Commonwealth Numbered Regulations

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS REGULATIONS 2001 2001 No. 193 - REG 7.3.02C

Licence conditions — personal securities recommendations to retail investors
(1)
For subsection 786 (1) of the Act, a licence is subject to the condition that, if the licensee gives a personal securities recommendation to a retail investor and the retail investor fails to give to the licensee relevant personal information, the licensee must give to the investor a clear warning that:

(a)
states that the licensee has not been able to undertake a comprehensive analysis of the investment objectives, financial situation and particular needs of the investor; and

(b)
sets out the limitations on the appropriateness of the recommendation because of the lack of relevant personal information about the investor; and

(c)
states that the investor needs to consider whether the recommendation is appropriate in light of the particular investment needs, objectives and financial circumstances of the investor.

(2)
In this regulation:

"personal securities recommendation" means a recommendation given to a person (whether expressly or impliedly and whether directly or indirectly) that certain securities transactions are appropriate to the person, having regard to the investment objectives, financial situation and particular needs of that person.

"relevant personal information" means information that is sufficient in order to have a reasonable basis, under section 851 of the Act, for making a securities recommendation.

"retail investor" has the same meaning as in subregulation 7.3.02B (10).


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback