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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 8B - Compliance schemes    View history reference

Subdivision C - Investigations by monitoring body    View history reference

SECTION 921L  INVESTIGATIONS BY MONITORING BODY  

 View history reference

Investigation into failure, or possible failure, to comply with Code of Ethics

921L(1)  

The monitoring body for a compliance scheme must determine, in writing, whether a relevant provider covered by the scheme has failed to comply with the Code of Ethics if the monitoring body becomes aware of the failure, or possible failure, by the relevant provider to comply with the Code of Ethics.

Notifying relevant provider of investigation

921L(2)  

Within a reasonable period of becoming so aware, the monitoring body must notify the relevant provider that the monitoring body:


(a) has become so aware; and


(b) is to make a determination under subsection (1).

Note: A monitoring body that fails to comply with this subsection may commit an offence (see subsection 921M(1)).

Request for information

921L(3)  

After becoming so aware, the monitoring body may request, in writing, any one or more of the following persons to provide information, documents or any other reasonable assistance to the monitoring body, within a reasonable specified period:


(a) if the relevant provider is a financial services licensee - the licensee;


(b) if the relevant provider is not a financial services licensee:


(i) the relevant provider; or

(ii) the financial services licensee on whose behalf the relevant provider is authorised to provide personal advice to retail clients in relation to relevant financial products; or

(iii) if the relevant provider is a relevant provider as a result of section 916B - the authorised representative who authorised the relevant provider under that section.

Note: A person who fails to comply with a request under this subsection may commit an offence (see subsection 921M(2)).

Restriction on relevant provider leaving compliance scheme

921L(4)  

The relevant provider must not cause a notice to be lodged under section 922H stating that another compliance scheme is to cover the relevant provider before the monitoring body has made a determination under subsection (1).

Note: A relevant provider who fails to comply with this subsection may commit an offence (see subsection 921M(3)).

Completion of investigation

921L(5)  

The monitoring body must make the determination:


(a) if the relevant provider notifies the monitoring body that the relevant provider intends to cause a notice to be lodged under section 922H stating that another compliance scheme is to cover the relevant provider - within 160 days of receiving the notice; or


(b) otherwise - within a reasonable period of becoming aware of the failure, or possible failure, by the relevant provider to comply with the Code of Ethics.

Note: A monitoring body that fails to comply with this subsection may commit an offence (see subsection 921M(1)).

Determination by monitoring body not a legislative instrument

921L(6)  

The determination is not a legislative instrument.

Offence

921L(7)  

A person commits an offence if:


(a) the person is a monitoring body for a compliance scheme; and


(b) information is disclosed to the person in accordance with subsection 70-40(3AA) of the Tax Agent Services Act 2009; and


(c) the person uses or discloses the information for a purpose other than monitoring or enforcing compliance with the Code of Ethics under the scheme.

Penalty: 10 penalty units.


 



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