CORPORATIONS ACT 2001 - SECT 917D Exception if lack of authority is disclosed to client

CORPORATIONS ACT 2001 - SECT 917D

    A financial services licensee is not responsible under section   917B or 917C for the conduct of their representative if:

  (a)   the conduct is not within authority in relation to the licensee (or in relation to any of the licensees, if there were more than one); and

  (b)   the representative disclosed that fact to the client before the client relied on the conduct; and

  (c)   the clarity and the prominence of the disclosure was such as a person would reasonably require for the purpose of deciding whether to acquire the relevant financial service.

Note:   A person must not hold out that conduct, or proposed conduct, of the person is within authority in relation to a particular financial services licensee, unless that is the case. See section   911C.