Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:15:p38
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 15 (pt 38/73)
Character Range: 1782700–1785446

applies to the conduct under the relevant legal regime under which the particular principal is operating.
 (5) If subregulation (4) does not apply:
 (a) the liability for the conduct is to be determined in accordance with the relevant law that applies to the conduct; and
 (b) section 917B and subsection 917C(4) of the Act apply in relation to the liability of an FSR principal only if the conduct is in a class of financial services that the FSR principal has authorised the representative to provide.

10.2.103  Conduct by a person who operates as representative and principal
 (1) Despite anything else in this Division, or in regulation 10.2.42, if:
 (a) the conduct of a representative causes a liability, loss, damage or a similar consequence to arise; and
 (b) at the time the conduct is engaged in, the representative is also a principal that is authorised or permitted under any law to provide financial services in the class of financial services to which the conduct relates;
the representative is liable (whether as a principal or as a representative) to the extent that the law under which the representative provides the relevant financial services makes the representative liable.
 (2) Despite regulation 10.2.42, if:
 (a) the conduct of a representative causes a liability, loss, damage or a similar consequence to arise; and
 (b) the representative is also a principal that is authorised or permitted to provide financial services in the same class of financial services as the financial service to which the conduct relates; and
 (c) at the time the conduct occurred, the representative's principal or principals:
 (i) had authorised the representative to provide the same class of financial services; and
 (ii) are liable in respect of the conduct;
the representative, and the principal or principals, are jointly and severally liable in accordance with the law under which they are liable, to the extent that the same or similar liability exists.
Note: Under regulation 10.2.42, there are some restrictions on a person who acts both as an authorised representative and as a regulated principal in respect of the same activities.
 For example, if a principal is liable to a person in respect of an amount of money ($X), and the representative is also liable in respect of an amount of money ($X + $Y) in respect of the same conduct, both of them will be jointly and severally liable for $X, but the representative will be liable to pay $Y.

10.2.104  Operation of regulations 10.2.102 and 10.2.103
 (1) Subject to subregulations (2) and (3), and without limiting any right or liability of a person (the client), if the effect of regulations 10.2.102 and 10.2.103 is that different rights or remedies are available to different