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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.10 - MARKET MISCONDUCT AND OTHER PROHIBITED CONDUCT RELATING TO FINANCIAL PRODUCTS AND FINANCIAL SERVICES    View history reference

Division 2 - The prohibited conduct (other than insider trading prohibitions)    View history reference

SECTION 1041E  FALSE OR MISLEADING STATEMENTS  

 View history reference

1041E(1)  [Requirements]  


A person must not (whether in this jurisdiction or elsewhere) make a statement, or disseminate information, if:


(a) the statement or information is false in a material particular or is materially misleading; and


(b) the statement or information is likely:


(i) to induce persons in this jurisdiction to apply for financial products; or

(ii) to induce persons in this jurisdiction to dispose of or acquire financial products; or

(iii) to have the effect of increasing, reducing, maintaining or stabilising the price for trading in financial products on a financial market operated in this jurisdiction; and


(c) when the person makes the statement, or disseminates the information:


(i) the person does not care whether the statement or information is true or false; or

(ii) the person knows, or ought reasonably to have known, that the statement or information is false in a material particular or is materially misleading.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1)). For defences to a prosecution based on this subsection, see Division 4.

Note 2: Failure to comply with this subsection may also lead to civil liability under section 1041I. For relief from liability under that section, see Division 4.

1041E(2)  [Physical element; fault element]  


For the purposes of the application of the Criminal Code in relation to an offence based on subsection (1), paragraph (1)(a) is a physical element, the fault element for which is as specified in paragraph (1)(c).

1041E(3)  [Strict liability]  


For the purposes of an offence based on subsection (1), strict liability applies to subparagraphs (1)(b)(i), (ii) and (iii).

Note: For strict liability, see section 6.1 of the Criminal Code.


 



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