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 821B   OBLIGATION TO NOTIFY ASIC OF CERTAIN MATTERS  

821B(1)  
A CS facility licensee must give written notice to ASIC, as soon as practicable, if it becomes aware that it may no longer be able to meet, or has breached, an obligation under section 821A . If ASIC considers it appropriate to do so, ASIC may give the Minister advice about the matter.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

821B(2)  
A CS facility licensee must give written notice to ASIC, as soon as practicable, as required by the following paragraphs:


(a) if the licensee provides a new class of financial service incidental to the operation of the facility, the licensee must give notice that includes details of the new class;


(b) if the licensee takes any kind of disciplinary action against a participant in the facility, the licensee must give notice that includes:


(i) the participant ' s name; and

(ii) the reason for and nature of the action taken;


(c) if the licensee has reason to suspect that a person has committed, is committing, or is about to commit a significant contravention of the facility ' s operating rules or this Act, the licensee must give notice that includes:


(i) the person ' s name; and

(ii) details of the contravention or impending contravention; and

(iii) the licensee ' s reasons for that belief.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

821B(3)  
A CS facility licensee whose licence was granted under subsection 824B(2) (overseas clearing and settlement facilities) must, as soon as practicable, give written notice to ASIC if:


(a) the licensee ceases to be authorised to operate a clearing and settlement facility in the foreign country in which the licensee ' s principal place of business is located; or


(b) there is a significant change to the regulatory regime applying in relation to the facility in the foreign country in which the licensee ' s principal place of business is located.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

821B(4)  
As soon as practicable after:


(a) a person becomes or ceases to be a director, secretary or senior manager of a CS facility licensee or of a holding company of a CS facility licensee (including when a person changes from one of those positions to another); or


(b) a CS facility licensee becomes aware that a person has come to have, or has ceased to have, more than 15% of the voting power in the licensee or in a holding company of the licensee;

the licensee must give written notice of this to ASIC. The notice must include such other information about the matter as is prescribed by regulations made for the purposes of this subsection.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: To the extent that the licensee is required to give the notice and information under any other provision of this Act, the licensee may comply with this subsection by doing so. It need not provide the same information twice.

821B(6)  


A person contravenes this subsection if the person contravenes subsection (1), (2), (3) or (4).

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


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