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srilawsby aturio
As enacted
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Part III · Issue of Securities

112. Duty in making recommendations

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

A market intermediary or a registered person shall not make a recommendation with respect to any securities to a client where such client may reasonably be expected to rely on the recommendation, if the market intermediary or registered person does not have a reasonable basis for making the recommendation to the client.

(2)

For the purposes of subsection (1), a market intermediary or registered person does not have a reasonable basis for making a recommendation to a client unless–

(a)

he has, for the purposes of ascertaining that the recommendation is appropriate, having regard to the information possessed by him concerning the investment objectives, financial situation and particular needs of the client, given such consideration to, and conducted such analysis or investigation of the subject matter of the recommendation as is reasonable in all the circumstances; and

(b)

he has based the recommendation on the consideration, analysis or investigation referred to in paragraph (a).

Read on from s 113

Part IV

Trade In Unlisted Securities

Read on from Part IV

Part V

Market Misconduct

Read on from Part V

Part VI

Finance

Read on from Part VI

Part VII

General

Read on from Part VII