The Corporations Law governs the licensing of securities exchanges,
securities offered for subscription and the conduct of securities
business. It aims to protect investors by requiring the disclosure of
material information about securities offered publicly.
In the context of securities business, investment advisers and securities dealers must be licensed and the Law imposes requirements about the way business is conducted, such as:
- how client money is treated
- disclosure of interests in securities
- suitability of securities recommendations
The Corporations Law also contains provisions dealing with practices such as short selling and prohibits market manipulation, fraudulent, artificial or fictitious trading and insider trading.