Part II Regulated And Prohibited Activities

Enforceability of agreements

26 Agreements made by unauthorised persons.

C11

An agreement made by a person in the course of carrying on a regulated activity in contravention of the general prohibition is unenforceable against the other party.

C12

The other party is entitled to recover—

a

any money or other property paid or transferred by him under the agreement; and

b

compensation for any loss sustained by him as a result of having parted with it.

3

“Agreement” means an agreement—

a

made after this section comes into force; and

b

the making or performance of which constitutes, or is part of, the regulated activity in question.

4

This section does not apply if the regulated activity is accepting deposits.