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 794D   ASIC ' S DIRECTIONS POWER - PROTECTING DEALINGS IN FINANCIAL PRODUCTS  

794D(1)    
ASIC may, by written notice given to a market licensee, direct the licensee:

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

(b)    to take, or refrain from taking:

(i) any actions; or

(ii) one or more specified actions;

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

if ASIC considers the direction is necessary, or in the public interest, to protect people dealing in the 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 the financial product or class of financial products; or

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

794D(2)    
The direction:

(a)    must specify a reasonable time by which, or a reasonable period during which, it is to be complied with; and

(b)    must include the reasons for the direction; and

(c)    may deal with either or both of the matters in paragraphs (1)(a) and (b) .

794D(3)    
The licensee must comply with the direction (even if, under subsection 794DA(1) , the licensee has requested ASIC to refer the direction to the Minister).

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

794D(4)    
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.