132Dealings by employees of holders of licences

##### 132 Dealings by employees of holders of licences (1) A person who is a dealer or an investment adviser and an employee of that person shall not, as principals, jointly purchase or subscribe for, or agree to purchase or subscribe for, any securities. (2) A person who is a partner in a partnership that carries on a business of dealing in securities or a business of advising other persons concerning securities and an employee of the partnership shall not, as principals, jointly purchase or subscribe for, or agree to purchase or subscribe for, any securities. (3) A person who is a partner in a partnership that carries on a business in the course of which advice is given, or analyses or reports are issued or published, concerning securities and an employee of the partnership shall not, as principals, jointly purchase or subscribe for, or agree to purchase or subscribe for, any securities. (4) A person who is a dealer or an investment adviser shall not give credit to an employee of that person or to a person who, to the knowledge of the first‑mentioned person, is associated with such an employee if: (a) the credit is given for the purpose of enabling or assisting the person to whom the credit is given to purchase or subscribe for any securities; or (b) the person giving the credit knows or has reason to believe that the credit will be used for the purpose of purchasing or subscribing for securities. (5) A person who is a partner in a partnership that carries on a business of dealing in securities shall not give credit to an employee of the partnership or to a person who, to the knowledge of the first‑mentioned person, is associated with such an employee if: (a) the credit is given for the purpose of enabling or assisting the person to whom the credit is given to purchase or subscribe for any securities; or (b) the person giving the credit knows or has reason to believe that the credit will be used for the purpose of purchasing or subscribing for securities. (6) A person who is a partner in a partnership that carries on a business in the course of which advice is given, or analyses or reports are issued or published, concerning securities shall not give credit to an employee of the partnership or to a person who, to the knowledge of the first‑mentioned person, is associated with such an employee if: (a) the credit is given for the purpose of enabling or assisting the person to whom the credit is given to purchase or subscribe for any securities; or (b) the person giving the credit knows or has reason to believe that the credit will be used for the purpose of purchasing or subscribing for securities. (7) A person who is an employee of a sole trader or member firm in connection with a business of dealing in securities carried on by the sole trader or member firm shall not, as principal, purchase or agree to purchase any securities or rights or interests in securities unless the sole trader or member firm acts as the agent of the person in respect of the transaction. (8) The references in subsections (1) and (4) to an employee of a person who is a dealer or an investment adviser include, in the case of a body corporate that is a dealer or an investment adviser, references to an officer of the body corporate. (9) The reference in subsection (7) to an employee of a sole trader or member firm includes, in the case of a sole trader that is a body corporate or a member firm a partner in which is a body corporate, a reference to an officer of the body corporate. (10) The penalty for an offence against this section is a fine not exceeding $2,500 or imprisonment for a period not exceeding 6 months, or both.