CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 2 - When there must be a compensation regime  

SECTION 881B   ADDITIONAL REQUIREMENTS FOR THE LICENCE APPLICATION  

881B(1)   [ Market licence application]  

A person who is applying for an Australian market licence must state in their application:


(a) whether any of the participants in the market, in effecting transactions through the market, will provide financial services for persons as retail clients; and


(b) if any participants will so provide financial services to persons as retail clients - whether, in connection with the provision of those financial services, those persons will or may give money or other property, or authority over property, to those participants.

881B(2)   [ Proposed compensation arrangements]  

If:


(a) participants in the market will provide financial services to persons as retail clients as mentioned in paragraph (1)(a); and


(b) in connection with the provision of those financial services, those persons will or may give money or property, or authority over property, to those participants;

the application must:


(c) contain the information, in relation to the proposed compensation arrangements, required by regulations made for the purposes of this paragraph and be accompanied by a copy of the proposed compensation rules; or


(d) state that the market is or will be covered by Division 4 , and set out evidence, in accordance with the requirements (if any) of the regulations, in support of that statement.


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