CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 8B - Compliance schemes  

Subdivision B - Approval of compliance schemes  

SECTION 921K   APPROVAL OF COMPLIANCE SCHEMES  

921K(1)  
A monitoring body for a compliance scheme may apply to ASIC for approval of the compliance scheme.

Note: A monitoring body for a compliance scheme may propose to modify the scheme (see section 921R ).

921K(2)  
The application must set out details of the scheme, including:


(a) the name of the monitoring body for the scheme; and


(b) arrangements for monitoring compliance with the Code of Ethics by relevant providers covered by the scheme; and


(c) sanctions for failures to comply with the Code of Ethics by relevant providers covered by the scheme; and


(d) arrangements for resolving disputes between the monitoring body and relevant providers covered by the scheme; and


(e) arrangements for making complaints to the monitoring body in relation to failures to comply with, or possible failures to comply with, the Code of Ethics by relevant providers covered by the scheme.

921K(3)  
The application must include evidence that the monitoring body has sufficient resources and expertise to appropriately monitor and enforce compliance with the Code of Ethics under the scheme. Approval of compliance scheme

921K(4)  
ASIC may approve the scheme if it is satisfied that:


(a) compliance with the Code of Ethics will be appropriately monitored and enforced under the scheme; and


(b) the monitoring body has sufficient resources and expertise to appropriately monitor and enforce compliance with the Code of Ethics under the scheme.

921K(5)  
ASIC may approve the scheme subject to any one or more conditions ASIC considers appropriate.

921K(6)  
ASIC must, within a reasonable period, decide the application and notify the monitoring body of:


(a) the decision; and


(b) any condition mentioned in subsection (5). Revocation of approval, imposition of additional conditions etc.

921K(7)  
ASIC may, in accordance with subsection (8), take an action specified under subsection (9) if ASIC is satisfied:


(a) that compliance with the Code of Ethics is not being appropriately monitored or enforced under the scheme; or


(b) that the monitoring body has not complied with:


(i) section 921N (obligation to notify licensee of failure to comply with Code of Ethics); or

(ii) a request under section 921Q (obligation to provide ASIC with information); or

(iii) section 921T (obligation to notify ASIC of changes to monitoring body); or

(iv) section 922HD (obligation to notify ASIC in relation to failures to comply with the Code of Ethics); or


(c) that the monitoring body does not have sufficient resources or expertise to appropriately monitor or enforce compliance with the Code of Ethics under the scheme.

921K(8)  
ASIC must not take an action specified under subsection (9) unless:


(a) ASIC gives a written notice to the monitoring body:


(i) providing reasons why ASIC is considering taking the action; and

(ii) stating that the monitoring body has 90 business days to make submissions to ASIC, in accordance with the notice, about the possible action; and


(b) ASIC has considered any submissions made by the monitoring body in accordance with the notice.

921K(9)  
The following actions are specified:


(a) revoking the approval of the scheme;


(b) varying a condition imposed in relation to the approval of the scheme;


(c) imposing an additional condition in relation to the approval of the scheme. Revocation of conditions etc.

921K(10)  
ASIC may revoke or vary a condition imposed in relation to the approval of the scheme if ASIC is satisfied that compliance with the Code of Ethics will continue to be appropriately monitored and enforced under the scheme if ASIC revokes or varies the condition.

921K(11)  
ASIC must, within a reasonable period, notify the monitoring body if ASIC revokes or varies a condition under subsection (10).


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