THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.4 - CONDUCT OF SECURITIES BUSINESS

Division 1 - Regulation of certain activities

SECTION 845   DEALINGS BY EMPLOYEES OF HOLDERS OF LICENCES  

845(1)  [Dealers or investment advisers and employees]  

A person who is a dealer or an investment adviser and an employee of that person shall not, as principals, jointly buy or subscribe for, or agree to buy or subscribe for, securities.

845(2)  [Partners of securities or investment business and employees]  

A person who is a partner in a partnership that carries on a securities business or an investment advice business and an employee of the partnership shall not, as principals, jointly buy or subscribe for, or agree to buy or subscribe for, securities.

845(3)  [Credit to employees for buying securities]  

A person who is a dealer or investment adviser, or who is a partner in a partnership that carries on a securities business or an investment advice business, shall not give credit to an employee of the person or partnership, as the case may be, or to a person who the first-mentioned person knows is an associate of 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 buy or subscribe for securities; or

(b)  the person giving the credit knows or has reason to believe that the credit will be used for the purpose of buying or subscribing for securities.

845(4)  [Employee of sole trader or member firm]  

A person who is an employee of a sole trader or member firm in connection with a business of dealing in securities carried on by the sole trader or member firm shall not, as principal, buy or agree to buy securities or rights or interests in securities unless the sole trader or member firm acts as the agent of the person in respect of the transaction.

845(5)  [Reference to employee of dealer or investment adviser]  

A reference in subsection (1) or (3) to an employee of a person who is a dealer or investment adviser includes, in the case of a body corporate that is a dealer or investment adviser, a reference to an officer of the body.

845(6)  [Reference to employee of sole trader or member firm]  

The reference in subsection (4) to an employee of a sole trader or member firm includes, in the case of a sole trader that is a body corporate or a member firm a partner in which is a body corporate, a reference to an officer of the body.