Persons acting in course of business of employers or principals

Heading: inserted, on 1 July 2010, by section 24 of the Financial Advisers Amendment Act 2010 (2010 No 40).

77U Who is responsible for broker obligations

(1)

If a broking service is provided by a person (A) on behalf of the business of another person (B), B (and not A) is treated as the broker having the broker obligations under this Act.

(2)

If B has a broker obligation under subsection (1)—

(a)

any act or omission by A is also treated as being done by B; and

(b)

if it is necessary to show the state of mind of B, it is sufficient to show that A had that state of mind.

(3)

Subsections (1) and (2) do not affect the liability of A or B under any other Act or rule of law for A’s actions.

Section 77U: inserted, on 1 July 2010, by section 24 of the Financial Advisers Amendment Act 2010 (2010 No 40).