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 7.2 - LICENSING OF FINANCIAL MARKETS  

Division 2 - Requirement to be licensed  

SECTION 791E   CRITERIA FOR DECLARATIONS THAT FINANCIAL MARKETS HAVE A MATERIAL CONNECTION WITH THIS JURISDICTION  

791E(1)    
When ASIC is deciding under subsection 791D(2) whether to declare that a financial market has a material connection with this jurisdiction:

(a)    the market must have a connection with this jurisdiction (see subsection (2) of this section); and

(b)    ASIC must consider, under subsection (3) of this section, whether the connection is material.

Does the market have a connection with this jurisdiction?

791E(2)    
The financial market has a connection with this jurisdiction if one or more of the following paragraphs apply to the market:

(a)    the market has operations located in this jurisdiction;

(b)    the market provides a market for financial products:

(i) denominated in Australian currency; or

(ii) issued by a domestic corporation or by the Commonwealth, a State or a Territory;

(c)    the market provides a market for financial products based on something else (of any nature whatsoever and whether or not deliverable) located or issued in this jurisdiction, including, for example, one or more of the following:

(i) an asset;

(ii) a rate (including an interest rate or exchange rate);

(iii) an index;

(iv) a commodity;

(d)    one or more current or expected participants in the market are resident or based in this jurisdiction;

(e)    the market targets investors resident or based in this jurisdiction;

(f)    circumstances determined under paragraph (4)(a) exist in relation to the market.

If such a connection exists, is it material?

791E(3)    
The financial market ' s connection with this jurisdiction is material if ASIC considers that, after applying any principles in force under paragraph (4)(c) , either or both of the following paragraphs apply to the market:

(a)    the size and extent of current or expected aggregate activity in the market of participants in the market is material to:

(i) the risk management activities of those participants; or

(ii) the efficient allocation of capital or liquidity to the Australian economy; or

(iii) the provision of fair, orderly and transparent financial markets to those participants who are resident or based in this jurisdiction; or

(iv) confident and informed decision-making by consumers of financial products or financial services who are resident or based in this jurisdiction;

(b)    circumstances determined under paragraph (4)(b) exist in relation to the market.

Relevant ASIC determinations

791E(4)    
ASIC may by legislative instrument:

(a)    determine circumstances for the purposes of paragraph (2)(f) ; or

(b)    determine circumstances for the purposes of paragraph (3)(b) ; or

(c)    determine, for each paragraph of subsection (3) , principles for working out if that paragraph applies to a financial market.

Note: A single document could cover any or all of the things mentioned in paragraphs (a) to (c) .

ASIC may request related information

791E(5)    
ASIC may, by written notice given to a body corporate, request the body to give ASIC, within a period specified in the notice, information about a financial market operated by the body.