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 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

Division 3 - Obligations of financial services licensees  

Subdivision B - Providing information and assistance to ASIC  

SECTION 912DAB   OBLIGATION TO LODGE A REPORT - REPORTABLE SITUATIONS IN RELATION TO OTHER FINANCIAL SERVICES LICENSEES  

Reporting a reportable situation to ASIC

912DAB(1)    
A financial services licensee (the reporting licensee ) must lodge a report with ASIC in accordance with this section if there are reasonable grounds to believe that:

(a)    a reportable situation has arisen in relation to another financial services licensee of the kind mentioned in:

(i) paragraph 912D(1)(a) or (b) (significant breach or likely breach of a core obligation); or

(ii) subsection 912D(2) (gross negligence or serious fraud); and

(b)    one of the following is an individual who has engaged in conduct that forms part of the reportable situation:

(i) the other financial services licensee;

(ii) an employee of the other financial services licensee or of a related body corporate of the other financial services licensee, acting within the scope of the employee ' s employment;

(iii) a director of the other financial services licensee or of a related body corporate of the other financial services licensee, acting within the scope of the director ' s duties as director;

(iv) another representative of the other financial services licensee acting within the scope of the representative ' s authority given by the licensee; and

(c)    the individual provides personal advice to retail clients in relation to relevant financial products.

Report must be in the prescribed form

912DAB(2)    
The report must be lodged with ASIC in writing in the prescribed form.

Period within which report must be lodged

912DAB(3)    
The report must be lodged with ASIC within 30 days after the reporting licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a) , (b) and (c) .

If the reportable situation already reported to ASIC

912DAB(4)    
Subsection (1) does not apply in relation to a reportable situation if there are reasonable grounds to believe that ASIC is aware of:

(a)    the existence of the reportable situation; and

(b)    all of the information that is required in a report under this section in relation to the reportable situation.

A copy of the report must be given to the other financial services licensee

912DAB(5)    
The reporting licensee must give a copy of any report that the reporting licensee is required to lodge with ASIC under subsection (1) to the other financial services licensee within 30 days after the reporting licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a) , (b) and (c) .

912DAB(6)    
A financial services licensee has qualified privilege in relation to a copy of a report given under subsection (5) .

912DAB(7)    
A financial services licensee who has qualified privilege under subsection (6) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.

Civil penalty provision

912DAB(8)    
A person contravenes this subsection if the person contravenes subsection (1) or (5) .

Note: This subsection is a civil penalty provision (see section 1317E ).

Meaning of knowledge and recklessness

912DAB(9)    

For the purposes of this section:

knowledge
has the meaning given by section 5.3 of the Criminal Code .

recklessness
has the meaning given by section 5.4 of the Criminal Code .