CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 8B - Compliance schemes  

Subdivision C - Investigations by monitoring body  

SECTION 921N   OBLIGATION TO NOTIFY LICENSEE OF FAILURE TO COMPLY WITH CODE OF ETHICS  

921N(1)  
A monitoring body for a compliance scheme that covers a relevant provider must notify a financial services licensee if:


(a) either:


(i) the monitoring body determines under subsection 921L(1) that the relevant provider has failed to comply with the Code of Ethics; or

(ii) the monitoring body imposes a sanction on the relevant provider in relation to a failure to comply with the Code of Ethics; and


(b) the relevant provider is authorised by the licensee to provide personal advice to retail clients in relation to relevant financial products.

921N(2)  
The monitoring body must notify the licensee within 30 days after making the determination or imposing the sanction.

Note 1: The approval for a compliance scheme may be revoked if the monitoring body for the scheme does not comply with this section (see subsection 921K(7) ).

Note 2: ASIC must be notified if a monitoring body becomes aware of a failure, or possible failure, to comply with the Code of Ethics by a relevant provider, or if a sanction is imposed on a relevant provider under a compliance scheme (see section 922HD ).


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