Part II Regulated And Prohibited Activities

Enforceability of agreements

27 Agreements made through unauthorised persons.

(1)

An agreement made by an authorised person (“the provider”)—

(a)

in the course of carrying on a regulated activity (not in contravention of the general prohibition), but

(b)

in consequence of something said or done by another person (“the third party”) in the course of a regulated activity carried on by the third party in contravention of the general prohibition,

is unenforceable against the other party.

(2)

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 carried on by the provider.

(4)

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