THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.4 - CONDUCT OF SECURITIES BUSINESS

Division 1 - Regulation of certain activities

SECTION 844   DEALER TO GIVE PRIORITY TO CLIENTS' ORDERS  

844(1)  (Omitted by No 110 of 1990, Sch 1 (effective 18 December 1990).)

844(2)  [Dealer to give priority to client]  

A dealer shall not, except as permitted by subsection (3), enter into, as principal or on behalf of an associate of the dealer, a transaction of purchase or sale of securities that are permitted to be traded on a stock market of a securities exchange if a client of the dealer who is not an associate of the dealer has instructed the dealer to buy or sell, as the case may be, securities of the same class and the dealer has not complied with the instruction.

844(3)  [Exception]  

Subsection (2) does not apply in relation to the entering into of a transaction by a dealer as principal or on behalf of an associate of the dealer if:

(a)  the instructions from the client concerned required the purchase or sale of securities on behalf of the client to be effected only on specified conditions relating to the price at which the securities were to be bought or sold and the dealer has been unable to buy or sell the securities because of those conditions; or

(b)  the transaction is entered into in prescribed circumstances.