Corporations Act 2001
If ASIC considers that a CS facility licensee has not done all things reasonably practicable to reduce systemic risk in the provision of the facility's services, ASIC may give the licensee a direction, in writing, to take:
(a) specified measures to comply with the whole or a part of a standard determined under section 827D ; or
(b) any other action that ASIC considers will reduce systemic risk in the provision of the facility's services. 823E(2) [ Period of compliance]
The direction may deal with the time by which, or period during which, it is to be complied with. The time or period must be reasonable.823E(3) [ Compliance]
The licensee must comply with the direction.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).823E(3A) [ Failure to comply]
If the licensee fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that the licensee comply with the direction.823E(4) [ Variation of direction]
ASIC may vary the direction by giving written notice to the licensee.823E(5) [ Duration of direction]
The direction has effect until ASIC revokes it by giving written notice to the licensee.823E(6) [ Revocation of direction]
ASIC may revoke the direction if, at the time of revocation, it considers that the direction is no longer necessary or appropriate.823E(7) [ Consultation with RBA]
Before giving, varying or revoking the direction, ASIC must consult the Reserve Bank of Australia. However, a failure to consult the Reserve Bank of Australia does not invalidate the direction, variation or revocation.823E(8) [ Request of direction by RBA]
The Reserve Bank of Australia may at any time request ASIC to make a direction under this section. However, ASIC is not required to comply with the request.