Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_953b:p1
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 953B (pt 1/2)
Character Range: 440977–443687

953B  Civil action for loss or damage

 (1) This section applies in the following situations:
 (a) a person:
 (i) is required by a provision of this Part to give another person (the client) a disclosure document or statement (the required disclosure document or statement); and
 (ii) does not give (within the meaning of section 940C) the client anything purporting to be the required disclosure document or statement by the time they are required to do so; or
 (b) a person:
 (i) gives another person (the client) a disclosure document or statement that is defective in circumstances in which a disclosure document or statement is required by a provision of this Part to be given to the client; or
 (ii) is a financial services licensee and gives, or makes available to, another person (the client) a disclosure document or statement, being a Financial Services Guide or a Supplementary Financial Services Guide, that is defective, reckless as to whether the client will or may rely on the information in it; or
 (c) a person contravenes section 945A, 945B, 949A, 949B, 950B or 950C.
In paragraph (b), give means give by any means (including orally), and is not limited to the meaning it has because of section 940C.

 (2) In a situation to which this section applies, if a person suffers loss or damage:
 (a) if paragraph (1)(a) applies—because the client was not given the disclosure document or statement that they should have been given; or
 (b) if paragraph (1)(b) applies—because the disclosure document or statement the client was given was defective; or
 (c) if paragraph (1)(c) applies—because of the contravention referred to in that paragraph;
the person may, subject to subsection (6), recover the amount of the loss or damage by action against the, or a, liable person (see subsections (3) and (4)), whether or not that person (or anyone else) has been convicted of an offence in respect of the matter referred to in paragraph (a), (b) or (c).

 (3) For the purposes of subsection (2), the, or a, liable person is:
 (a) if the person first‑referred to in paragraph (1)(a), (b) or (c) is a financial services licensee or a member of a declared professional body—subject to subsection (4), that person; or
 (b) if the person first‑referred to in paragraph (1)(a), (b) or (c) is an authorised representative of only one financial services licensee—that financial services licensee; or
 (c) if the person first‑referred to in paragraph (1)(a), (b) or (c) is an authorised representative of more than one financial services licensee:
 (i) if, under the rules in section 917C, one of those licensees is responsible for the person's conduct—that licensee; or
 (ii) if, under the rules in section 917C, 2