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 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 3 - Approved compensation arrangements  

Subdivision A - Approval of compensation arrangements  

SECTION 882A   HOW TO GET COMPENSATION ARRANGEMENTS APPROVED WITH GRANT OF LICENCE  

882A(1)    
If an application for an Australian market licence contains information in relation to proposed compensation arrangements in accordance with paragraph 881B(2)(c) , ASIC must treat the application as also being an application for approval of the compensation arrangements and, for that purpose, must consider whether the proposed arrangements are adequate.

882A(2)    
If ASIC does not consider that the proposed compensation arrangements are adequate, the application for the licence must be rejected.

882A(3)    
If ASIC considers that the proposed compensation arrangements are adequate, ASIC may (subject to the other provisions about granting licences) grant the licence. On the granting of the licence, ASIC is taken to have approved the compensation arrangements.

Note: The other provisions about granting licences are in Subdivision A of Division 4 of Part 7.2 .

882A(4)    
In the conditions of the licence, ASIC must:

(a)    deal with the minimum amount of cover required in relation to the compensation arrangements in such manner as ASIC thinks appropriate; and

(b)    identify the source of funds available to cover claims, on the basis of which ASIC approves the arrangements (see section 885H ).