Corporations Regulations 2001
CHAPTER 7
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FINANCIAL SERVICES AND MARKETS
PART 7.5
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COMPENSATION REGIMES FOR FINANCIAL MARKETS
Division 2
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When there must be a compensation regime
REGULATION 7.5.14
7.5.14
APPLICATION FOR AUSTRALIAN MARKET LICENCE: INFORMATION ABOUT COMPENSATION ARRANGEMENTS
For paragraph 881B(2) (c) of the Act, the following information, relating to proposed compensation arrangements, is prescribed:
(a) the services and products provided by the financial market, and participants connected with the financial market;
(b) the sources of all funds to be used for compensation;
(c) the proposed minimum amount of cover, and how that amount has been calculated;
(d) the number of markets to which the compensation arrangements are intended to apply;
(e) details of any arrangement between the market operator and any other person associated with the operation of the compensation arrangement;
(f) details of the payments that will be able to be made, in accordance with the compensation arrangements, that will not be payments required by the Act or another law;
(g) the names of the persons responsible for the administration and monitoring functions mentioned in paragraphs 885I(1) (a), (b) and (c) of the Act, and details of the financial, technological and other resources to be used for those purposes;
(h) the name of the proposed auditor of the accounts relating to the compensation arrangements;
(i) the way in which the compensation arrangements will be monitored to ensure that they comply with the Act and these Regulations;
(j) the way in which the compensation arrangements will be monitored to ensure that they are adequate.
View history note
Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
For paragraph 881B(2) (c) of the Act, the following information, relating to proposed compensation arrangements, is prescribed:
(a) the services and products provided by the financial market, and participants connected with the financial market;
(b) the sources of all funds to be used for compensation;
(c) the proposed minimum amount of cover, and how that amount has been calculated;
(d) the number of markets to which the compensation arrangements are intended to apply;
(e) details of any arrangement between the market operator and any other person associated with the operation of the compensation arrangement;
(f) details of the payments that will be able to be made, in accordance with the compensation arrangements, that will not be payments required by the Act or another law;
(g) the names of the persons responsible for the administration and monitoring functions mentioned in paragraphs 885I(1) (a), (b) and (c) of the Act, and details of the financial, technological and other resources to be used for those purposes;
(h) the name of the proposed auditor of the accounts relating to the compensation arrangements;
(i) the way in which the compensation arrangements will be monitored to ensure that they comply with the Act and these Regulations;
(j) the way in which the compensation arrangements will be monitored to ensure that they are adequate.
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