Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.2 - LICENSING OF FINANCIAL MARKETS  

Division 3 - Regulation of market licensees  

Subdivision A - Licensee's obligations  

SECTION 792A   GENERAL OBLIGATIONS  

792A(1)  
A market licensee must:


(a) to the extent that it is reasonably practicable to do so, do all things necessary to ensure that the market is a fair, orderly and transparent market; and


(b) comply with the conditions on the licence; and


(c) have adequate arrangements (which may involve the appointment of an independent person or related entity) for operating the market, including arrangements for:


(i) handling conflicts between the commercial interests of the licensee and the need for the licensee to ensure that the market operates in the way mentioned in paragraph (a); and

(ii) monitoring and enforcing compliance with the market ' s operating rules; and


(d) have sufficient resources (including financial, technological and human resources) to operate the market properly; and


(e) if section 881A requires there to be compensation arrangements in relation to the market that are approved in accordance with Division 3 of Part 7.5 - ensure that there are such approved compensation arrangements in relation to the market; and


(f) if the licensee is a foreign body corporate - be registered under Division 2 of Part 5B.2 ; and


(g) if the licence was granted under subsection 795B(2) (overseas markets) - both:


(i) remain authorised to operate a financial market in the foreign country in which the licensee ' s principal place of business is located; and

(ii) get the Minister ' s approval under section 792H before that principal place of business becomes located in any other foreign country; and


(h) if the licensee, or a holding company of the licensee, is a widely held market body (within the meaning of Division 1 of Part 7.4 ) - take all reasonable steps to ensure that an unacceptable control situation (within the meaning of that Division) does not exist in relation to the body; and


(i) take all reasonable steps to ensure that no disqualified individual becomes, or remains, involved in the licensee (see Division 2 of Part 7.4 ).

792A(2)  


A person contravenes this subsection if the person contravenes paragraph (1)(a), (c), (d), (e), (f), (g), (h) or (i).

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


 

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