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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.8 - OTHER PROVISIONS RELATING TO CONDUCT ETC. CONNECTED WITH FINANCIAL PRODUCTS AND FINANCIAL SERVICES, OTHER THAN FINANCIAL PRODUCT DISCLOSURE    View history reference

Division 4A - Special provisions relating to margin lending facilities    View history reference

Subdivision B - Notice of margin calls under margin lending facilities    View history reference

SECTION 985M  NOTIFICATION OF MARGIN CALLS  

 View history reference

985M(1)  Provider must notify retail client of margin call.  


A financial services licensee (the provider) that has issued a margin lending facility to a retail client must, when the facility goes into margin call, take reasonable steps to notify the retail client under the facility of the margin call in accordance with this section.

Note: This subsection is a civil penalty provision (see section 1317E).

985M(2)  When provider must notify retail client's agent, and agent must notify retail client, of margin call.  


However, if there is an agreement between the provider, the retail client, and another financial services licensee (the agent) that the agent will receive communications from the provider in relation to the margin lending facility on behalf of the retail client, then:


(a) the provider must take reasonable steps to notify the agent (instead of the retail client) of the margin call in accordance with this section; and


(b) the agent must take reasonable steps to notify the retail client of the margin call in accordance with this section.

Note: This subsection is a civil penalty provision (see section 1317E).

985M(3)  When and how notice must be given.  


A notice under this section must be given:


(a) at a time determined by ASIC; or


(b) if no time is determined by ASIC - as soon as practicable.

985M(4)  [How notice must be given]  


A notice under this section must be given:


(a) if a manner in which the notice is to be given has been agreed between the person who is required to give the notice and the person to whom the notice is required to be given - in that manner; or


(b) if there is no agreement and ASIC has determined the manner in which the notice is to be given - in that manner; or


(c) otherwise - in a reasonable manner.

985M(5)  ASIC may determine when and how notice must be given.  


ASIC may determine:


(a) the time by which, and manner in which, a provider must notify a client or agent of a margin call under this section; and


(b) the time by which, and manner in which, an agent must notify a client of a margin call under this section.

985M(6)  [Form and nature of determinations]  


A determination made under subsection (5):


(a) must be in writing; and


(b) is a legislative instrument for the purposes of the Legislative Instruments Act 2003.


 



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