CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision C - Powers of the Minister, ASIC and the Reserve Bank in relation to licensees  

SECTION 823E   DIRECTIONS POWER - REDUCTION OF SYSTEMIC RISK  

823E(1)   [ Direction to reduce systemic risk]  

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.


 

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