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 7.2 - LICENSING OF FINANCIAL MARKETS  

Division 3 - Regulation of market licensees  

Subdivision A - Licensee's obligations  

SECTION 792A   GENERAL OBLIGATIONS  

792A(1)    
A market licensee must:

(a)    to the extent that it is reasonably practicable to do so, do all things necessary to ensure that the market is a fair, orderly and transparent market; and

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

(c)    have adequate arrangements (which may involve the appointment of an independent person or related entity) for operating the market, including arrangements for:

(i) handling conflicts between the commercial interests of the licensee and the need for the licensee to ensure that the market operates in the way mentioned in paragraph (a); and

(ii) monitoring and enforcing compliance with the market ' s operating rules; and

(d)    have sufficient resources (including financial, technological and human resources) to operate the market properly; and

(e)    if section 881A requires there to be compensation arrangements in relation to the market that are approved in accordance with Division 3 of Part 7.5 - ensure that there are such approved compensation arrangements in relation to the market; and

(f)    if the licensee is a foreign body corporate - be registered under Division 2 of Part 5B.2 ; and

(g)    if the licence was granted under subsection 795B(2) (overseas markets) - both:

(i) remain authorised to operate a financial market in the foreign country in which the licensee ' s principal place of business is located; and

(ii) get the Minister ' s approval under section 792H before that principal place of business becomes located in any other foreign country; and

(h)    

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

(i)    take all reasonable steps to ensure that no disqualified individual becomes, or remains, involved in the licensee (see Division 2 of Part 7.4 ).

792A(2)    

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

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