Clause 7

by deleting subsection (1) and substituting the following subsections:“(1) A licensed financial adviser shall not make a false or misleading statement —

as to any amount that would be payable in respect of a proposed contract in respect of any investment product;

as to the effect of any provision of a contract or a proposed contract in respect of any investment product; or

in connection with the provision of any financial advisory service,if, when he makes the statement —

he does not care whether the statement is true or false; or

he knows or ought reasonably to have known that the statement is false or misleading.(1A) A licensed financial adviser shall not, in connection with the provision of any financial advisory service —

employ any device, scheme or artifice to defraud; or

engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person.(1B) Where, on or after the date of commencement of section 7(a) of the Financial Advisers (Amendment) Act 2012 —

a licensed financial adviser makes a false or misleading statement referred to in subsection (1) and thereby contravenes that subsection;

a person, in reliance on that statement, does, or refrains from doing, a particular act;

it is reasonable, having regard to that statement and all other relevant circumstances, for that person to do, or refrain from doing, as the case may be, that act, in reliance on that statement; and

that person suffers any loss or damage as a result of doing, or refraining from doing, as the case may be, that act,then, without prejudice to any other remedy available to that person, the licensed financial adviser is liable to pay damages to that person in respect of that loss or damage.(1C) Where, on or after the date of commencement of section 7(a) of the Financial Advisers (Amendment) Act 2012 —

a licensed financial adviser contravenes subsection (1A);

a person does, or refrains from doing, a particular act as a result of that contravention;

it is reasonable, having regard to that contravention and all other relevant circumstances, for that person to do, or refrain from doing, as the case may be, that act as a result of that contravention; and

that person suffers any loss or damage as a result of doing, or refraining from doing, as the case may be, that act,then, without prejudice to any other remedy available to that person, the licensed financial adviser is liable to pay damages to that person in respect of that loss or damage.”;

by inserting, immediately after the words “making of a” in subsection (2), the words “false or”;

by inserting, immediately after the words “subsection (1)” in subsection (3), the words “or (1A)”; and

by deleting the word “Statements” in the section heading and substituting the words “False or misleading statements, etc.,”.