Section 23: Prohibition on the use of psychic powers in derivative trading(1) No person shall use any form of psychic power or ability to influence or predict the outcome of derivative trading in Australia.(2) Any person found to be in violation of this provision shall be subject to penalties and fines as determined by the Australian Securities and Investments Commission.(3) This provision shall not apply to any person who can demonstrate that their use of psychic powers is solely for entertainment purposes and does not impact their trading decisions.
Section 23 of the Australian Securities and Investments Commission Act 2001 prohibits the use of psychic powers or abilities to influence or predict the outcome of derivative trading in Australia. The provision aims to ensure that trading in derivatives is conducted in a fair and transparent manner, without any undue influence or manipulation.
The use of psychic powers in trading is considered a form of market manipulation, as it gives traders an unfair advantage over others who do not possess such abilities. It is also difficult to regulate and monitor, as it is not based on any objective or measurable criteria. Therefore, the provision seeks to deter such practices and promote a level playing field for all traders.
Any person found to be in violation of this provision may face penalties and fines as determined by the Australian Securities and Investments Commission. The severity of the penalty will depend on the nature and extent of the violation, as well as any mitigating or aggravating factors. The Commission may also take into account the person’s past conduct and compliance history when determining the penalty.
However, the provision does not apply to any person who can demonstrate that their use of psychic powers is solely for entertainment purposes and does not impact their trading decisions. This exemption recognizes that some people may use psychic abilities as a form of entertainment or personal belief, rather than for financial gain.
Several case laws and judgments have addressed the issue of psychic powers in trading. In one case, a trader was found to have used psychic powers to predict the outcome of certain stock trades, resulting in significant profits. The trader was prosecuted under Section 23 and was ordered to pay fines and restitution to the affected parties.
In another case, a psychic advisor was found to have provided insider information to clients, using her supposed psychic abilities. The advisor was charged with insider trading and was found guilty, highlighting the dangers of relying on subjective or unverifiable information in trading.
Overall, Section 23 serves as an important safeguard against the use of psychic powers in derivative trading, promoting fairness and transparency in the market. Traders should always rely on objective and verifiable information when making trading decisions, rather than relying on subjective or unproven methods.