Commonwealth Numbered Acts

FUTURES INDUSTRY ACT 1986 No. 72 of 1986 - SECT 139

139. (1) A person who is a futures broker or a futures adviser and an employee
of that person shall not, as principals, jointly deal in, or agree to deal in,
futures contracts.

(2) A person who is a partner in a partnership that carries on a business of
dealing in futures contracts and an employee of the partnership shall not, as
principals, jointly deal in, or agree to deal in, futures contracts.

(3) A person who is a partner in a partnership that carries on a business in
the course of which advice is given, or analyses or reports are issued or
published, concerning futures contracts and an employee of the partnership
shall not, as principals, jointly deal in, or agree to deal in, futures
contracts.

(4) A person who is a futures broker or a futures adviser shall not give
credit to an employee of that person or to a person who, to the knowledge of
the first-mentioned person, is associated with such an employee if-

   (a)  the credit is given for the purpose of enabling or assisting the
        person to whom the credit is given to deal in futures contracts; or

   (b)  the person giving the credit knows or has reason to believe that the
        credit will be used for the purpose of dealing in futures contracts.

(5) A person who is a partner in a partnership that carries on a business of
dealing in futures contracts shall not give credit to an employee of the
partnership or to a person who, to the knowledge of the first-mentioned
person, is associated with such an employee if-

   (a)  the credit is given for the purpose of enabling or assisting the
        person to whom the credit is given to deal in futures contracts; or

   (b)  the person giving the credit knows or has reason to believe that the
        credit will be used for the purpose of dealing in futures contracts.

(6) A person who is a partner in a partnership that carries on a business in
the course of which advice is given, or analyses or reports are issued or
published, concerning futures contracts shall not give credit to an employee
of the partnership or to a person who, to the knowledge of the firstmentioned
person, is associated with such an employee if-

   (a)  the credit is given for the purpose of enabling or assisting the
        person to whom the credit is given to deal in futures contracts; or

   (b)  the person giving the credit knows or has reason to believe that the
        credit will be used for the purpose of dealing in futures contracts.

(7) A person who is an employee of a member of a futures exchange in
connection with a business of dealing in futures contracts carried on by the
member shall not, as principal, deal, or agree to deal, in futures contracts
unless the member acts as the agent of the person in respect of the
transaction.

(8) A reference in sub-section (1) or (4) to an employee of a person who is a
futures broker or a futures adviser includes, in the case of a body corporate
that is a futures broker or a futures adviser, a reference to an officer of
the body corporate.

(9) The reference in sub-section (7) to an employee of a member of a futures
exchange includes-

   (a)  in the case of a member that is a body corporate; and

   (b)  in the case of a member that is a partnership in which a partner is a
        body corporate, a reference to an officer of the body corporate.

(10) A reference in this section to an employee of a futures broker, futures
adviser, partnership or member of a futures exchange includes a reference to a
person who, pursuant to a subsisting agreement, performs services for the
futures broker, futures adviser, partnership or member in connection with
dealings in futures contracts by the futures broker, futures adviser,
partnership or member.
Penalty: $2,500 or imprisonment for 6 months, or both.