Corporations Act 2001
CHAPTER 7 - FINANCIAL SERVICES AND MARKETS
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
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Hide history notePART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES
CCH note - modifying legislative instruments: The application of Pt 7.6 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Custody Standards for Providers of Custodial and Depository Services) Instrument 2024/17 (other than Divs 4 and 8); the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 (as amended by ASIC Corporations (Amendment) Instrument 2024/554) (other than Divs 4 and 8); the ASIC Corporations (Record-Keeping Requirements for Australian Financial Services Licensees when Giving Personal Advice) Instrument 2024/508 (other than Divs 4 and 8); and the ASIC Corporations and Credit (Breach Reporting - Reportable Situations) Instrument 2024/620 (other than Divs 4 and 8).
The application of Pt 7.6 is also affected by the Class Order 14/1262: Relief for 31 Day Notice Term Deposits (other than Divs 4 and 8); and the ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution) Instrument 2020/98 (other than Divs 4 and 8).
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 7.6, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
Division 6 - Liability of financial services licensees for representatives
CCH Note - modifying legislative instruments: The application of Division 6 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705; the ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647; and the ASIC Corporations (Financial Requirements for Custodial or Depository Service Providers) Instrument 2023/648.
For legislative instruments or class orders before 1 January 2022 that affect the application of Division 6, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
SECTION 917A APPLICATION OF DIVISION
CCH note: This provision is modified by legislative instruments. See the CCH note at the end of the provision for details.
917A(1)
This Division applies to any conduct of a representative of a financial services licensee:
(a) that relates to the provision of a financial service; and
(b) on which a third person (the client ) could reasonably be expected to rely; and
(c) on which the client in fact relied in good faith.
917A(2)
In this Division, a reference to a representative ' s conduct being within authority in relation to a particular financial services licensee is, subject to subsection (3), a reference to:
(a) if the representative is an employee of the licensee or of a related body corporate of the licensee - conduct being within the scope of the employee ' s employment; or
(b) if the representative is a director of the licensee or of a related body corporate of the licensee - conduct being within the scope of the director ' s duties as director; or
(c) in any other case - conduct being within the scope of the authority given by the licensee.
917A(3)
If:
(a) a person is the representative of more than one financial services licensee in respect of a particular class of financial service; and
(b) the person engages in conduct relating to that class of service; and
(ba) the conduct relates to a particular kind of financial product prescribed by regulations made for the purposes of paragraph 917C(3)(ba) ; and
(c) any one or more of the licensees issues or transfers a financial product of that kind as a result of the conduct;
then, for the purposes of this Division:
(d)
the person is taken, in respect of the conduct, to have acted within authority in relation to the licensee or to each licensee who issued or transferred a financial product of that kind as a result of the conduct; and(e)
the person is, in respect of the conduct, taken not to have acted within authority in relation to any licensee who did not issue or transfer a financial product of that kind as a result of the conduct.CCH Note - modifying legislative instruments: Section 917A is modified by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705; the ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647; and the ASIC Corporations (Financial Requirements for Custodial or Depository Service Providers) Instrument 2023/648.
For modifying legislative instruments or class orders before 1 January 2022, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
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