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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS    View history reference

Division 3 - Approved compensation arrangements    View history reference

Subdivision A - Approval of compensation arrangements    View history reference

SECTION 882B  HOW TO GET COMPENSATION ARRANGEMENTS APPROVED AFTER LICENCE IS GRANTED  

 View history reference

882B(1)  [Application for approval of compensation arrangements]  


If the operator of a licensed market wants to have compensation arrangements for the market approved after the licence has been granted, the operator must apply for approval in accordance with this section.

882B(2)  [Proposed compensation arrangements]  


The application must:


(a) contain the information, in relation to the proposed compensation arrangements, required by regulations made for the purposes of this paragraph and be accompanied by a copy of the proposed compensation rules; and


(b) be made to the Minister by lodging the application with ASIC.

Note: For fees in respect of lodging applications, see Part 9.10.

882B(3)  [Rejection of application]  


If the Minister does not consider that the proposed compensation arrangements are adequate, the application for approval must be rejected.

882B(4)  [Power to approve compensation arrangements]  


If the Minister considers that the proposed compensation arrangements are adequate, the Minister must:


(a) approve the compensation arrangements in writing; and


(b) vary the conditions of the operator's licence so as to:


(i) deal with the minimum amount of cover required in relation to the compensation arrangements in such manner as the Minister thinks appropriate; and

(ii) identify the source of funds available to cover claims, on the basis of which the Minister approves the arrangements (see section 885H).

882B(5)  [Variation of licence conditions]  


In varying licence conditions as mentioned in paragraph (4)(b), the Minister must proceed under section 796A as though the licensee had applied for the variation to be made.


 



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