CORPORATIONS ACT 2001
Ch 7 inserted by No 122 of 2001, s 3, Sch 1, Pt 1 (effective 11 March 2002).
As Act No 122 of 2001 repealed Ch 7 and 8 the history notes for Ch 7 use "inserted" and references to the former provisions have been removed.
A CS facility licensee must:
(aa) to the extent that it is reasonably practicable to do so:
(i) comply with standards determined under section 827D; and
(ii) do all other things necessary to reduce systemic risk; and
(a) to the extent that it is reasonably practicable to do so, do all things necessary to ensure that the facility's services are provided in a fair and effective way; and
(b) comply with the conditions on the licence; and
(c) have adequate arrangements (whether they involve a self-regulatory structure or the appointment of an independent person or related entity) for supervising the facility, including arrangements for:
(i) handling conflicts between the commercial interests of the licensee and the need for the licensee to ensure that the facility's services are provided in a fair and effective way; and
(ii) enforcing compliance with the facility's operating rules; and
(d) have sufficient resources (including financial, technological and human resources) to operate the facility properly and for the required supervisory arrangements to be provided; and
(e) if the licensee is a foreign body corporate - be registered under Division 2 of Part 5B.2; and
(f) if the licence was granted under subsection 824B(2) (overseas clearing and settlement facilities) - both:
(i) remain authorised to operate a clearing and settlement facility in the foreign country in which the licensee's principal place of business is located; and
(ii) get the Minister's approval under section 821F before that principal place of business becomes located in any other foreign country; and
(g) if the licensee, or a holding company of the licensee, is a widely held market body (within the meaning of Division 1 of Part 7.4) - take all reasonable steps to ensure that an unacceptable control situation (within the meaning of that Division) does not exist in relation to the body; and
(h) take all reasonable steps to ensure that no disqualified individual becomes, or remains, involved in the licensee (see Division 2 of Part 7.4).
S 821A inserted by No 122 of 2001, s 3, Sch 1, Pt 1 (effective 11 March 2002).