Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 4 - Australian financial services licences  

Subdivision C - When a licence can be varied, suspended or cancelled  

SECTION 915B   IMMEDIATE SUSPENSION OR CANCELLATION  

Licence held by a natural person

915B(1)  
ASIC may suspend or cancel an Australian financial services licence held by a natural person, by giving written notice to the person, if the person:


(a) ceases to carry on the financial services business; or


(b) becomes an insolvent under administration; or


(c) is convicted of serious fraud; or


(d) becomes incapable of managing their affairs because of mental or physical incapacity; or


(e) lodges with ASIC an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or


(f) is liable to pay levy imposed by the ASIC Supervisory Cost Recovery Levy Act 2017 and has not paid in full at least 12 months after the due date for payment:


(i) the amount of levy; and

(ii) the amount of any late payment penalty payable in relation to the levy; and

(iii) the amount of any shortfall penalty payable in relation to the levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

Licence held by a partnership

915B(2)  
ASIC may suspend or cancel an Australian financial services licence held by a partnership, by giving written notice to the partnership, if:


(a) the partnership ceases to carry on the financial services business; or


(b) a creditor's petition or a debtor's petition is presented under Division 2 or 3 of Part IV of the Bankruptcy Act 1966 against the partnership; or


(c) one or more of the partners is convicted of serious fraud; or


(d) the partnership lodges with ASIC an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or


(e) in the case of a partnership that is a leviable entity (within the meaning of the ASIC Supervisory Cost Recovery Levy Act 2017 ) - the following have not been paid in full at least 12 months after the due date for payment:


(i) an amount of levy (if any) payable in respect of the licensee;

(ii) an amount of late payment penalty payable (if any) in relation to the levy;

(iii) an amount of shortfall penalty payable (if any) in relation to the levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

Licence held by a body corporate

915B(3)  
ASIC may suspend or cancel an Australian financial services licence held by a body corporate, by giving written notice to the body, if the body:


(a) ceases to carry on the financial services business; or


(b) becomes a Chapter 5 body corporate; or


(c) is a responsible entity of a registered scheme whose members have suffered, or are likely to suffer, loss or damage because the body has breached this Act; or


(caa) is an operator of a notified foreign passport fund whose members have suffered, or are likely to suffer, loss or damage because the body has breached this Act; or


(ca) is a trustee company whose clients have suffered, or are likely to suffer, loss or damage because the company has breached:


(i) this Act; or

(ii) a financial services law referred to in paragraph (e) of the definition of financial services law in section 761A ; or


(d) lodges with ASIC an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or


(e) is liable to pay levy imposed by the ASIC Supervisory Cost Recovery Levy Act 2017 and has not paid in full at least 12 months after the due date for payment:


(i) the amount of levy; and

(ii) the amount of any late payment penalty payable in relation to the levy; and

(iii) the amount of any shortfall penalty payable in relation to the levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

915B(4)  
ASIC may suspend or cancel an Australian financial services licence held by the trustees of a trust, by giving written notice to the trustees, if:


(a) the trustees of the trust cease to carry on the financial services business; or


(b) a trustee who is a natural person:


(i) becomes an insolvent under administration; or

(ii) is convicted of serious fraud; or

(iii) becomes incapable of managing their affairs because of physical or mental incapacity; or


(c) a trustee that is a body corporate becomes a Chapter 5 body corporate; or


(d) the trustees lodge with ASIC an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or


(e) in the case of a licensee that is a single legal entity under section 761FA and also a leviable entity (within the meaning of the ASIC Supervisory Cost Recovery Levy Act 2017 ) - the following have not been paid in full at least 12 months after the due date for payment:


(i) an amount of levy (if any) payable in respect of the licensee;

(ii) an amount of late payment penalty payable (if any) in relation to the levy;

(iii) an amount of shortfall penalty payable (if any) in relation to the levy.

Note 1: For fees in respect of lodging applications, see Part 9.10 .

Note 2: If there is only one trustee, subsection (1) will apply (if the trustee is a natural person), and subsection (3) will apply (if the trustee is a body corporate).


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