Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 2 - When there must be a compensation regime  

SECTION 881B   ADDITIONAL REQUIREMENTS FOR THE LICENCE APPLICATION  

881B(1)   [ Market licence application]  

A person who is applying for an Australian market licence must state in their application:

(a) whether any of the participants in the market, in effecting transactions through the market, will provide financial services for persons as retail clients; and

(b) if any participants will so provide financial services to persons as retail clients - whether, in connection with the provision of those financial services, those persons will or may give money or other property, or authority over property, to those participants.

881B(2)   [ Proposed compensation arrangements]  

If:

(a) participants in the market will provide financial services to persons as retail clients as mentioned in paragraph (1)(a); and

(b) in connection with the provision of those financial services, those persons will or may give money or property, or authority over property, to those participants;

the application must:

(c) contain the information, in relation to the proposed compensation arrangements, required by regulations made for the purposes of this paragraph and be accompanied by a copy of the proposed compensation rules; or

(d) state that the market is or will be covered by Division 4 , and set out evidence, in accordance with the requirements (if any) of the regulations, in support of that statement.