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 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 8B - Action against relevant providers  

Subdivision C - Warnings and reprimands  

SECTION 921S   WARNINGS AND REPRIMANDS BY ASIC  

921S(1)  
ASIC must give a relevant provider a written warning or reprimand if:

(a)  ASIC reasonably believes that one or more of the following circumstances exist or have occurred in relation to the relevant provider:


(i) the relevant provider is not a fit and proper person to provide personal advice to retail clients in relation to relevant financial products, having regard to the matters specified in section 921U but subject to Part VIIC of the Crimes Act 1914 ;

(ii) the relevant provider has contravened a financial services law (including a restricted civil penalty provision);

(iii) a circumstance mentioned in any of paragraphs 921K(1)(a) , (b) , (e) , (f) or (g) (power of Financial Services and Credit Panels to take action against relevant providers); and

(b)  ASIC has not convened, and does not propose to convene, a Financial Services and Credit Panel under subsection 139(1) of the ASIC Act to perform functions or exercise powers under the corporations legislation in relation to that circumstance or those circumstances; and

(c)  ASIC has not exercised, and does not propose to exercise, any of its powers under the corporations legislation (other than this section) against the relevant provider in relation to that circumstance or those circumstances.

Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.

921S(2)  
If the relevant provider is authorised to provide personal advice to retail clients, on behalf of a financial services licensee, in relation to relevant financial products, ASIC must give a copy of the warning or reprimand to the licensee.

921S(3)  
The warning or reprimand, and any copy of the warning or reprimand given to a financial services licensee under subsection (2) , must be accompanied by a statement of reasons for the decision to give the warning or reprimand.

921S(4)  
A warning or reprimand given under subsection (1) is not a legislative instrument.


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