Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 3 - Approved compensation arrangements  

Subdivision D - Are compensation arrangements adequate?  

SECTION 885B   REQUIREMENTS TO BE COMPLIED WITH FOR ARRANGEMENTS TO BE ADEQUATE  

885B(1)   [ Adequate arrangements]  

The arrangements are adequate if, and only if, the Minister is satisfied that:


(a) the compensation rules provide adequate coverage for Division 3 losses (see sections 885C and 885D ); and


(b) the compensation rules provide for adequate compensation to be paid in respect of Division 3 losses (see section 885E ); and


(c) the compensation rules deal adequately with how compensation in respect of Division 3 losses is to be paid (see section 885F ); and


(d) the compensation rules deal adequately with the making and determination of claims in respect of Division 3 losses, and with the notification of the outcome of such claims (see section 885G ); and


(e) the arrangements provide for an adequate source of funds for paying compensation in respect of Division 3 losses and in respect of any other losses covered by the arrangements (see section 885H ); and


(f) the arrangements include adequate arrangements for administration and monitoring (see section 885I ); and


(g) under the arrangements, potential claimants have reasonable and timely access to the compensation regime; and


(h) if the licensee ceases (for whatever reason) to be required to have Division 3 arrangements, the rights of people to seek compensation under the arrangements, being rights that accrued while the licensee was required to have such arrangements, will be adequately protected.

885B(2)   [ Relevant matters]  

In considering the matters mentioned in subsection (1), the Minister must also have regard to the matters mentioned in section 885J .

885B(3)   [ Limitation]  

The matters that may be dealt with in compensation rules are not limited to matters mentioned in this section.


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