A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES    View history reference

Division 3 - Obligations of financial services licensees    View history reference

SECTION 912D  OBLIGATION TO NOTIFY ASIC OF CERTAIN MATTERS  

 View history reference

912D(1)  [Breach of obligations]  

 View history reference

A financial services licensee must comply with subsection (1B) if:


(a) the licensee breaches, or is likely to breach:

(i) any of the obligations under section 912A or 912B, other than the obligation under paragraph 912A(1)(c); or

(ii) the obligation under paragraph 912A(1)(c), so far as it relates to provisions of this Act or the ASIC Act referred to in paragraphs (a), (b) and (c) of the definition of financial services law in section 761A; or

(iii) in relation to financial services, other than traditional trustee company services provided by a licensed trustee company - the obligation under paragraph 912A(1)(c), so far as it relates to Commonwealth legislation that is covered by paragraph (d) of that definition and that is specified in regulations made for the purposes of this subparagraph; or

(iv) in relation to traditional trustee company services provided by a licensed trustee company - the obligation under paragraph 912A(1)(c), so far as it relates to Commonwealth, State or Territory legislation, or a rule of common law or equity, that is covered by paragraph (d) or (e) of that definition; and
 View history reference


(b) the breach, or likely breach, is significant, having regard to the following:

(i) the number or frequency of similar previous breaches;

(ii) the impact of the breach or likely breach on the licensee's ability to provide the financial services covered by the licence;

(iii) the extent to which the breach or likely breach indicates that the licensee's arrangements to ensure compliance with those obligations is inadequate;

(iv) the actual or potential financial loss to clients of the licensee, or the licensee itself, arising from the breach or likely breach;

(v) any other matters prescribed by regulations made for the purposes of this paragraph.
 View history reference

912D(1A)  ["likely to breach"]  

 View history reference

For the purposes of subsection (1), a financial services licensee is likely to breach an obligation referred to in that subsection if, and only if, the person is no longer able to comply with the obligation.

912D(1B)  [Report of breach]  

 View history reference

The financial services licensee must, as soon as practicable and in any case within 10 business days after becoming aware of the breach or likely breach mentioned in subsection (1), lodge a written report on the matter with ASIC.

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

912D(1C)  [Lodgment of report]  

 View history reference

A report that a licensee is required to lodge under subsection (1B) is taken to have been lodged with ASIC if:


(a) the licensee is a body regulated by APRA; and


(b) the report is received by APRA in accordance with the terms of an agreement between APRA and ASIC under which APRA is to act as ASIC's agent in relation to such reports.

912D(1D)  [Application]  

 View history reference

Subsection (1B) does not apply to a financial services licensee that is a body regulated by APRA in relation to a breach if:


(a) the auditor or actuary of the licensee gives APRA a written report about the breach; and


(b) the report is given before, or within 10 business days after, the licensee becomes aware of the breach.

912D(2)  [Licensed market or CS facility]  


A financial services licensee must give written notice to ASIC, as soon as practicable, if the licensee becomes a participant in a licensed market or a licensed CS facility, or ceases to be such a participant. The notice must say when this happened and identify the market or facility.

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


 



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