Section 917A — Corporations Act 2001: Application of Division

(1) This Division applies to any conduct of a representative of a financial services licensee: (a) that relates to the provision of a financial service; and (b) on which a third person (the client) could reasonably be expected to rely; and (c) on which the client in fact relied in good faith. (2) In this Division, a reference to a representative’s conduct being within authority in relation to a particular financial services licensee is, subject to subsection (3), a reference to: (a) if the representative is an employee of the licensee or of a related body corporate of the licensee—conduct being within the scope of the employee’s employment; or (b) if the representative is a director of the licensee or of a related body corporate of the licensee—conduct being within the scope of the director’s duties as director; or (c) in any other case—conduct being within the scope of the authority given by the licensee. (3) If: (a) a person is the representative of more than one financial services licensee in respect of a particular class of financial service; and (b) the person engages in conduct relating to that class of service; and (ba) the conduct relates to a particular kind of financial product prescribed by regulations made for the purposes of paragraph 917C(3)(ba); and (c) any one or more of the licensees issues or transfers a financial product of that kind as a result of the conduct; then, for the purposes of this Division: (d) the person is taken, in respect of the conduct, to have acted within authority in relation to the licensee or to each licensee who issued or transferred a financial product of that kind as a result of the conduct; and (e) the person is, in respect of the conduct, taken not to have acted within authority in relation to any licensee who did not issue or transfer a financial product of that kind as a result of the conduct.