(2) Subject to subsection (5), a dealer must 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. (3) A dealer who, on the dealer's own account, enters into a transaction of sale or purchase of securities with a non-dealer must state in the contract note that the dealer is acting in the transaction as principal and not as agent. (4) 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 must not charge the non-dealer brokerage, commission or any other fee in respect of the transaction. (5) 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. (7) 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;