Commonwealth Numbered Acts

CO-OPERATIVE SCHEME LEGISLATION AMENDMENT ACT 1989 No. 92 of 1989 - SECT 75

75. Sections 77, 78, 79 and 80 of the Principal Act are repealed and the
following Divisions are substituted:
                "Division 2 - Agreements with unlicensed persons


"Subdivision A - Agreements affected Excluded clients

"77A. In this Division:
'excluded client' means a person who is:

   (a)  a futures broker;

   (b)  a futures adviser; or

   (c)  one of 2 or more persons who together constitute a futures broker or
        futures adviser. Agreement about a dealing in breach of section 61

"77B. Where a person (in this section and Subdivision B called the
'non-licensee') and another person (in this section and Subdivision B called
the 'client'), not being an excluded client, enter into an agreement relating
to a dealing or proposed dealing in a futures contract by the non-licensee on
the client's behalf, being a dealing or proposed dealing involving a
contravention by the non-licensee of subsection 61 (1) or (2), Subdivision B
applies, whether or not anyone else is a party to the agreement. Agreement
with person acting in breach of section 63

"77C. Where, during a period when a person (in this section and Subdivision B
called the 'non-licensee'), in contravention of section 63, carries on a
futures advice business or holds himself, herself or itself out to be a
futures adviser, the non-licensee and a client (other than an excluded client)
of the non-licensee enter into an agreement that relates to advising the
client about futures contracts or to giving the client futures reports,
Subdivision B applies, whether or not anyone else is a party to the agreement.

"Subdivision B - Effect on agreements Client may give notice of rescission

"77D. (1) Subject to this section, the client may, whether before or after
completion of the agreement, give to the non-licensee a written notice stating
that the client wishes to rescind the agreement.

"(2) The client may only give a notice under this section within a reasonable
period after becoming aware of the facts entitling the client to give the
notice.

"(3) The client is not entitled to give a notice under this section if the
client engages in conduct by engaging in which the client would, if the
entitlement so to give a notice were a right to rescind the agreement for
misrepresentation by the non-licensee, be taken to have affirmed the
agreement.

"(4) The client is not entitled to give a notice under this section if, within
a reasonable period before the agreement was entered into, the non-licensee
informed the client (whether or not in writing) that:

   (a)  the non-licensee did not hold a futures broker's licence; or

   (b)  the non-licensee did not hold a futures broker's licence and did not
        hold a futures adviser's licence; as the case requires.

"(5) If, at a time when a futures broker's licence or futures adviser's
licence held by the non-licensee was suspended, the non-licensee informed the
client that the licence was suspended, the non-licensee is to be taken for the
purposes of subsection (4) to have informed the client at that time that the
non-licensee did not hold a futures broker's licence or futures adviser's
licence, as the case may be.

"(6) A reference in subsection (4) or (5) to a futures broker's licence or
futures adviser's licence is a reference to a futures broker's licence or
futures adviser's licence, as the case may be, granted under this Part or
under the provisions of a law of a participating State or participating
Territory that correspond with this Part.

"(7) None of subsections (2), (3) and (4) limits the generality of either of
the others.

"(8) Subject to this section, the client may give a notice under this section
whether or not:

   (a)  the notice will result under section 77E in rescission of the
        agreement; or

   (b)  the Court will, if the notice so results, be empowered to make a
        particular order, or any order at all, under section 77G. Effect of
        notice under section 77D

"77E. A notice given under section 77D rescinds the agreement unless
rescission of the agreement would prejudice a right, or an estate in property,
acquired by a person (other than the non-licensee) in good faith, for valuable
consideration and without notice of the facts entitling the client to give the
notice. Client may apply to Court for partial rescission

"77F. (1) If the client gives a notice under section 77D but the notice does
not rescind the agreement because rescission of it would prejudice a right or
estate of the kind referred to in section 77E, the client may, within a
reasonable period after giving the notice, apply to the Court for an order
under subsection (4) of this section.

"(2) The Court may extend the period for making an application under
subsection (1).

"(3) If an application is made under subsection (1), the Court may make such
orders expressed to have effect until the determination of the application as
it would have power to make if the notice had rescinded the agreement under
section 77E and the application were for orders under section 77G.

"(4) On an application under subsection (1), the Court may make an order:

   (a)  varying the agreement in such a way as to put the client in the same
        position, as nearly as can be done without prejudicing such a right or
        estate acquired before the order is made, as if the agreement had not
        been entered into; and

   (b)  declaring the agreement to have had effect as so varied at and after
        the time when it was originally made.

"(5) If the Court makes an order under subsection (4), the agreement shall be
taken for the purposes of section 77G to have been rescinded under section
77E.

"(6) An order under subsection (4) does not affect the application of section
77J or 77L in relation to the agreement as originally made or as varied by the
order. Court may make consequential orders

"77G. (1) Subject to subsection (2), on rescission of the agreement under
section 77E, the Court may, on the application of the client or the
non-licensee, make such orders as it would have power to make if the client
had duly rescinded the agreement for misrepresentation by the non-licensee.

"(2) The Court is not empowered to make a particular order under subsection
(1) if the order would prejudice a right, or an estate in property, acquired
by a person (other than the non-licensee) in good faith, for valuable
consideration and without notice of the facts entitling the client to give the
notice. Agreement unenforceable against client

"77H. (1) This section:

   (a)  applies while both of the following are the case:

        (i)    the client is entitled to give a notice under section 77D;

        (ii)   a notice so given will result under section 77E in rescission
               of the agreement; and

   (b)  applies after the agreement is rescinded under section 77E; but does
        not otherwise apply.

"(2) The non-licensee is not entitled, as against the client:

   (a)  to enforce the agreement, whether directly or indirectly; or

   (b)  to rely on the agreement, whether directly or indirectly and whether
        by way of defence or otherwise. Non-licensee not entitled to recover
        commission

"77J. (1) Without limiting the generality of section 77H, this section:

   (a)  applies while the client is entitled to give a notice under section
        77D; and

   (b)  applies after the client so gives a notice, even if the notice does
        not result under section 77E in rescission of the agreement; but does
        not otherwise apply.

"(2) The non-licensee is not entitled to recover by any means (including, for
example, set-off or a claim on a quantum meruit) any brokerage, commission or
other fee for which the client would, but for this section, have been liable
to the non-licensee under or in connection with the agreement. Onus of
establishing non-application of section 77H or 77J

"77K. For the purposes of determining in a proceeding whether or not the
non-licensee is, or was at a particular time, entitled as mentioned in
subsection 77H (2) or 77J (2), it shall be presumed, unless the contrary is
proved, that section 77H or 77J, as the case may be, applies, or applied at
that time, as the case may be. Client may recover commission paid to
non-licensee

"77L. (1) Without limiting the generality of section 77G, if the client gives
a notice under section 77D, the client may, even if the notice does not result
under section 77E in rescission of the agreement, recover from the
non-licensee as a debt the amount of any brokerage, commission or other fee
that the client has paid to the non-licensee under or in connection with the
agreement.

"(2) The Commission may, if it considers that it is in the public interest to
do so, bring an action under subsection (1) in the name of, and for the
benefit of, the client. Remedies under this Division additional to other
remedies

"77M. The client's rights and remedies under this Division are additional to,
and do not prejudice, any other right or remedy of the client.
                         "Division 3 - Representatives
Representatives of futures brokers

"78A. A natural person shall not do an act as a representative of a futures
broker (other than an exempt broker) unless:

   (a)  the broker holds a futures broker's licence or is a recognised futures
        broker; and

   (b)  the person holds a proper authority from the broker.
Penalty: $2,500 or imprisonment for 6 months, or both. Representatives of
futures advisers

"78B. A natural person shall not do an act as a representative of a futures
adviser (other than an exempt futures adviser) unless:

   (a)  the futures adviser:

        (i)    is also a futures broker and either holds a futures broker's
               licence or is a recognised futures broker; or

        (ii)   holds a futures adviser's licence or is a recognised futures
               adviser; and

   (b)  the person holds a proper authority from the futures adviser.
Penalty: $2,500 or imprisonment for 6 months, or both. Defence

"78C. It is a defence to a prosecution for a contravention of section 78A or
78B constituted by an act done by a person as a representative of another
person if it is proved that:

   (a)  but for the revocation of, or the making under section 80D or a
        provision of a law of a participating State or participating Territory
        that corresponds with that section of an order relating to, a licence
        or recognised licence held by the other person, the act would not have
        been such a contravention;

   (b)  when he or she did the act, the first-mentioned person:

        (i)    believed in good faith that the other person held the licence
               or recognised licence; and

        (ii)   was unaware of the revocation or order; and

   (c)  in all the circumstances it was reasonable for the first-mentioned
        person so to believe and to be unaware of the revocation or order.
        Body corporate not to act as representative

"78D. A body corporate shall not do an act as a representative of a person.
Penalty: $5,000 or imprisonment for 1 year, or both. Licensee to keep register
of holders of proper authorities

"78E. (1) A licensee shall establish a register of the persons who hold proper
authorities from the licensee and shall keep it in accordance with this
section.

"(2) The register shall be in writing or in such other form as the Commission
approves.

"(3) The register shall contain, in relation to each person (if any) who holds
a proper authority ffom the licensee:

   (a)  a copy of the proper authority;

   (b)  the person's name;

   (c)  the person's current residential address;

   (d)  unless the person's current business address is the same as the
        licensee's - the person's current business address; and

   (e)  such other information (if any) as is prescribed.

"(4) A copy of a proper authority of a person from the licensee that
subsection (3) requires the register to contain shall be included in the
register within 2 business days after the person begins to hold that proper
authority.

"(5) Information that subsection (3) requires the register to contain in
relation to a person shall be entered in the register within 2 business days
after:

   (a)  the person begins to hold a proper authority from the licensee; or

   (b)  the licensee receives the information; whichever happens later.

"(6) Within 2 business days after a person ceases to hold a proper authority
from the licensee, the licensee shall:

   (a)  in any case:

        (i)    include, in a part of the register separate from the part in
               which copies of proper authorities are included under
               subsection (4); and

        (ii)   remove from the last-mentioned part; the copy of the proper
               authority that was included in the last-mentioned part; and

   (b)  unless, at the end of those 2 business days, the person again holds a
        proper authority from the licensee:

        (i)    enter, in a part of the register separate from the part in
               which information is entered under subsection (5); and

        (ii)   remove from the last-mentioned part; the information that has
               been entered in the last-mentioned part in relation to the
               person.

"(7) Information that has been entered under paragraph (6) (b) in a separate
part of the register shall be deemed for the purposes of subsections (3) and
(5) not to be contained or entered in the register. Licensee to notify
Commission of location and contents of register

"78F. (1) This section has effect where a licensee keeps a register under
section 78E.

"(2) Within 14 days after establishing the register, the licensee shall lodge
written notice of where the register is kept.

"(3) As soon as practicable after changing the place where the register is
kept, the licensee shall lodge written notice of the new place where the
register is kept.

"(4) Within 2 business days after the day on which a person begins to hold a
particular proper authority from the licensee, the licensee shall, whether or
not the person has previously held a proper authority from the licensee,
lodge:

   (a)  a copy of the first-mentioned proper authority; and

   (b)  a written notice stating that the person began to hold that proper
        authority on that day.

"(5) Within the period within which subsection 78E (5) requires the licensee
to enter in the register information that the register must contain because of
paragraph 78E (3) (b), (c), (d) or (e), the licensee shall lodge a written
notice setting out the information and stating that the information has been,
or is to be, entered in the register.

"(6) Within 2 business days after a person ceases to hold a proper authority
from the licensee, the licensee shall, unless at the end of those 2 business
days the person again holds a proper authority from the licensee, lodge a
written notice stating that the person has ceased to hold such a proper
authority. Inspection and copying of register

"78G. (1) A licensee shall ensure that a register kept under section 78E by
the licensee is open for inspection without charge.

"(2) A person may by writing request a licensee to give the person a copy of
the whole, or of a specified part, of a register kept by the licensee under
section 78E.

"(3) A licensee shall comply with a request under subsection (2) within 2
business days after:

   (a)  if the licensee requires the person to pay for the copy an amount of
        not more than the prescribed amount - receiving the amount from the
        person; or

   (b)  otherwise - receiving the request. Commission may require production
        of authority

"78H. (1) Where the Commission has reason to believe that a person:

   (a)  holds a proper authority from a licensee or recognised licensee; or

   (b)  has done an act as a representative of another person; then, whether
        or not the Commission knows who the licensee, recognised licensee or
        other person is, it may require the first-mentioned person to produce:

   (c)  any proper authority from a licensee or recognised licensee; or

   (d)  any invalid authority from a person; that the first-mentioned person
        holds.

"(2) A person shall not, without reasonable excuse, refuse or fail to comply
with a requirement under this section.
Penalty: $2,500 or imprisonment for 6 months, or both. Commission may give
licensee information about representative

"78J. (1) Where the Commission believes on reasonable grounds that:

   (a)  a person (in this section called the 'holder') holds, or will hold, a
        proper authority from a licensee;

   (b)  having regard to that fact, the Commission should give to the licensee
        particular information that the Commission has about the person; and

   (c)  the information is true; the Commission may give the information to
        the licensee.

"(2) Where the Commission gives information under subsection (1), the licensee
or an officer of the licensee may, for a purpose connected with:

   (a)  the licensee making a decision about what action (if any) to take in
        relation to the holder, having regard to, or to matters including, the
        information; or

   (b)  the licensee taking action pursuant to such a decision; or for 2 or
        more such purposes, and for no other purpose, give to another person,
        make use of, or make a record of, some or all of the information.

"(3) A person to whom information has been given, in accordance with
subsection (2) or this subsection, for a purpose or purposes may, for that
purpose or one or more of those purposes, and for no other purpose, give to
another person, make use of, or make a record of, that information.

"(4) Subject to subsections (2) and (3), a person shall not give to another
person, make use of, or make a record of, information given by the Commission
under subsection (1).

"(5) A person has qualified privilege in respect of an act done by the person
as permitted by subsection (2) or (3).

"(6) A person to whom information is given in accordance with this section
shall not:

   (a)  give any of the information to a court; or

   (b)  produce in a court a document that sets out some or all of the
        information; except:

   (c)  for a purpose connected with:

        (i)    the licensee making a decision about what action (if any) to
               take in relation to the holder, having regard to, or to matters
               including, some or all of the information;

        (ii)   the licensee taking action pursuant to such a decision; or

        (iii)  proving in a proceeding in that court that particular action
               taken by the licensee in relation to the holder was so taken
               pursuant to such a decision; or for 2 or more such purposes,
               and for no other purpose;

   (d)  in a proceeding in that court, in so far as the proceeding relates to
        an alleged contravention of this section;

   (e)  in a proceeding in respect of an ancillary offence relating to an
        offence against this section; or

   (f)  in a proceeding in respect of the giving to a court of false
        information being or including some or all of the first-mentioned
        information.

"(7) A reference in this section to a person taking action in relation to
another person is a reference to the first-mentioned person:

   (a)  taking action by way of making, terminating, or varying the terms and
        conditions of; or

   (b)  otherwise taking action in relation to; an agreement, in so far as the
        agreement relates to the other person being employed by, or acting for
        or by arrangement with, the first-mentioned person in connection with
        a futures broking business or futures advice business carried on by
        the first-mentioned person.

"(8) In this section:
'licensee' includes a recognised licensee.
Penalty: $5,000 or imprisonment for 1 year, or both. Holder of authority may
be required to return it

"78K. (1) Where a person holds a proper authority from a licensee but is
neither employed by, nor authorised to act for or by arrangement with, the
licensee, the licensee may, by writing given to the person, require the person
to give the proper authority to the licensee within a specified period of not
less than 2 business days.

"(2) Where a person holds an invalid authority from another person, the other
person may, by writing given to the first-mentioned person, require the
first-mentioned person to give the invalid authority to the other person
within a specified period of not less than 2 business days.

"(3) A person shall not, without reasonable excuse, refuse or fail to comply
with a requirement made of the person in accordance with subsection (1) or
(2).

"(4) In this section:
'licensee' includes a recognised licensee.

"Division 4 - Liability of principals for representatives' conduct Conduct
engaged in as a representative

"79A. Where a person engages in conduct as a representative of another person
(in this section called the 'principal'), then, as between the principal and a
third person (other than the Commission), the principal is liable in respect
of that conduct in the same manner, and to the same extent, as if the
principal had engaged in it. Liability where identity of principal unknown

"79B. (1) This section applies for the purposes of a proceeding in a court
where:

   (a)  a person (in this section called the 'representative') engages in
        particular conduct while the person is a representative of 2 or more
        persons (in this section called the 'indemnifying principals'); and

   (b)  it is proved for the purposes of the proceeding that the
        representative engaged in the conduct as a representative of some
        person (in this section called the 'unknown principal') but it is not
        proved for those purposes who the unknown principal is.

"(2) If only one of the indemnifying principals is a party to the proceeding,
he, she or it is liable in respect of that conduct as if he, she or it were
the unknown principal.

"(3) If 2 or more of the indemnifying principals are parties to the
proceeding, each of those parties is liable in respect of that conduct as if
he, she or it were the unknown principal. Liability of principals where act
done in reliance on representative's conduct

"79C. (1) This section applies where:

   (a)  at a time when a person (in this section called the 'representative')
        is a representative of only one person (in this section called the
        'indemnifying principal') or of 2 or more persons (in this section
        called the 'indemnifying principals'), the representative:

        (i)    engages in particular conduct; or

        (ii)   proposes, or represents that the representative proposes, to
               engage in particular conduct;

   (b)  another person (in this section called the 'client') does, or omits to
        do, a particular act because the client believes at a particular time
        in good faith that the representative engaged in, or proposes to
        engage in, as the case may be, that conduct:

        (i)    on behalf of some person (in this section called the 'assumed
               principal') whether or not identified, or identifiable, at that
               time by the client; and

        (ii)   in connection with a futures broking business or futures advice
               business carried on by the assumed principal; and

   (c)  it is reasonable to expect that a person in the client's circumstances
        would so believe and would do, or omit to do, as the case may be, that
        act because of that belief; whether or not that conduct is or would be
        within the scope of the representative's employment by, or authority
        from, any person.

"(2) If:

   (a)  subparagraph (1) (a) (i) applies; or

   (b)  subparagraph (1) (a) (ii) applies and the representative engages in
        that conduct; then:

   (c)  as between the indemnifying principal and the client or a person
        claiming through the client, the indemnifying principal is liable; or

   (d)  as between any of the indemnifying principals and the client or a
        person claiming through the client, each of the indemnifying
        principals is liable; as the case may be, in respect of that conduct
        in the same manner, and to the same extent, as if he, she or it had
        engaged in it.

"(3) Without limiting the generality of subsection (2), the indemnifying
principal, or each of the indemnifying principals, as the case may be, is
liable to pay damages to the client in respect of any loss or damage that the
client suffers as a result of doing, or omitting to do, as the case may be,
the act referred to in paragraph (1) (b).

"(4) If:

   (a)  there are 2 or more indemnifying principals;

   (b)  2 or more of them are parties (in this subsection called the
        'indemnifying parties') to a proceeding in a court;

   (c)  it is proved for the purposes of the proceeding:

        (i)    that the representative engaged in that conduct as a
               representative of some person; and

        (ii)   who that person is; and

   (d)  that person is among the indemnifying parties; subsections (2) and (3)
        do not apply, for the purposes of the proceeding, in relation to the
        indemnifying parties other than that person. Presumptions about
        certain matters

"79D. (1) Where it is proved, for the purposes of a proceeding in a court that
a person (in this subsection called the 'representative') engaged in
particular conduct while the person was a representative of:

   (a)  only one person (in this subsection called the 'indemnifying
        principal'); or

   (b)  2 or more persons (in this subsection called the 'indemnifying
        principals'); then, unless the contrary is proved for the purposes of
        the proceeding, it shall be presumed for those purposes that the
        representative engaged in the conduct as a representative of:

   (c)  the indemnifying principal; or

   (d)  as a representative of some person among the indemnifying principals;
        as the case may be.

"(2) Where, for the purposes of establishing in a proceeding in a court that
section 79C applies, it is proved that a person did, or omitted to do, a
particular act because the person believed at a particular time in good faith
that certain matters were the case, then, unless the contrary is proved for
those purposes, it shall be presumed for those purposes that it is reasonable
to expect that a person in the first-mentioned person's circumstances would so
believe and would do, or omit to do, as the case may be, that act because of
that belief. No contracting out of liability for representative's conduct

"79E. (1) For the purposes of this section, a liability of a person:

   (a)  in respect of conduct engaged in by another person as a representative
        of the first-mentioned person; or

   (b)  arising under section 79C because another person has engaged in,
        proposed to engage in, or represented that the other person proposed
        to engage in, particular conduct; is a liability of the
        first-mentioned person in respect of the other person.

"(2) Subject to this section, an agreement is void in so far as it purports to
exclude, restrict or otherwise affect a liability of a person in respect of
another person, or to provide for a person to be indemnified in respect of a
liability of the person in respect of another person.

"(3) Subsection (2) does not apply in relation to an agreement in so far as
it:

   (a)  is a contract of insurance;

   (b)  provides for a representative of a person to indemnify the person in
        respect of a liability of the person in respect of the representative;
        or

   (c)  provides for a licensee from whom a person holds a proper authority to
        indemnify another such licensee in respect of a liability of the other
        licensee in respect of the person.

"(4) In paragraph (3) (c):
'licensee' includes a recognised licensee.

"(5) A person shall not make, offer to make, or invite another person to offer
to make, in relation to a liability of the first-mentioned person in respect
of a person, an agreement that is or would be void, in whole or in part, by
virtue of subsection (2). Effect of Division

"79F. (1) Where 2 or more persons are liable under this Division in respect of
the same conduct or the same loss or damage, they are so liable jointly and
severally.

"(2) Nothing in section 79A, 79B or 79C:

   (a)  affects a liability arising otherwise than by virtue of this Division;

   (b)  despite paragraph (a) of this subsection, entitles a person to be
        compensated more than once in respect of the same loss or damage; or

   (c)  makes a person guilty of an offence.

"Division 5 - Excluding persons from the futures industry Power to revoke,
without a hearing, licence held by natural person

"80A. The Commission may, by written order, revoke a licence held by a natural
person if the person:

   (a)  becomes an insolvent under administration;

   (b)  is convicted of serious fraud;

   (c)  becomes incapable, through mental or physical incapacity, of managing
        his or her affairs; or

   (d)  asks the Commission to revoke the licence. Power to revoke, without a
        hearing, licence held by body corporate

"80B. The Commission may, by written order, revoke a licence held by a body
corporate if:

   (a)  the body ceases to carry on business;

   (b)  the body becomes an externally-administered body corporate;

   (c)  the body asks the Commission to revoke the licence; or

   (d)  a director, secretary or executive officer of the body contravenes
        this Act because:

        (i)    he or she does not hold a licence; or

        (ii)   a licence he or she holds is suspended. Power to revoke licence
               after a hearing

"80C. (1) Subject to section 80P, the Commission may, by written order, revoke
a licence if:

   (a)  the application for the licence contained matter that was false in a
        material particular or materially misleading;

   (b)  there was an omission of material matter from the application for the
        licence;

   (c)  the licensee contravenes a futures law;

   (d)  the licensee contravenes a condition of the licence;

   (e)  the licensee is a natural person and the Commission has reason to
        believe that he or she is not of good fame and character;

   (f)  the licensee is a body corporate and the Commission is satisfied that
        the educational qualifications or experience of a person who:

        (i)    is an officer of the body; and

        (ii)   was not an officer of the body when the licence was granted;
               are or is inadequate having regard to the duties that the
               officer performs, or will perform, in connection with the
               holding of the licence;

   (g)  the licensee is a body corporate and the Commission is satisfied that:

        (i)    an officer of the body performs, or will perform, in connection
               with the holding of the licence, duties that are or include
               duties (in this paragraph called the 'different duties') other
               than those having regard to which the Commission was satisfied,
               before granting the licence, that the officer's educational
               qualifications and experience were adequate; and

        (ii)   the officer's educational qualifications or experience are or
               is inadequate having regard to the different duties;

   (h)  the licensee is a body corporate and:

        (i)    a licence held by a director, secretary or executive officer of
               the body is suspended or revoked; or

        (ii)   an order is made under section 80G against such a director,
               secretary or executive officer;

   (j)  the Commission has reason to believe that the licensee has not
        performed efficiently, honestly and fairly the duties of a holder of a
        futures broker's licence or a futures adviser's licence, as the case
        requires; or

   (k)  the Commission has reason to believe that the licensee will not
        perform those duties efficiently, honestly and fairly.

"(2) In determining whether or not it has reason to believe as mentioned in
paragraph (1) (e) or (k) in relation to a licensee, the Commission is not
precluded from having regard to a matter that arose before the time when the
licence was granted unless the Commission was aware of the matter at that
time. Power to suspend licence instead of revoking it

"80D. (1) Subject to section 80P, where:

   (a)  section 80A or 80B empowers the Commission to revoke a licence
        otherwise than because the licensee has asked for the revocation; or

   (b)  the Commission is empowered by virtue of paragraph 80C (1) (c), (d),
        (f), (g), (h), (j) or (k) to revoke a licence; the Commission may, if
        it considers it desirable to do so, instead:

   (c)  by written order, suspend the licence for a specified period; or

   (d)  by written order, prohibit the licensee, either permanently or for a
        specified period, from doing specified acts, being acts that
        section 61 or 63 would prohibit the licensee from doing if it did not
        hold the licence.

"(2) The Commission may at any time, by written order, vary or revoke an order
in force under this section.

"(3) For the purposes of sections 61, 63, 78A and 78B, a licensee or
recognised licensee shall be taken not to hold the licence or recognised
licence at any time during a period for which the licence or recognised
licence is suspended.

"(4) Where an order in force under this section prohibits a licensee as
mentioned in paragraph (1) (d):

   (a)  the licensee shall not contravene the order; and

   (b)  in relation to the doing by a person, as a representative of the
        licensee, of an act specified in the order, sections 78A and 78B
        apply, or apply during the period specified in the order, as the case
        requires, as if the licensee did not hold the licence.
Penalty: $2,500 or imprisonment for 6 months, or both.

"(5) Subsection (4) applies in relation to a person who holds a licence within
the meaning of a corresponding law of a participating State or participating
Territory and so applies as if:

   (a)  a reference in that subsection to a licensee were a reference to the
        person; and

   (b)  a reference in that subsection to this section or to paragraph (1) (d)
        were a reference to a provision of a law of that State or Territory
        that corresponds with this section or that paragraph, as the case may
        be.

"(6) The effect that subsection (4) has by virtue of subsection (5) is
additional to, and does not prejudice, the effect subsection (4) otherwise
has.

"(7) A reference in this Act (other than this section) to the Commission
suspending a licence includes a reference to the Commission making under
paragraph (1) (d) an order relating to the licence.

"(8) A reference in this Act to the Commission suspending a recognised licence
includes a reference to the Commission making under a provision of a law of a
participating State or participating Territory that corresponds with paragraph
(1) (d) an order relating to the recognised licence. Power to make banning
order where licence revoked or suspended

"80E. Subject to section 80P, where the Commission:

   (a)  revokes under section 80A;

   (b)  revokes by virtue of paragraph 80C (1) (a), (b), (c), (d), (j) or (k);

   (c)  revokes by virtue of paragraph 80C (1) (e);

   (d)  suspends by virtue of paragraph 80D (1) (a); or

   (e)  suspends by virtue of paragraph 80D (1) (b); a licence held by a
        natural person, it may also make a banning order against the person.
        Power to make banning order against unlicensed person

"80F. Subject to section 80P, the Commission may make a banning order against
a natural person (other than a licensee or recognised licensee) if:

   (a)  he or she becomes an insolvent under administration;

   (b)  he or she is convicted of serious fraud;

   (c)  he or she becomes incapable, through mental or physical incapacity, of
        managing his or her affairs;

   (d)  he or she contravenes a futures law;

   (e)  the Commission has reason to believe that he or she is not of good
        fame and character;

   (f)  the Commission has reason to believe that he or she has not performed
        efficiently, honestly and fairly the duties of:

        (i)    a representative of a futures broker; or

        (ii)   a representative of a futures adviser; or

   (g)  the Commission has reason to believe that he or she will not perform
        efficiently, honestly and fairly the duties of:

        (i)    a representative of a futures broker; or

        (ii)   a representative of a futures adviser. Nature of banning order

"80G. (1) Where this Division empowers the Commission to make a banning order
against a person, the Commission may, by written order, prohibit the person:

   (a)  in any case - permanently; or

   (b)  except where the Commission is empowered by virtue of paragraph 80E
        (c) or 80F (e) to make the order - for a specified period; from doing
        an act as:

   (c)  a representative of a futures broker;

   (d)  a representative of a futures adviser; or

   (e)  a representative of a futures broker or of a futures adviser;
        whichever the order specifies.

"(2) The Commission shall not vary or revoke a banning order except under
section 80H, 80J or 80K. Exceptions to banning order

"80H. (1) An order made against a person under subsection 80G (1) may include
a provision that permits the person, subject to such conditions (if any) as
are specified, to do, or to do in specified circumstances, specified acts that
the order would otherwise prohibit the person from doing.

"(2) Subject to section 80P, the Commission may, at any time, by written
order, vary a banning order against a person:

   (a)  by adding a provision that permits the person as mentioned in
        subsection (1);

   (b)  by varying such a provision in relation to conditions, circumstances
        or acts specified in the provision;

   (c)  by omitting such a provision and substituting another such provision;
        or

   (d)  by omitting such a provision. Variation or revocation of banning order
        on application

"80J. (1) Subject to sections 80K and 80P, this section has effect where a
person applies to the Commission to vary or revoke a banning order relating to
the person.

"(2) If:

   (a)  the person is not an insolvent under administration;

   (b)  the Commission has no reason to believe that the person is not of good
        fame and character; and

   (c)  the Commission has no reason to believe that the person will not
        perform efficiently, honestly and fairly the duties of:

        (i)    a representative of a futures broker; or

        (ii)   a representative of a futures adviser; the Commission shall, by
               written order:

   (d)  if only one of subparagraphs (c) (i) and (ii) applies - vary the
        banning order so that it no longer prohibits the person from doing an
        act as a representative of a futures broker or of a futures adviser,
        as the case may be; or

   (e)  otherwise - revoke the banning order.

"(3) Otherwise, the Commission shall refuse the application.

"(4) In determining whether or not it has reason to believe as mentioned in
paragraph (2) (b) or (c), the Commission shall have regard to any conviction
of the person, during the 10 years ending on the day of the application, of
serious fraud.

"(5) Nothing in subsection (4) limits the matters to which the Commission may
have regard:

   (a)  in deciding on the application; or

   (b)  in connection with performing or exercising any other function or
        power under this Part. Revocation of banning order in certain cases

"80K. Where:

   (a)  section 80J requires the Commission to vary a banning order so that it
        no longer has a particular operation; and

   (b)  the order has no other operation; the Commission shall, by written
        order, instead revoke the banning order. Effect and publication of
        orders under this Division

"80L. (1) An order by the Commission under this Division takes effect when
served on the person to whom the order relates.

"(2) As soon as practicable on or after the day on which an order by the
Commission under this Division takes effect, the Commission shall publish in
the Gazette a notice that sets out a copy of:

   (a)  if the order is made under section 80A, 80B, 80C, 80D or 80G or
        revokes a banning order - the first-mentioned order; or

   (b)  if the order varies a banning order - the banning order as in force
        immediately after the first-mentioned order takes effect; and states
        that the first-mentioned order, or the banning order as so in force,
        as the case may be, took effect on that day.

"(3) Where:

   (a)  but for this subsection, subsection (2) would require publication of a
        notice setting out a copy of a banning order as in force at a
        particular time;

   (b)  the banning order as so in force includes a provision that permits a
        person as mentioned in subsection 80H (1); and

   (c)  in the Commission's opinion, the notice would be unreasonably long if
        it set out a copy of the whole of that provision; the notice may,
        instead of setting out a copy of that provision, set out a summary of
        the provision's effect. Contravention of banning order

"80M. A person shall not contravene a banning order or recognised banning
order relating to the person.
Penalty: $2,500 or imprisonment for 6 months, or both. Banned person
ineligible for licence

"80N. The Commission shall not grant a futures broker's licence or a futures
adviser's licence to a person if a banning order or recognised banning order
prohibits the person (except as permitted by the order) from doing an act as a
representative of a futures broker, or of a futures adviser, as the case may
be. Opportunity for hearing

"80P. (1) The Commission shall not:

   (a)  refuse an application for a licence on the ground, or grounds
        including the ground, that paragraph 66 (2) (d), (e) or (f) or 66A (2)
        (d) or (e) does not apply in relation to the applicant;

   (b)  impose conditions on a licence;

   (c)  vary the conditions of a licence;

   (d)  revoke or suspend a licence otherwise than by virtue of section 80A or
        80B or paragraph 80D (1) (a);

   (e)  make, otherwise than by virtue of paragraph 80E (a) or (d) or 80F (a),
        (b) or (c), an order under section 80G against a person;

   (f)  make under subsection 80H (2) an order varying a banning order against
        a person; or

   (g)  refuse an application by a person under section 80J; unless the
        Commission complies with subsection (2) of this section.

"(2) The Commission shall give the applicant, licensee or person, as the case
may be, an opportunity:

   (a)  to appear at a hearing before the Commission that takes place in
        private; and

   (b)  to make submissions and give evidence to the Commission in relation to
        the matter. Disqualification by the Court

"80Q. (1) Where the Commission:

   (a)  revokes under section 80A or 80B or subsection 80C (1) a licence held
        by a person; or

   (b)  makes under section 80G against a person an order that is to operate
        otherwise than only for a specified period; the Commission may apply
        to the Court for an order or orders under this section in relation to
        the person.

"(2) On an application under subsection (1), the Court may make one or more of
the following:

   (a)  an order disqualifying the person, permanently or for a specified
        period, from holding:

        (i)    a futures broker's licence;

        (ii)   a futures adviser's licence; or

        (iii)  a futures broker's licence or a futures adviser's licence;
               whichever the order specifies;

   (b)  an order prohibiting the person, permanently or for a specified
        period, from doing an act as:

        (i)    a representative of a futures broker;

        (ii)   a representative of a futures adviser; or

        (iii)  a representative of a futures broker or of a futures adviser;
               whichever the order specifies;

   (c)  such other order as it thinks fit; or may refuse the application.

"(3) The Court may revoke or vary an order in force under this section. Effect
of order under section 80Q or corresponding law

"80R. (1) The Commission shall not grant a futures broker's licence or a
futures adviser's licence to a person whom an order disqualifies from holding
a futures broker's licence or a futures adviser's licence, as the case may be,
under this Part or the provisions of a law of a participating State or
participating Territory that correspond with this Part.

"(2) A person shall not contravene an order that prohibits the person from
doing an act as:

   (a)  a representative of a futures broker;

   (b)  a representative of a futures adviser; or

   (c)  a representative of a futures broker or of a futures adviser;
        whichever the order specifies.
Penalty: $2,500 or imprisonment for 6 months, or both.

"(3) In this section:
'order' means:

   (a)  an order in force under section 80Q or a provision of a law of a
        participating State or participating Territory that corresponds with
        that section; or

   (b)  an order as it has effect because of subsection 80S (2) or a provision
        of a law of a participating State or participating Territory that
        corresponds with that subsection. Effect of order under previous
        Territory law corresponding with section 80Q

"80S. (1) This section applies where, immediately before the commencement of
section 75 of the Co-operative Scheme Legislation Amendment Act 1989, a person
was disqualified, either permanently or for a period, because of an order that
was made under subsection 78 (4) of this Act as in force before that
commencement, from holding:

   (a)  a futures broker's licence;

   (b)  a futures adviser's licence;

   (c)  a futures broker's representative's licence; or

   (d)  a futures adviser's representative's licence.

"(2) As from that commencement, the order has effect for the purposes of this
Act as if it were an order in force under section 80Q:

   (a)  disqualifying the person, permanently or for that period, as the case
        may be, from holding:

        (i)    if paragraph (1) (a) applies - a futures broker's licence; or

        (ii)   if paragraph (1) (b) applies - a futures adviser's licence; or

   (b)  prohibiting the person, permanently or for that period, as the case
        may be, from doing an act as:

        (i)    if paragraph (1) (c) applies - a representative of a futures
               broker; or

        (ii)   if paragraph (1) (d) applies - a representative of a futures
               adviser; as the case requires.".