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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.12 - MISCELLANEOUS    View history reference

Division 2 - Other matters    View history reference

SECTION 1101B  POWER OF COURT TO MAKE CERTAIN ORDERS  

 View history reference

1101B(1)  Court's power to make orders in relation to certain contraventions.   


The Court may make such order, or orders, as it thinks fit if:


(a) on the application of ASIC, it appears to the Court that a person:

(i) has contravened a provision of this Chapter, or any other law relating to dealing in financial products or providing financial services; or

(ii) has contravened a condition of an Australian market licence, Australian CS facility licence, Australian derivative trade repository licence or Australian financial services licence; or

(iii) has contravened a provision of the operating rules, or the compensation rules (if any), of a licensed market or of the operating rules of a licensed CS facility; or

(iv) (Repealed)

(v) has contravened a condition on an exemption from the requirement to hold an Australian market licence or an Australian CS facility licence; or

(vi) is about to do an act with respect to dealing in financial products or providing a financial service that, if done, would be such a contravention; or
 View history reference


(b) on the application of a market licensee, it appears to the Court that a person has contravened the operating rules, or the compensation rules (if any), of a licensed market operated by the licensee; or


(c) on the application of a CS facility licensee, it appears to the Court that a person has contravened a provision of the operating rules of a licensed CS facility operated by the licensee; or


(d) on the application of a person aggrieved by an alleged contravention by another person of subsection 798H(1) (complying with market integrity rules) or a provision of the operating rules, or the compensation rules (if any), of a licensed market, it appears to the Court that:

(i) the other person did contravene the provision; and

(ii) the applicant is aggrieved by the contravention.
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However, the Court can only make such an order if the Court is satisfied that the order would not unfairly prejudice any person.

Note: For examples of orders the Court could make, see subsection (4).

[CCH Note: S 1101B(1) will be amended by No 25 of 2017, s 3, Sch 5[16], by inserting "or 981M(1) (complying with client money reporting rules)" after "subsection 798H(1) (complying with market integrity rules)" in para (d) (effective 4 April 2018).]

1101B(2)  

For the purposes of paragraph (1)(d), if a body corporate contravenes a provision of the operating rules of a licensed market, a person who holds financial products of the body corporate that are able to be traded on the licensed market is taken to be a person aggrieved by the contravention.

1101B(3)  

Subsection (2) does not limit the circumstances in which a person may be aggrieved by a contravention for the purposes of paragraph (1)(d).

1101B(4)  Examples of orders the Court may make.   


Without limiting subsection (1), some examples of orders the Court may make under subsection (1) include:


(a) an order restraining a person from carrying on a business, or doing an act or classes of acts, in relation to financial products or financial services, if the person has persistently contravened, or is continuing to contravene:

(i) a provision or provisions of this Chapter; or

(ii) a provision or provisions of any other law relating to dealing in financial products or providing financial services; or

(iii) a condition on an Australian market licence, Australian CS facility licence, Australian derivative trade repository licence or Australian financial services licence; or

(iv) (Repealed)

(v) a condition of an exemption from a requirement to hold an Australian market licence or Australian CS facility licence; or

(vi) a provision of the operating rules, or the compensation rules (if any), of a licensed market or of the operating rules of a licensed CS facility; or
 View history reference


(b) an order giving directions about complying with a provision of the market integrity rules, or of the derivative transaction rules or the derivative trade repository rules, or a provision of the operating rules, or the compensation rules (if any), of a licensed market or of the operating rules of a licensed CS facility to a person (or the directors of the body corporate, if the person is a body corporate) who contravened the provision; and
 View history reference


(c) an order requiring a person to disclose to the public or to specified persons, in accordance with the order, specified information that the person to whom the order is directed possesses or to which that person has access, if the person:

(i) contravened a provision of the market integrity rules, or of the derivative transaction rules or the derivative trade repository rules, or a provision of the operating rules of a licensed market or a condition relating to the disclosure or provision of information; or

(ii) was involved in such a contravention; and
 View history reference


(d) an order requiring a person to publish advertisements in accordance with the order at that person's expense, if the person:

(i) contravened a provision of the market integrity rules, or of the derivative transaction rules or the derivative trade repository rules, or a provision of the operating rules of a licensed market, or a condition relating to the disclosure or provision of information; or

(ii) was involved in such a contravention; and
 View history reference


(e) an order restraining a person from acquiring, disposing of or otherwise dealing with any financial products that are specified in the order; and


(f) an order restraining a person from providing any financial services that are specified in the order; and


(g) an order appointing a receiver of property (see subsection (9)) of a financial services licensee; and


(h) an order declaring a contract relating to financial products or financial services to be void or voidable; and


(i) an order directing a person to do or refrain from doing a specified act, if that order is for the purpose of securing compliance with any other order under this section; and


(j) any ancillary order considered to be just and reasonable in consequence of the making of an order under any of the preceding provisions of this subsection.

[CCH Note: S 1101B(4) will be amended by No 25 of 2017, s 3, Sch 5[17] and [18], by substituting "of the derivative transaction rules, of the derivative trade repository rules or of the client money reporting rules" for "or of the derivative transaction rules or the derivative trade repository rules" in para (b), (c)(i) and (d)(i) (effective 4 April 2018).]

1101B(5)  Interim orders.  


Before considering an application to the Court under subsection (1), the Court may make an interim order of the kind applied for to apply pending the determination of the application, if in the opinion of the Court it is desirable to do so.

1101B(6)  

However, if ASIC, a market licensee or a CS facility licensee applies for an order under subsection (1), the Court must not require the applicant, or any other person, to give any undertakings as to damages as a condition of making an interim order under subsection (5).

1101B(7)  Power to give notice of applications.   


Before making an order under subsection (1), the Court may do either or both of the following:


(a) direct that notice of the application be given to such persons as it thinks fit;


(b) direct that notice of the application be published in such manner as it thinks fit.

1101B(8)  Powers of receivers appointed under Court orders.   


A person appointed by order of the Court under subsection (1) as a receiver of the property (see subsection (12)) of a financial services licensee:


(a) may require the financial services licensee to:


(i) deliver to the person any property of which the person has been appointed receiver; or

(ii) give to the person all information concerning that property that may reasonably be required; and


(b) may acquire and take possession of any property of which the person has been appointed receiver; and


(c) may deal with any property that the person has acquired, or of which the person has taken possession, in any way in which the financial services licensee might lawfully have dealt with the property; and


(d) has such other powers in respect of the property as the Court specifies in the order.

[CCH Note: The next subsection is s 1101B(10).]

1101B(10)  Duty to comply with order.  


A person must not, without reasonable excuse, contravene:


(a) an order under this section; or


(b) a requirement imposed under paragraph (8)(a) or (8)(d) by a receiver appointed by order of the Court under subsection (1).

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

1101B(11)  Power to rescind or vary order.  


The Court may rescind or vary an order made by it under this section or suspend the operation of such an order.

1101B(12)  

In this section:

compensation rules has the same meaning as in Part 7.5.

property , in relation to a financial services licensee, includes:


(a) money; or


(b) financial products; or


(c) documents of title to financial products; or


(d) other property;

entrusted to, or received on behalf of, any other person by the financial services licensee or another person in the course of, or in connection with, a financial services business carried on by the financial services licensee.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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