CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 3 - Obligations of financial services licensees  

SECTION 912A   GENERAL OBLIGATIONS  

912A(1)  
A financial services licensee must:


(a) do all things necessary to ensure that the financial services covered by the licence are provided efficiently, honestly and fairly; and


(aa) have in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in relation to activities undertaken by the licensee or a representative of the licensee in the provision of financial services as part of the financial services business of the licensee or the representative; and


(b) comply with the conditions on the licence; and


(c) comply with the financial services laws; and


(ca) take reasonable steps to ensure that its representatives comply with the financial services laws; and


(cb) if the licensee is the operator of an Australian passport fund, or a person with responsibilities in relation to an Australian passport fund, comply with the law of each host economy for the fund; and


(d) subject to subsection (4) - have available adequate resources (including financial, technological and human resources) to provide the financial services covered by the licence and to carry out supervisory arrangements; and


(e) maintain the competence to provide those financial services; and


(f) ensure that its representatives are adequately trained (including by complying with section 921D ), and are competent, to provide those financial services; and


(g) if those financial services are provided to persons as retail clients:


(i) have a dispute resolution system complying with subsection (2); and

(ii) give ASIC the information specified in any instrument under subsection (2A); and


(h) subject to subsection (5) - have adequate risk management systems; and


(j) comply with any other obligations that are prescribed by regulations made for the purposes of this paragraph.

912A(2)  
To comply with this subsection, a dispute resolution system must consist of:


(a) an internal dispute resolution procedure that:


(i) complies with standards, and requirements, made or approved by ASIC in accordance with regulations made for the purposes of this subparagraph; and

(ii) covers complaints against the licensee made by retail clients in connection with the provision of all financial services covered by the licence; and


(b) (Repealed)


(c) membership of the AFCA scheme.

912A(2A)  


ASIC may, by legislative instrument, specify information that financial services licensees must give ASIC relating to their internal dispute resolution procedures and the operation of their internal dispute resolution procedures.

912A(2B)  


An instrument under subsection (2A) must not specify any information that is personal information within the meaning of the Privacy Act 1988 .

912A(3)  


Regulations made for the purposes of subparagraph (2)(a)(i) may also deal with the variation or revocation of:


(a) standards or requirements made by ASIC; or


(b) approvals given by ASIC.

912A(4)  


Paragraph (1)(d):


(a) does not apply to a body regulated by APRA, unless the body is an RSE licensee; and


(b) does not apply to an RSE licensee, unless the RSE licensee is also the responsible entity of a registered scheme.

912A(5)  


Paragraph (1)(h):


(a) does not apply to a body regulated by APRA, unless the body is an RSE licensee that is also the responsible entity of a registered scheme; and


(b) does not apply to an RSE licensee that is also the responsible entity of a registered scheme, to the extent that the risk relates solely to the operation of a regulated superannuation fund by the RSE licensee.

912A(5A)  


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

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

912A(6)  


In this section:

person with responsibilities in relation to an Australian passport fund
means a person (other than a regulator) who has functions or duties in relation to the fund under the Passport Rules for this jurisdiction.

regulated superannuation fund
has the same meaning as in the Superannuation Industry (Supervision) Act 1993 .

RSE licensee
has the same meaning as in the Superannuation Industry (Supervision) Act 1993 .


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