Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This Division applies to any conduct of a representative of a financial services licensee:
(a) that relates to the provision of a financial service; and
(b) on which a third person (the client ) could reasonably be expected to rely; and
(c) on which the client in fact relied in good faith.
(2) In this Division, a reference to a representative's conduct being within authority in relation to a particular financial services licensee is, subject to subsection (3), a reference to:
(a) if the representative is an employee of the licensee or of a related body corporate of the licensee--conduct being within the scope of the employee's employment; or
(b) if the representative is a director of the licensee or of a related body corporate of the licensee--conduct being within the scope of the director's duties as director; or
(c) in any other case--conduct being within the scope of the authority given by the licensee.
(3) If:
(a) a person is the representative of more than one financial services licensee in respect of a particular class of financial service; and
(b) the person engages in conduct relating to that class of service; and
(ba) the conduct relates to a particular kind of financial product prescribed by regulations made for the purposes of paragraph 917C(3)(ba); and
(c) any one or more of the licensees issues or transfers a financial product of that kind as a result of the conduct;
then, for the purposes of this Division:
(d) the person is taken, in respect of the conduct, to have acted within authority in relation to the licensee or to each licensee who issued or transferred a financial product of that kind as a result of the conduct; and
(e) the person is, in respect of the conduct, taken not to have acted within authority in relation to any licensee who did not issue or transfer a financial product of that kind as a result of the conduct.