64Issue of contract notes

##### 64 Issue of contract notes (1A) This section applies: (a) in relation to a dealer (other than an exempt dealer) in relation to a transaction of sale or purchase of securities; or (b) in relation to an exempt dealer, in relation to a transaction of sale or purchase of securities that is entered into in the course of a securities business that the exempt dealer carries on in a capacity of personal representative of a dead dealer. (1) A dealer shall, in respect of a transaction of sale or purchase of securities, forthwith give a contract note that complies with subsection (2) to: (a) where the transaction took place in the ordinary course of business at a stock market and the dealer entered into the transaction otherwise than as principal—the person for whom the dealer entered into the transaction; (b) where the transaction did not take place in the ordinary course of business at a stock market and the dealer entered into the transaction otherwise than as principal—the person for whom the dealer entered into the transaction and the person with whom the dealer entered into the transaction; and (c) where the transaction did not take place in the ordinary course of business at a stock market and the dealer entered into the transaction as principal—the person with whom the dealer entered into the transaction. (2) A contract note given by a dealer under subsection (1) shall include: (a) the name or style under which the dealer carries on his business as a dealer and the address of the principal place at which he so carries on business; (b) where the dealer is dealing as principal with a person who is not the holder of a dealers licence, a statement that he is so acting; (c) the name of the person to whom the dealer gives the contract note; (d) the day on which the transaction took place and, if the transaction did not take place in the ordinary course of business at a stock market, a statement to that effect; (e) the number, or amount and description, of the securities that are the subject of the contract; (f) the price per unit of the securities; (g) the amount of the consideration; (h) a statement: (i) where he is a member of a securities exchange, or of a securities exchange within the meaning of the corresponding law of a participating State or of a participating Territory—specifying that securities exchange or each of those securities exchanges; and (ii) specifying the amount of commission charged and the rate (if any) at which the commission was charged; (j) the amounts of all stamp duties or other duties and taxes payable in connection with the contract; and (k) if an amount is to be added to or deducted from the settlement amount in respect of the right to a benefit purchased or sold together with the securities, the first‑mentioned amount and the nature of the benefit. (3) A dealer shall not include in a contract note given under subsection (1), as the name of the person with or for whom he has entered into the transaction, a name that he knows, or could reasonably be expected to know, is not the name by which that person is ordinarily known. (4) A reference in this section to a dealer dealing, or entering into a transaction, as principal includes a reference to a person: (a) dealing or entering into a transaction on behalf of a person associated with him; (b) dealing in securities on behalf of a body corporate in which he has a controlling interest; or (c) where he carries on business as a dealer in partnership—dealing in securities on behalf of a body corporate in which his interest and the interests of his partners together constitute a controlling interest. (5) For the purposes of this section: (a) a dealer who is a member of a securities exchange or is a member of a body corporate that is a securities exchange for the purposes of the corresponding law of a State or of another Territory shall not be taken to have entered into a transaction as principal by reason only that the transaction was entered into with another dealer who is a member of a securities exchange or is a member of a body corporate that is a securities exchange for the purposes of such a corresponding law; and (b) a transaction takes place in the ordinary course of business at a stock market if it takes place in prescribed circumstances or is a transaction that is a prescribed transaction for the purposes of this section. (6) Notwithstanding the provisions of section 6, a person is not associated with another person for the purposes of this section by reason only that he is: (a) a partner of the other person otherwise than by reason that he carries on a business of dealing in securities in partnership with the other person; or (b) a director of a body corporate of which the other person is also a director, whether or not the body corporate carries on a business of dealing in securities.