Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1043l:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1043L (pt 1/5)
Character Range: 4615399–4618080

1043L  A specific situation in which a compensation order under section 1317HA may be made

Situation to which this section applies
 (1) If:
 (a) a person (the insider) possesses information that is not generally available but, if the information were generally available, a reasonable person would expect it to have a material effect on the price or value of Division 3 financial products (other than derivatives); and
 (b) the insider knows that, or is reckless as to whether:
 (i) the information is not generally available; and
 (ii) if the information were generally available, it might have a material effect on the price or value of those Division 3 financial products; and
 (c) the insider (whether as principal or agent) in contravention of subsection 1043A(1):
 (i) applies for, acquires, or disposes of, or enters into an agreement to apply for, acquire, or dispose of, any such Division 3 financial products; or
 (ii) procures another person to apply for, acquire, or dispose of, or to enter into an agreement to apply for, acquire, or dispose of, any such Division 3 financial products;
the following subsections apply.

Compensation for damage suffered by person applying for the Division 3 financial products
 (2) If the insider applied for or agreed to apply for, or procured another person to apply for or to agree to apply for, the Division 3 financial products, the issuer of the products may, by action under section 1317HA, recover as compensation for damage suffered by the issuer, the amount (if any) by which the price described in the first of the following paragraphs was less than the price described in the second of those paragraphs:
 (a) the price at which the products were applied for, or agreed to be applied for, by the insider or the other person;
 (b) the price at which they would have been likely to have been disposed of in a disposal made at the time of the application or the time of the agreement, as the case may be, if the information had been generally available.
The action may be taken against the insider, the other person or any other person involved in the contravention.

Compensation for damage suffered by person disposing of the Division 3 financial products
 (3) If the insider acquired or agreed to acquire, or procured another person to acquire or to agree to acquire, the Division 3 financial products from a person (in this subsection and subsection (5) called the disposer) who did not possess the information, the disposer may, by action under section 1317HA, recover, as compensation for damage suffered by the disposer, the amount (if any) by which the price described in the first of the following paragraphs was less