Document ID: chunk:federal_register_of_legislation:C2008A00146:clause:3_1020ae
Version: federal_register_of_legislation:C2008A00146
Segment Type: clause
Provision Reference: sch 3 cl 1020AE
Character Range: 15494–16549

1020AE  Licensee's obligation to ask seller about short sale

  The financial services licensee must not make a sale in this jurisdiction of section 1020B products on a licensed market if:
 (a) the sale is on behalf of a person (the seller); and
 (b) the seller will be obliged under section 1020AB to give the financial services licensee information in relation to the sale; and
 (c) either or both of the following apply:
 (i) before making the sale, the financial services licensee failed to ask the seller, orally or in writing, whether the seller will be obliged under section 1020AB to give the financial services licensee information in relation to the sale;
 (ii) before making the sale, the financial services licensee failed to record, in writing, the seller's answer.

Note 1: Failure to comply with this section is an offence (see subsection 1311(1)).

Note 2: For the definition of writing, see section 25 of the Acts Interpretation Act 1901. For the application of the Acts Interpretation Act 1901 to this Act, see section 5C of this Act.