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 3 - Regulation of market licensees  

Subdivision C - Powers of ASIC  

SECTION 794AA   ASIC ' S DIRECTIONS POWER - CRISIS RESOLUTION  

794AA(1)    
If the Reserve Bank, under subsection 849AB(1) , requests ASIC to give a direction to a market licensee under this subsection to do, or to refrain from doing, specified things, ASIC may give the licensee a written direction to do, or to refrain from doing, those things.

794AA(2)    
Without limiting subsection (1) , the specified things may include:

(a)    suspending dealings in a specified financial product or class of financial products; or

(b)    taking:

(i) any actions; or

(ii) one or more specified actions;

relating to dealings in a specified financial product or class of financial products.

Example: Under paragraph (b), a direction could require the licensee to take actions to:

(a) limit the kinds of dealings that are allowed in a financial product or class of financial products; or

(b) require participants in a market to act in a specified manner in relation to dealings in a financial product or class of financial products.

794AA(3)    
The direction must specify a reasonable time by which, or a reasonable period during which, it is to be complied with.

794AA(4)    
The licensee must comply with the direction.

Note: Failure to comply with this subsection is an offence: see subsection 1311(1) .

794AA(5)    
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.