23 Unsubstantiated representations

(1)

A person must not, in trade, make an unsubstantiated representation.

(2)

A representation is unsubstantiated if the person making the representation does not, when the representation is made, have reasonable grounds for the representation, irrespective of whether the representation is false or misleading.

(3)

This section does not apply to a representation that a reasonable person would not expect to be substantiated.

(4)

In this section and sections 24 to 27, representation means a representation that is made—

(a)

in respect of financial products or financial services; and

(b)

in connection with—

(i)

any dealing in financial products; or

(ii)

the supply or possible supply of financial services or the promotion by any means of the supply or use of financial services.