Corporations Act 2001
CHAPTER 7
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FINANCIAL SERVICES AND MARKETS
A CS facility licensee must:
(aa) to the extent that it is reasonably practicable to do so:
(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:
(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:
(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 ).
A person contravenes this subsection if the person contravenes paragraph (1)(aa), (a), (c), (d), (e), (f), (g) or (h).
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
PART 7.3
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LICENSING OF CLEARING AND SETTLEMENT FACILITIES
Division 2
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Regulation of CS facility licensees
Subdivision A
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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 (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 ).
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 ).
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