Clause 33

A dealer shall not, as principal, deal in any securities with a person who is not the holder of a dealer’s licence unless he first informs the person with whom he is dealing that he is acting in the transaction as principal and not as agent.

For the purposes of subsection (1) dealings as principal include dealings on behalf of a corporation in which the dealer has and, where the dealer carries on the business of dealing in partnership, the dealer and his partners together have and where the dealer carries on business as a member company the dealer and the other directors of that company together have, a controlling interest.

Where a dealer has failed to comply with subsection (1) in respect of a contract for the sale of securities by him, the purchaser of the securities may, if he has not disposed of them, rescind the contract by a notice of rescission, in writing, given to the dealer within seven days after the receipt of the contract note and, where a dealer has failed to comply with that subsection in respect of a contract for the purchase of securities by him, the vendor of the securities may, in the like manner, rescind the contract.