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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.2 - LICENSING OF FINANCIAL MARKETS    View history reference

Division 5 - Other matters    View history reference

SECTION 798DA  MARKET LICENSEE, RELATED BODY CORPORATE ETC. OR COMPETITOR PARTICIPATING IN MARKET  

 View history reference

798DA(1)  [ Application]  


This section applies if any of the following is a participant (the participant ) in a market:


(a) the market licensee;


(b) a related body corporate of the market licensee;


(c) a partnership if a partner in the partnership is a related entity of the market licensee;


(d) an entity if:


(i) the entity conducts, or participates in, a business that is in competition with a business conducted by the market licensee, or by a related body corporate of the market licensee; and

(ii) the entity requests that ASIC make decisions and take action in relation to the matters referred to in subsection (2).

798DA(2)  [ Regulation of participant]  


Before, and at all times while, the participant is participating in the market, the market ' s operating rules must provide for ASIC, instead of the market licensee, to make decisions and to take action (or to require the market licensee to take action on ASIC ' s behalf) in relation to these matters, and matters related to these matters:


(a) the admission of the participant to the market; and


(b) the expulsion and suspension of the participant from the market; and


(c) the disciplining of the participant; and


(d) the participant ' s compliance with the operating rules or this Act, including:


(i) the method of determining whether the participant has complied with those rules or this Act; and

(ii) any action (including the imposition of a fine or penalty) to be taken in respect of contraventions of those rules or this Act.

Note: For fees in respect of ASIC performing this function, see Part 9.10 .

798DA(3)  [ Powers and functions of ASIC]  


ASIC has the powers and functions that are provided for it in any operating rules made for the purposes of this section.

798DA(4)  [ Prohibition on market licensee]  


A participant referred to in subsection (1) must not participate in the market licensee ' s market otherwise than as allowed by this section.

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

798DA(5)  [ Limitation on application]  


This section does not apply if the licence of the market licensee was granted under subsection 795B(2) (overseas markets). Instead, the law of the country in which the market licensee ' s principal place of business is located applies for all purposes connected with the participation of the participant in the market.

798DA(6)  [ Prohibition on participation in own market]  


To avoid doubt, subsection (1) does not authorise a market licensee to participate in its own market.


 



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