Securities and Futures Act 2001 · 2020 Revised Edition · Part 12 · Market Conduct
230. Unsolicited transactions by holder of capital markets services licence and representatives
Feedback & supportLast amended by an amending law of 2017. 2 amendments in all.
The holder of a capital markets services licence to deal in capital markets products, or a representative of such a holder, does not contravene section 218(2) or 219(2) by subscribing for, purchasing or selling, or entering into an agreement to subscribe for, purchase or sell, securities, securities‑based derivatives contracts or CIS units if —
capital markets services licence
“capital markets services licence” means a licence that is granted by the Authority under section 86 to a person to carry on a business in any regulated activity;
the holder or representative entered into the transaction or agreement concerned on behalf of another person (called in this section the principal) under a specific instruction by the principal to enter into that transaction or agreement which was not solicited by the holder or representative;
the holder or representative has not given any advice to the principal in relation to the transaction or agreement or otherwise sought to procure the principal’s instructions to enter into the transaction or agreement; and
the principal is not an associate of the holder or representative.
Nothing in this section affects the application of section 218(2) or 219(2) in relation to the principal.
principal
“principal”, in relation to a representative, means a person whom the representative is in the direct employment of, is acting for or is acting by arrangement with, and on behalf of whom the representative carries or will carry out any regulated activity;