Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 851

851. (1) A securities adviser who:

   (a)  makes a securities recommendation to a person who may reasonably be
        expected to rely on it; and

   (b)  does not have a reasonable basis for making the recommendation to the
        person; contravenes this section.

(2) For the purposes of subsection (1), a securities adviser does not have a
reasonable basis for making a securities recommendation to a person unless:

   (a)  in order to ascertain that the recommendation is appropriate having
        regard to the information the securities adviser has about the
        person's investment objectives, financial situation and particular
        needs, the securities adviser has given such consideration to, and
        conducted such investigation of, the subject matter of the
        recommendation as is reasonable in all the circumstances; and

   (b)  the recommendation is based on that consideration and investigation.

(3) A person who contravenes subsection (1) is not guilty of an offence.