, futures adviser, partnership or member organisation.