Commonwealth Numbered Acts

FUTURES INDUSTRY ACT 1986 No. 72 of 1986 - SECT 129

129. (1) A person shall not deal in a futures contract concerning a body
corporate if the person-

   (a)  is, or at any time during the 6 months preceding the dealing has been,
        connected with the body corporate; and

   (b)  is, by virtue of being, or having so been, connected with the body
        corporate, in possession of information that is not generally
        available but, if it were generally available, would be likely
        materially to affect the price for dealing in a futures contract of
        the same kind as that futures contract.

(2) A person shall not deal in a futures contract concerning a body corporate
if the person-

   (a)  is, or at any time during the 6 months preceding the dealing has been,
        connected with another body corporate; and

   (b)  is, by virtue of being, or having so been, connected with the other
        body corporate, in possession of information that-

        (i)    is not generally available but, if it were generally available,
               would be likely materially to affect the price for dealing in a
               futures contract of the same kind as that futures contract; and

        (ii)   relates to any transaction (actual or expected) involving both
               those bodies corporate or involving one of them and securities
               of the other.

(3) A person who-

   (a)  is in possession of information of a kind referred to in sub-section
        (1) or (2), being information that, if it were generally available,
        would be likely materially to affect the price for dealing in a
        futures contract concerning a body corporate; and

   (b)  is precluded by neither of those sub-sections from dealing in a
        futures
contract (in this sub-section referred to as a "relevant futures contract") of
the same kind as the futures contract referred to in paragraph (a), shall not
deal in a relevant futures contract if the person-

   (c)  has obtained the information, directly or indirectly, from another
        person and is aware, or ought reasonably to be aware, of facts or
        circumstances by virtue of which that other person is then precluded
        by sub-section (1) or (2) from dealing in a relevant futures contract;
        and

   (d)  was, when the information was so obtained, associated with that other
        person or had with that other person an arrangement for the
        communication of information of a kind referred to in sub-section (1)
        or (2) with a view to a dealing in a relevant futures contract by the
        first-mentioned person, by that other person or by both of them
        together.

(4) A person shall not, when precluded by sub-section (1), (2) or (3) from
dealing in a futures contract, cause or procure another person to deal in a
futures contract of the same kind as that futures contract.

(5) A person who, by reason of being in possession of particular information,
is precluded by sub-section (1), (2) or (3) from dealing in a futures contract
shall not, when so precluded, communicate that information to another person
if the first-mentioned person knows, or ought reasonably to know, that the
other person will make use of the information for the purpose of dealing, or
causing or procuring another person to deal, in a futures contract of the same
kind as that futures contract.

(6) Without prejudice to sub-section (3), but subject to sub-sections (7) and
(8), where an officer of a body corporate is precluded by sub-section (1), (2)
or (3) from dealing in a futures contract, the body corporate shall not, when
the officer is so precluded, deal in a futures contract of the same kind as
that futures contract.

(7) A body corporate is not, by reason only of information in the possession
of an officer of the body corporate, precluded by sub-section (6) from
entering into a transaction at a particular time if-

   (a)  the decision to enter into the transaction was taken on its behalf by
        a person other than the officer;

   (b)  it had in operation at that time arrangements to ensure that the
        information was not communicated to that person and that no advice
        with respect to the transaction was given to that person by a person
        in possession of the information; and

   (c)  the information was not so communicated and no such advice was so
        given.

(8) A body corporate is not, by reason only of information in the possession
of an officer of the body corporate, precluded by sub-section (6) from dealing
in a futures contract concerning another body corporate if the information-

   (a)  was obtained by the officer in the course of the performance of duties
        as an officer of the first-mentioned body corporate; and

   (b)  relates only to a proposed dealing by the first-mentioned body
        corporate in securities of, or a futures contract concerning, the
        other body corporate.

(9) Nothing in this section precludes the holder of a futures broker's licence
from dealing in a futures contract concerning a body corporate if-

   (a)  the holder of the licence enters into the dealing as agent for another
        person pursuant to a specific instruction by that other person to
        enter into that dealing;

   (b)  the holder of the licence has not given any advice to the other person
        in relation to dealing in a futures contract concerning the body
        corporate; and

   (c)  the other person is not associated, in relation to the dealing, with
        the holder of the licence.

(10) Where a prosecution is instituted against a person for an offence because
the person was in possession of particular information and dealt in a
futures contract in contravention of this section, it is a defence if it is
established that the other party to the dealing knew, or ought reasonably to
have known, the information before entering into the dealing.

(11) For the purposes of this section, a futures contract concerns a body
corporate if, and only if-

   (a)  in a case where the futures contract is a commodity agreement-a
        commodity to which the futures contract relates is securities of the
        body corporate; or

   (b)  in a case where the futures contract is an adjustment agreement-a
        state of affairs to which the futures contract relates concerns the
        price of securities of the body corporate, or the prices of a class of
        securities that includes securities of the body corporate, at a
        particular time.

(12) For the purposes of this section, a person is connected with a body
corporate (in this sub-section referred to as the "relevant body corporate")
if the person is a natural person and-

   (a)  is an officer of the relevant body corporate or of a related body
        corporate;

   (b)  is a substantial shareholder within the meaning of Division 4 of Part
        IV of the Companies Act 1981 in the relevant body corporate or in a
        related body corporate; or

   (c)  occupies a position that may reasonably be expected to give the person
        access to information of a kind referred to in sub-section (1) or (2)
        by virtue of-

        (i)    any professional or business relationship existing between the
               person (or the person's employer or a body corporate of which
               the person is an officer) and the relevant body corporate or a
               related body corporate; or

        (ii)   the person being an officer of a substantial shareholder within
               the meaning of Division 4 of Part IV of the Companies Act 1981
               in the relevant body corporate or in a related body corporate.
(13) For the purposes of sub-section (12), "officer", in relation to a body
corporate, includes-

   (a)  a director, secretary, executive officer or employee of the body
        corporate;

   (b)  a receiver, or a receiver and manager, of property of the body
        corporate;

   (c)  an official manager or a deputy official manager of the body
        corporate;

   (d)  a liquidator of the body corporate; and

   (e)  a trustee or other person administering a compromise or arrangement
        made between the body corporate and another person or other persons.

(14) A reference in this section to a futures contract of the same kind as a
particular futures contract includes a reference to the particular futures
contract.
(15) In this section, "securities" has the same meaning as that expression has
in the Securities Industry Act 1980.