CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 7 - SECURITIES
PART 7.3 - PARTICIPANTS IN THE SECURITIES INDUSTRY
Division 1 - Dealers and investment advisers and operators of managed investment schemes
History
Div heading amended by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).
SECTION 784
GRANT OF LICENCE TO BODY CORPORATE
784(1)
[Section applies to body corporate]
This section has effect where a body corporate applies for a licence.
784(2)
[Conditions for grant of licence]
The Commission shall grant the licence if:
(a)
the application was made in accordance with section
782;
(b)
the applicant is not an externally-administered body corporate;
(c)
the Commission is satisfied that the educational qualifications and experience of each responsible officer of the applicant are adequate having regard to the duties that the officer would perform in connection with the holding of the licence; and
(d)
the Commission has no reason to believe that the applicant will not perform efficiently, honestly and fairly the duties of a holder of a licence of the kind applied for; and
(e)
if the licence applied for is a licence to operate a managed investment scheme or schemes, the applicant meets the requirements of subsection
(2A), and any additional requirements determined by ASIC under subsection
(2B).
History
S 784(2) amended by No 61 of 1998, Sch 2, Pt 1 (effective 1 July 1998).
784(2A)
[Calculation of net tangible assets]
For the purpose of paragraph
(2)(e), ASIC must be satisfied that the value of the net tangible assets of the applicant is and will be maintained at a minimum of $50,000 or, where the value of all scheme property is greater than $10,000,000, an amount equal to 0.5% of those assets shown in the latest accounts of the scheme lodged with ASIC, up to a maximum of $5,000,000.
History
S 784(2A) inserted by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).
784(2B)
[Additional requirements]
ASIC may determine additional requirements for the purpose of paragraph (2)(e), including, but not limited to, a requirement that scheme property be held by an agent in particular circumstances.
History
S 784(2B) inserted by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).
784(2C)
[Meaning of net tangible assets]
In this section:
net tangible assets
means the total tangible assets of the
applicant, including any guarantee approved by ASIC, less any adjusted
liabilities as shown in the latest accounts of the applicant lodged
with ASIC.
History
S 784(2C) inserted by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).
784(2D)
[Exemption by ASIC]
ASIC, or a member of ASIC, may exempt an applicant from the requirements of subsection
(2A). This power may not be delegated. ASIC is to provide details of any exemptions granted under this section in its annual report.
History
S 784(2D) inserted by No 62 of 1998, Sch 2, Pt 1 (effective 1 July 1998).
784(3)
[Refusal by Commission]
Otherwise, the Commission shall refuse the application.
784(4)
[Matters for the Commission to consider]
In determining whether or not it has reason to believe as mentioned in paragraph
(2)(d), the Commission shall have regard, in relation to each responsible officer of the applicant, to:
(a)
whether or not the officer is an insolvent under administration;
(b)
any conviction of the officer, during the 10 years ending on the day of the application, of serious fraud;
(c)
any reason the Commission has to believe that the officer is not of good fame and character; and
(d)
any reason the Commission has to believe that the officer will not perform efficiently, honestly and fairly the duties that the officer would perform in connection with the holding of the licence.
784(5)
[Licence granted under corresponding previous law]
A licence granted under a previous law of this jurisdiction corresponding to this section and in force at the commencement of this Part shall be deemed to have been granted under this section.
History
S 784(5) amended by No 110 of 1990, Sch 1 (effective 18 December 1990).