Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 850

850. (1) Where:

   (a)  a person:

        (i)    when making a recommendation orally, fails to disclose; or

        (ii)   when making a recommendation in writing, fails to set out in
               that writing;
as required by subsection 849 (2), particulars of a matter; and

   (b)  it is proved that the person was not, and could not reasonably be
        expected to have been, aware of that matter when making the
        recommendation; the failure is not a contravention of that subsection.

(2) Where:

   (a)  a dealer or investment adviser, or a representative of a dealer or
        investment adviser:

        (i)    when making a recommendation orally, fails to disclose; or

        (ii)   when making a recommendation in writing, fails to set out in
               that writing;
as required by subsection 849 (2), particulars of a matter;

   (b)  in the case of a representative of a dealer or investment adviser-by
        making the recommendation, the representative does an act as a
        representative of the dealer or investment adviser;

   (c)  it is proved that the dealer or investment adviser had in operation,
        throughout a period beginning before the decision to make the
        recommendation was made and ending after the recommendation was made,
        arrangements to ensure that:

        (i)    the natural person who made the decision knew nothing about
               that matter before the end of that period; and

        (ii)   no advice with respect to the making of the recommendation was
               given to the person by anyone who knew anything about that
               matter; and

   (d)  it is also proved that:

        (i)    the person in fact knew nothing about that matter before the
               end of that period; and

        (ii)   no such advice was so given; the failure is not a contravention
               of that subsection.

(3) Neither of subsections (1) and (2) limits the generality of the other.