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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 4 - Australian financial services licences    View history reference

Subdivision A - How to get a licence    View history reference

SECTION 913B  WHEN A LICENCE MAY BE GRANTED  

 View history reference

913B(1)  

ASIC must grant an applicant an Australian financial services licence if (and must not grant such a licence unless):


(a) the application was made in accordance with section 913A; and


(b) ASIC has no reason to believe that the applicant is likely to contravene the obligations that will apply under section 912A if the licence is granted; and
 View history reference


(c) the requirement in whichever of subsection (2) or (3) of this section applies is satisfied; and


(ca) the applicant has provided ASIC with any additional information requested by ASIC in relation to matters that, under this section, can be taken into account in deciding whether to grant the licence; and


(d) the applicant meets any other requirements prescribed by regulations made for the purposes of this paragraph.

Note 1: ASIC must not grant an Australian financial services licence to a person contrary to a banning order or disqualification order (see Division 8).

Note 2: There are limitations on ASIC granting an individual an Australian financial services licence that covers the provision of certain personal advice if the individual does not meet the education and training standards in subsections 921B(2) to (4) (see section 921C).

913B(2)  

If the applicant is a natural person, ASIC must be satisfied that there is no reason to believe that the applicant is not of good fame or character.

913B(3)  

If the applicant is not a single natural person, ASIC must be satisfied:


(a) that:


(i) if the applicant is a body corporate - there is no reason to believe that any of the applicant's responsible officers are not of good fame or character; or

(ii) if the applicant is a partnership or the trustees of a trust - there is no reason to believe that any of the partners or trustees who would perform duties in connection with the holding of the licence are not of good fame or character; or


(b) if ASIC is not satisfied of the matter in paragraph (a) - that the applicant's ability to provide the financial services covered by the licence would nevertheless not be significantly impaired.

913B(4)  

In considering whether there is reason to believe that a person is not of good fame or character, ASIC must (subject to Part VIIC of the Crimes Act 1914) have regard to:


(a) any conviction of the person, within 10 years before the application was made, for an offence that involves dishonesty and is punishable by imprisonment for at least 3 months; and
 View history reference


(b) whether the person has held an Australian financial services licence that was suspended or cancelled; and


(c) whether a banning order or disqualification order under Division 8 has previously been made against the person; and


(d) any other matter ASIC considers relevant.

Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.

913B(5)  

However, ASIC may only refuse to grant a licence after giving the applicant an opportunity:


(a) to appear, or be represented, at a hearing before ASIC that takes place in private; and


(b) to make submissions to ASIC in relation to the matter.


 



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