Document ID: chunk:federal_register_of_legislation:C2004A03231:schedule:1:p15
Version: federal_register_of_legislation:C2004A03231
Segment Type: schedule
Provision Reference: sch 1 (pt 15/23)
Character Range: 257391–260067

as a result of doing that act, or refraining from doing that act, as the case may be,
the adviser is liable to pay damages to the person in respect of that loss or damage.
"(5) An adviser who—
     (a) makes a recommendation with respect to securities or a class of securities to a person (in this sub-section referred to as the 'client') who may reasonably be expected to rely on the recommendation; and
     (b) in so making the recommendation, does not contravene sub-section (1),
is not, in the absence of malice on the adviser's part, liable to an action for defamation at the suit of a person in respect of a statement made to the client by the adviser, whether orally or in writing, in the course of, or in connection with, the making of the recommendation to the client.
"(6) Sub-section (5) does not limit or affect any right, privilege or immunity that an adviser has, apart from that sub-section, as defendant in an action for defamation.
"(7) In this section—
     (a) a reference to an adviser is a reference to a person who is a dealer, investment adviser, dealer's representative or investment representative; and
     (b) a reference to the making of a recommendation is a reference to the making of a recommendation whether expressly or by implication.".

Short selling
192. Section 68 of the Principal Act is amended—
     (a) by omitting from sub-paragraph (3) (c) (iii) "or" (last occurring);
     (b) by adding at the end of sub-section (3) the following word and paragraph:
         "; or (e) a sale of securities where—
             (i) the securities are included in a class of securities, being a class in relation to which there is in force a declaration, made by the committee of a securities exchange as provided by the business rules of the securities exchange, to the effect that the class is a class of securities to which this paragraph applies;
             (ii) the sale is effected as provided by the business rules of the securities exchange; and

             (iii) at the time of the sale, neither the person who sold the securities, nor any person on behalf of whom the first-mentioned person sold the securities, was associated, in relation to the sale, with the body corporate that issued or made available the securities."; and
     (c) by omitting from sub-section (4) "or (d)" and substituting ", (d) or (e)".

193. After section 68 of the Principal Act the following section is inserted in Part V:

Power of Commission to prohibit short selling in certain cases
"68a. (1) Where the Commission forms the opinion that it is necessary to prohibit securities, or securities included in a particular class of securities, from being sold