Section 917D — Corporations Act 2001: Exception if lack of authority is disclosed to client

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.