Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.4 - LIMITS ON INVOLVEMENT WITH LICENSEES  

Division 1 - Limit on control of certain licensees  

Subdivision A - 20% voting power limit  

SECTION 850A   SCOPE OF DIVISION  

850A(1)    
This Division applies in relation to widely held market bodies.

Meaning of widely held market body

850A(2)    
A body corporate is a widely held market body if the body:

(a)    is:

(i) a market licensee or the holding company of such a licensee; or

(ii) a CS facility licensee or the holding company of such a licensee; and

(b)    is declared under subsection (3) .

850A(3)    
ASIC may, by legislative instrument, declare a specified body corporate for the purposes of paragraph (2)(b) if, having regard to the matters in subsection (4) , ASIC is satisfied that:

(a)    if the body is a market licensee or the holding company of such a licensee - the financial market to which the licence relates is of national significance; or

(b)    if the body is a CS facility licensee or the holding company of such a licensee - the clearing and settlement facility to which the licence relates is of national significance.

850A(4)    
The matters are:

(a)    the significance to the national economy of the operation of the market or the facility; and

(b)    the size and importance of the market or the facility:

(i) in the context of the Australian financial products and services industry; and

(ii) relative to other financial markets on which similar financial products are dealt, or other clearing and settlement facilities providing similar services, in Australia; and

(c)    the degree of, or potential for, competition within the market or the facility; and

(d)    any other matters that ASIC considers relevant.

850A(5)    
ASIC must not make a declaration under subsection (3) unless:

(a)    the Minister has approved it in writing; and

(b)    if the proposed declaration relates to a body corporate mentioned in subparagraph (2)(a)(ii) - ASIC has consulted the Reserve Bank about it.