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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 1041F  INDUCING PERSONS TO DEAL  

 View history reference

1041F(1)  [Unlawful conduct]  


A person must not, in this jurisdiction, induce another person to deal in financial products:


(a) by making or publishing a statement, promise or forecast if the person knows, or is reckless as to whether, the statement is misleading, false or deceptive; or


(b) by a dishonest concealment of material facts; or


(c) by recording or storing information that the person knows to be false or misleading in a material particular or materially misleading if:


(i) the information is recorded or stored in, or by means of, a mechanical, electronic or other device; and

(ii) when the information was so recorded or stored, the person had reasonable grounds for expecting that it would be available to the other person, or a class of persons that includes the other person.

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.

1041F(2)  [Meaning of ``dishonest'']  


In this section:

dishonest means:


(a) dishonest according to the standards of ordinary people; and


(b) known by the person to be dishonest according to the standards of ordinary people.

1041F(3)  [Application]  


This section applies in relation to the following conduct as if that conduct were dealing in financial products:


(a) applying to become a standard employer-sponsor (within the meaning of the Superannuation Industry (Supervision) Act 1993) of a superannuation entity (within the meaning of that Act);


(b) permitting a person to become a standard employer-sponsor (within the meaning of the Superannuation Industry (Supervision) Act 1993) of a superannuation entity (within the meaning of that Act);


(c) applying, on behalf of an employee (within the meaning of the Retirement Savings Accounts Act 1997), for the employee to become the holder of an RSA product.


 



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