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 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision A - Licensee ' s obligations  

SECTION 821A   GENERAL OBLIGATIONS  

821A(1)    
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 - take all reasonable steps to ensure that an unacceptable control situation 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 ).

821A(2)    

A person contravenes this subsection if the person contravenes paragraph (1)(aa) , (a) , (c) , (d) , (e) , (f) , (g) or (h) .

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