CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision A - 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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