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Securities Industry Act 1980
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C2004C06684
01 November 1989
-
14 July 2001
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Part I—Preliminary
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Object
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Part IA—Interpretation
3A Effect of this Part
4 Interpretation
5 Relevant interests in securities
6 Associated persons
6A Businesses of a particular kind
6B Carrying on a business: alone or together with others
6C Exempt dealers and exempt investment advisers
6D Inclusion in official list
6E Investment advice business
6F Proper authority; invalid authority
6G Recognised licensee must be connected with State or Territory concerned
6H Representatives
6J Securities business
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Part II—Administration
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Division 1—General
7 Interpretation
8 Power of Commission to require production of books
9 Power of Magistrate to issue a warrant to seize books
10 Offences
10A Copies or extracts of books to be admitted in evidence
11 Privilege
12 Disclosure to Commission
13 Investigation of certain matters
14 Power of Court to make certain orders
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Division 2—Investigations
15 Interpretation
16 Investigations
17 Conduct of investigations
18 Powers of Commission and inspectors appointed under corresponding laws
19 Powers of inspectors
20 Investigation deemed to be a proceeding
21 Record of examination
22 Record to accompany report
23 Admissibility of record of examination in evidence in proceedings against person examined
24 Admissibility in other proceedings of statements at an examination
25 Weight of evidence
26 Credibility of person who made statements
27 Determination of objection to admissibility of statement
28 Delegation by inspector
29 Reports of investigations
30 Provisions relating to reports
31 Commission’s powers in respect of books
32 Privileged communications
33 Expenses of investigation
34 Concealing etc. of books relating to securities
35 Power of Commission to make certain orders
36 Certain powers not to be delegated
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Part IIA—Australian Stock Exchange Limited
36A Interpretation
36B Incorporation
36C Names of Exchange and Exchange subsidiaries
36D Additional functions and powers
36E Memorandum, articles, listing rules and business rules of Exchange
36F New memorandum and articles of nominated exchange
36G Membership of Exchange
36H Membership of nominated exchange
36J Disciplinary proceedings in respect of past conduct of nominated exchange members
36K Seat redemption scheme
36L Exchange to take over main board listing agreements
36M Transfer of certain assets of nominated exchange
36N Transfer of Part VIII deposits held by nominated exchange
36P How Parts VIII and IX apply in relation to a local Exchange subsidiary
36Q Appointment of new trustees of certain trusts
36R Transfer of assets and liabilities of AASE
36S Transfer of AASE employees
36T Part not to prejudice corresponding provisions
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Part III—Securities exchanges
37 Establishment etc. of stock markets
38 Power of Ministerial Council to approve stock exchange
38A Power of Ministerial Council to approve body corporate as approved securities organisation
38B Publication of instruments executed under section 37, 38 or 38A
39 Commission to be notified of amendments to rules
40 Power of Commission to prohibit trading in particular securities
41 Securities exchanges to provide assistance to Commission
42 Power of Court to order observance or enforcement of business rules or listing rules of securities exchange
42A Certain laws not applicable to option contracts to which this Act applies
42B Qualified privilege in respect of disciplinary proceedings
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Part IV—Participants in the securities industry
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Division 1—Dealers and investment advisers
43 Dealers
45 Investment advisers
47 Application for a licence
48 Grant of licence to natural person
48A Grant of licence to body corporate
48B Effect of certain provisions
51 Conditions of licence
52 Licensee to notify breach of licence condition
53 Furnishing of information and statements to Commission
54 Register of Licence Holders
55 Notifying change in particulars
56 Annual statement of licensee
57 When annual statement to be lodged
58 Commission may extend period for lodging statement
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Division 2—Agreements with unlicensed persons
59A Certain persons not clients
59B Agreements with unlicensed persons
59C Client may give notice of rescission
59D Effect of notice under section 59C
59E Client may apply to Court for partial rescission
59F Court may make consequential orders
59G Agreement unenforceable against client
59H Non-licensee not entitled to recover commission
59J Onus of establishing non-application of section 59G or 59H
59K Client may recover commission paid to non-licensee
59L Remedies under this Division additional to other remedies
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Division 3—Representatives
60A Representatives of dealers
60B Representatives of investment advisers
60C Defence
60D Body corporate not to act as representative
60E Licensee to keep register of holders of proper authorities
60F Licensee to notify Commission of location and contents of register
60G Inspection and copying of register
60H Disclosure to client by representative
60J Commission may require production of authority
60K Commission may give licensee information about representative
60L Holder of authority may be required to return it
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Division 4—Liability of principals for representatives’ conduct
61A Conduct engaged in as a representative
61B Liability where identity of principal unknown
61C Liability of principals where act done in reliance on representative’s conduct
61D Presumptions about certain matters
61E No contracting out of liability for representative’s conduct
61F Effect of Division
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Division 5—Excluding persons from the securities industry
62A Power to revoke, without a hearing, licence held by natural person
62B Power to revoke, without a hearing, licence held by body corporate
62C Power to revoke licence after a hearing
62D Power to suspend licence instead of revoking it
62E Power to make banning order where licence revoked or suspended
62F Power to make banning order against unlicensed person
62G Nature of banning order
62H Exceptions to banning order
62J Variation or revocation of banning order on application
62K Revocation of banning order in certain cases
62L Effect and publication of orders under this Division
62M Contravention of banning order
62N Banned person ineligible for licence
62P Opportunity for hearing
62Q Disqualification by the Court
62R Effect of order under section 62Q or corresponding law
62S Effect of order under previous Territory law corresponding with section 62Q
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Part V—Conduct of securities business
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Division 1—General
63 Certain representation prohibited
64 Issue of contract notes
66 Dealings as principal
67 Use by dealer of clients’ moneys
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Division 2—Short selling of securities
68 Short selling
68A Power of Commission to prohibit short selling in certain cases
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Division 3—Recommendations about securities
68B Recommendation made by partner or officer
68C Client to be told if adviser’s interests may influence recommendation
68D Defences to alleged breach of subsection 68C(2)
68E Adviser must have reasonable basis for recommendation
68F Adviser who breaches this Division liable to compensate client
68G Qualified privilege for adviser when complying with this Division
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Part VI—Accounts and audit
69 Interpretation
70 Application of Part
71 Accounts to be kept by dealers
72 Security documents in custody of dealer
73 Dealers’ trust accounts
74 Purposes for which money may be withdrawn from a trust account
75 Appointment of auditor by dealer
76 Removal and resignation of auditors
77 Fees and expenses of auditors
78 Dealers’ accounts
79 Auditor to report to Commission in certain cases
80 Certain matters to be reported to Commission
81 Defamation
82 Right of securities exchange to impose obligations etc. on members not affected by this Part
83 Power of Court to restrain dealings with dealer’s bank accounts
84 Duty of banker to make full disclosure
85 Power of Court to make further orders and give directions
86 Power of Court to make order relating to payment of moneys
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Part VII—Registers of interests in securities
87 Interpretation
88 Application of Part
89 Register to be maintained
90 Commission to be notified of certain matters on establishment of Register
90A Commission to be notified of changes in certain matters
91 Defences
92 Power of Commission to require production of Register
93 Power of Commission to require certain information
94 Power of Commission to supply copy of Register
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Part VIII—Deposits with stock exchanges
94A Interpretation
95 Deposits to be lodged by member organisations
96 Deposit to be proportion of trust account balances
97 Deposits to be invested by stock exchange
98 Accounts in respect of deposits
99 Claims etc. not affected by this Part
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Part IX—Fidelity funds
99A Interpretation
100 Establishment of fidelity fund
101 Moneys constituting fidelity fund
102 Fund to be kept in separate bank account
103 Payments out of fund
103A Payment to the credit of the fidelity fund of a futures exchange or futures association
104 Accounts of fund
105 Management sub-committee
106 Contributions to fund
107 Provisions where fund exceeds $2,000,000
108 Levy in addition to annual contributions
109 Power of securities exchange to make advances to fund
110 Investment of fund
111 Application of fund
112 Claims against the fund
113 Rights of innocent partner in relation to fund
114 Notice calling for claims against fund
115 Power of committee to settle claims
116 Form of order of Court establishing claim
117 Power of committee to require production of securities etc.
118 Subrogation of securities exchange to rights etc. of claimant on payment from fund
119 Payment of claims only from fund
120 Provision where fund insufficient to meet claims or where claims exceed total amount payable
121 Power of securities exchange to enter into contracts of insurance or indemnity
122 Application of insurance moneys
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Part IXA—The National Guarantee Fund
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Division 1—Interpretation
122AA Interpretation
122AB Excluded persons
122AC Becoming insolvent
122AD Permitted investments
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Division 2—The Corporation
122BA Ministerial Council to nominate
122BB Functions and powers under Fund provisions
122BC Commission to be notified of amendments to business rules
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Division 3—The Fund
122CA Establishment
122CB Property constituting Fund
122CC Fund to be kept in separate bank account
122CD Payments out of Fund
122DA Accounts of Fund
122DB Investment of Fund
122DC Interest and profits from investment of Fund
122DD Minimum amount of Fund
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Division 4—Levies where Fund less than Minimum Amount
122EA Interpretation
122EB Levy on reportable transactions
122EC Payment by leviable dealer
122FA Revocation of levy on reportable transactions
122FB Levy on participating exchanges
122FC Levy by participating exchange on members or member organisations
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Division 5—Securities Industry Development Accounts
122GA Interpretation
122GB Payments where Fund exceeds minimum amount
122GC Payments into and out of development account
122GD Investment
122GE Accounts
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Division 6—Contract Guarantees
122H Interpretation
122J Claim by selling dealer in respect of default by buying dealer
122K Claim by buying dealer in respect of default by selling dealer
122L Claim by selling client in respect of default by selling dealer
122M Claim by buying client in respect of default by buying dealer
122N Cash settlement of claim where settlement documents unobtainable
122P Making of claims
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Division 6A—Unauthorised transfer
122PA Interpretation
122PB Execution of transfer on a person’s behalf as transferor
122PC Unauthorised execution of transfer
122PD Claim by transferor
122PE Claim by transferee or sub-transferee
122PF How and when claim may be made
122PG How claim is to be satisfied
122PH Discretionary further compensation to transferor
122PJ Nexus between dealer and Territory
122PK Preventing double recovery
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Division 7—Claims in respect of Insolvent Members
122Q Interpretation
122R Claim in respect of property entrusted to, or received by, dealer before dealer became insolvent
122S Cash settlement of claims where property unobtainable
122T Ordering of alternative claims and prevention of double recovery
122U No claim in respect of money lent to dealer
122V No claim in certain other cases
122W Limits of compensation
122X Making of claims
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Division 8—Claims generally
122YA Power of Corporation to allow and settle claim
122YB Successful claimant entitled to costs and disbursements
122YC Interest
122YD Application of Fund in respect of certain claims
122YE Allowing of claim not to constitute admission
122YF Corporation to notify claimant where claim disallowed
122YG Proceedings in the Court
122YH Arbitration of amount of cash settlement of certain claims
122YJ Form of order of Court establishing claim
122YK Power of Board to require production of securities etc.
122ZA Subrogation of Corporation to claimant’s rights etc.
122ZB Payment of claims only from Fund
122ZC Corporation may enter into contracts of insurance or indemnity
122ZD Instalment payments
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Division 9—Transitional
122ZE Interpretation
122ZF Assets and liabilities of transferring exchange’s fidelity fund
122ZG Final accounts in respect of transferring exchange’s fidelity fund
122ZH Application of liability provisions in relation to transferred claims
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Part X—Trading in securities
123 Stock market manipulation
124 False trading and market rigging transactions
125 False or misleading statements etc.
126 Fraudulently inducing persons to deal in securities
127 Dissemination of information about illegal transactions
128 Prohibition of dealings in securities by insiders
129 Penalties
130 Compensation for loss etc.
131 Dealer to give priority to clients’ orders
132 Dealings by employees of holders of licences
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Part XI—Miscellaneous
133 Restrictions on use of titles stockbroker, sharebroker and stock exchange
134 Appeal
135 False or misleading statements
136 Preservation and disposal of records etc.
137 Concealing etc. of books relating to securities
138 Falsification of records
139 Precautions against falsification of records
140 Obstructing or hindering Commission etc.
141 General penalty provisions
141A Penalty notices
142 Continuing offences
143 Offences by bodies corporate
144 Certain persons to assist in prosecutions
145 Reciprocity in relation to offences
146 Offences committed partly in and partly out of the Territory
147 Power of Court to prohibit payment or transfer of moneys, securities or other property [see Note 2]
148 Power of Commission to intervene in proceedings
149 Injunctions
149A Power of Court to punish for contempt of Court
150 Regulations
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151 Rules of Court
Notes to the STYLEREF ShortT \* MERGEFORMAT Securities Industry Act 1980
