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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES    View history reference

Division 2 - Regulation of CS facility licensees    View history reference

Subdivision C - Powers of the Minister, ASIC and the Reserve Bank in relation to licensees    View history reference

SECTION 823E  DIRECTIONS POWER - REDUCTION OF SYSTEMIC RISK  

 View history reference

823E(1)  [Direction to reduce systemic risk]  


If ASIC considers that a CS facility licensee has not done all things reasonably practicable to reduce systemic risk in the provision of the facility's services, ASIC may give the licensee a direction, in writing, to take:


(a) specified measures to comply with the whole or a part of a standard determined under section 827D; or


(b) any other action that ASIC considers will reduce systemic risk in the provision of the facility's services.

823E(2)  [Period of compliance]  


The direction may deal with the time by which, or period during which, it is to be complied with. The time or period must be reasonable.

823E(3)  [Compliance]  


The licensee must comply with the direction.

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

823E(3A)  [Failure to comply]  


If the licensee fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that the licensee comply with the direction.

823E(4)  [Variation of direction]  


ASIC may vary the direction by giving written notice to the licensee.

823E(5)  [Duration of direction]  


The direction has effect until ASIC revokes it by giving written notice to the licensee.

823E(6)  [Revocation of direction]  


ASIC may revoke the direction if, at the time of revocation, it considers that the direction is no longer necessary or appropriate.

823E(7)  [Consultation with RBA]  


Before giving, varying or revoking the direction, ASIC must consult the Reserve Bank of Australia. However, a failure to consult the Reserve Bank of Australia does not invalidate the direction, variation or revocation.

823E(8)  [Request of direction by RBA]  


The Reserve Bank of Australia may at any time request ASIC to make a direction under this section. However, ASIC is not required to comply with the request.


 



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