Document ID: chunk:federal_register_of_legislation:C2004A03315:body:0:p3
Version: federal_register_of_legislation:C2004A03315
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Character Range: 5325–8095

contract or a futures contract of the same kind as that futures contract.
    Penalty: $20,000 or imprisonment for 5 years.
    "(2) Where a person to whom sub-section (1) applies has information as mentioned in that sub-section and, in contravention of that sub-section—
       (a) deals in, or causes or procures another person to deal in, securities; or

       (b) deals in, or causes or procures another person to deal in, a futures contract,
    the first-mentioned person is liable to compensate any other party to the transaction for any loss sustained by that party by reason of—
       (c) any difference between the price at which the securities were dealt in in that transaction and the price at which they would be likely to have been dealt in in such a transaction at the time when the first-mentioned transaction took place if the information had been generally available; or
       (d) any difference between the price at which that dealing in that futures contract took place and the price at which it would be likely to have taken place if the information had been generally available,
    as the case may be.";
    (b) by omitting sub-section (5) and substituting the following sub-section:
    "(5) An action under this section for recovery of compensation for a loss is not maintainable after the end of the period of 2 years commencing on the day of completion of—
       (a) the transaction in which securities were dealt in and in which the loss occurred; or
       (b) the dealing in a futures contract, being the dealing in which the loss occurred,
    as the case requires."; and
    (c) by adding at the end the following sub-section:
    "(8) An expression (other than a reference to a futures contract) used—
       (a) in sub-paragraph (1) (b) (ii), or paragraph (1) (d), (2) (b), (2) (d) or (5) (b), of this section; and
       (b) in the Futures Industry Act 1986,
    has the same meaning in that sub-paragraph or paragraph, as the case may be, as in that Act.".

Notification of interests
10. Section 49 of the Principal Act is amended—
    (a) by inserting after paragraph (1) (c) the following paragraphs:
       "(ca) a futures contract in which the person has a relevant interest;
       (cb) a futures contract that is of the same kind as a futures contract in which the person has a relevant interest;";
    (b) by omitting from sub-section (3) "or particular securities" and substituting ", particular securities, or a particular futures contract,"; and

    (c) by inserting in sub-section (4) ", or in a futures contract, whether a futures contract is of the same kind as another futures contract" after "securities".

PART IV—AMENDMENTS OF SECURITIES INDUSTRY ACT 1980

Principal Act
11. The Securities Industry Act 19803 is