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  

View history reference

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) 
View history reference
(Repealed by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).)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.

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.