Commonwealth Numbered Acts

COMPANIES AND SECURITIES LEGISLATION AMENDMENT (FUTURES INDUSTRY) ACT 1986 No. 74 of 1986 - SECT 9

9. Section 48 of the Principal Act is amended-

   (a)  by omitting sub-sections (1) and (2) and substituting the following
        sub-sections:

"(1) A person who-

   (a)  is, or has at any time been-

        (i)    appointed for the purposes of this Act or any other prescribed
               Act;

        (ii)   engaged as a member of the staff of the Commission; or

        (iii)  authorised to perform or exercise any function or power of the
               Commission or any function or power on behalf of the
               Commission; and

   (b)  has, by reason that the person is, or has at any time been, so
        appointed, engaged or authorised, information that is not generally
        available but, if it were, would be likely materially to affect-

        (i)    the price of securities; or

        (ii)   the price for dealing in a futures contract,
shall not-

   (c)  in a case where sub-paragraph (b) (i) applies-deal in, or cause or
        procure any other person to deal in, those securities; or

   (d)  in a case where sub-paragraph (b) (ii) applies-deal in, or cause or
        procure any other person to deal in, that futures 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.".