Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW
- SECT 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.