THE CORPORATIONS LAW

CHAPTER 8 - THE FUTURES INDUSTRY

PART 8.5 - FINANCIAL STATEMENTS AND AUDIT

SECTION 1221   CERTAIN MATTERS TO BE REPORTED TO COMMISSION  

1221(1)  [Futures exchange to report on prescribed matter]  

Where, in relation to a futures broker who is a member of a futures exchange, the futures exchange becomes aware of a prescribed matter, the futures exchange shall, as soon as practicable after becoming aware of the matter, lodge a written report on the matter and send a copy of the report to the broker.

1221(2)  [Application of subsec (1)]  

Subsection (1) applies:

(a)  in relation to a clearing house for a futures exchange and a member of the clearing house; and

(b)  in relation to a futures association and a member of the futures association (unless the futures association is also a futures exchange);

in the same manner as it applies in relation to a futures exchange and a member of the futures exchange.

1221(3)  [``prescribed matter'']  

In this section, ``prescribed matter'', in relation to a futures broker, means a matter that, in the opinion of the futures exchange, clearing house or futures association concerned:

(a)  has adversely affected, is adversely affecting, or may adversely affect, the ability of the broker to meet the broker's obligations as a broker;

(b)  constitutes or may constitute a contravention of section 1209, 1213 or 1214;

(c)  constitutes or may constitute a contravention of a condition of a licence held by the broker; or

(d)  constitutes a failure to make, in accordance with Part 8.6, contributions to a fidelity fund.