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 4 - Australian financial services licences  

Subdivision C - When a licence can be varied, suspended or cancelled  

SECTION 915B   IMMEDIATE SUSPENSION OR CANCELLATION  

Licence held by an individual

915B(1)    

ASIC may suspend or cancel an Australian financial services licence held by an individual, by giving written notice to the person, if the person:

(a)    ceases to carry on the financial services business; or

(b)    becomes an insolvent under administration; or

(c)    is convicted of serious fraud; or

(d)    becomes incapable of managing their affairs because of mental or physical incapacity; or

(e)    

lodges with ASIC in a prescribed form an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or

(f)    

is liable to pay levy imposed by the ASIC Supervisory Cost Recovery Levy Act 2017 and has not paid in full at least 12 months after the due date for payment:

(i) the amount of levy; and

(ii) the amount of any late payment penalty payable in relation to the levy; and

(iii) the amount of any shortfall penalty payable in relation to the levy; or

(g)    

is liable to pay an instalment of levy (within the meaning of the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023 ) and has not paid in full at least 12 months after the due date for payment:

(i) the amount of the instalment of levy; and

(ii) the amount of any late payment penalty in relation to the instalment of levy; and

(iii) the amount of any shortfall penalty payable in relation to the instalment of levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

915B(1A)    

ASIC may also cancel an Australian financial services licence held by an individual, by giving written notice to the individual, if the individual does not provide a financial service covered by the licence before the end of 6 months after the licence is granted.

915B(1B)    

ASIC must cancel an Australian financial services licence held by an individual, by giving written notice to the individual, if:

(a)    the individual is required to pay an amount to another person in accordance with a relevant AFCA determination; and

(b)    the CSLR operator has paid, under section 1063 , an amount of compensation to the other person for the relevant AFCA determination.

Licence held by a partnership

915B(2)    
ASIC may suspend or cancel an Australian financial services licence held by a partnership, by giving written notice to the partnership, if:

(a)    the partnership ceases to carry on the financial services business; or

(b)    a creditor ' s petition or a debtor ' s petition is presented under Division 2 or 3 of Part IV of the Bankruptcy Act 1966 against the partnership; or

(ba)    

an officer of the partnership becomes an insolvent under administration; or

(c)    one or more of the partners is convicted of serious fraud; or

(d)    

the partnership lodges with ASIC in a prescribed form an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or

(e)    

in the case of a partnership that is a leviable entity (within the meaning of the ASIC Supervisory Cost Recovery Levy Act 2017 ) - the following have not been paid in full at least 12 months after the due date for payment:

(i) an amount of levy (if any) payable in respect of the licensee;

(ii) an amount of late payment penalty payable (if any) in relation to the levy;

(iii) an amount of shortfall penalty payable (if any) in relation to the levy; or

(f)    

in the case of a partnership that is liable to pay an instalment of levy (within the meaning of the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023 ) - the following have not been paid in full at least 12 months after the due date for payment:

(i) the amount of the instalment of levy;

(ii) the amount of any late payment penalty in relation to the instalment of levy;

(iii) the amount of any shortfall penalty payable in relation to the instalment of levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

915B(2A)    

ASIC may also cancel an Australian financial services licence held by a partnership, by giving written notice to the partnership, if the partnership does not provide a financial service covered by the licence before the end of 6 months after the licence is granted.

915B(2B)    

ASIC must cancel an Australian financial services licence held by a partnership, by giving written notice to the partnership, if:

(a)    one or more of the partners is required to pay an amount to a person in accordance with a relevant AFCA determination; and

(b)    the CSLR operator has paid, under section 1063 , an amount of compensation to the person for the relevant AFCA determination.

Licence held by a body corporate

915B(3)    

ASIC may suspend or cancel an Australian financial services licence held by a body corporate, by giving written notice to the body, if:

(a)    

the body ceases to carry on the financial services business; or

(b)    

the body becomes a Chapter 5 body corporate; or

(ba)    

an officer of the body becomes an insolvent under administration; or

(c)    

the body is a responsible entity of a registered scheme whose members have suffered, or are likely to suffer, loss or damage because the body has breached this Act; or

(caa)    

the body is an operator of a notified foreign passport fund whose members have suffered, or are likely to suffer, loss or damage because the body has breached this Act; or

(ca)    

the body is a trustee company whose clients have suffered, or are likely to suffer, loss or damage because the company has breached:

(i) this Act; or

(ii) a financial services law referred to in paragraph (f) of the definition of financial services law in section 761A ; or

(d)    

the body lodges with ASIC in a prescribed form an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or

(e)    

the body is liable to pay levy imposed by the ASIC Supervisory Cost Recovery Levy Act 2017 and has not paid in full at least 12 months after the due date for payment:

(i) the amount of levy; and

(ii) the amount of any late payment penalty payable in relation to the levy; and

(iii) the amount of any shortfall penalty payable in relation to the levy; or

(f)    

the body is liable to pay an instalment of levy (within the meaning of the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023 ) and has not paid in full at least 12 months after the due date for payment:

(i) the amount of the instalment of levy; and

(ii) the amount of any late payment penalty in relation to the instalment of levy; and

(iii) the amount of any shortfall penalty payable in relation to the instalment of levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

915B(3A)    

ASIC may also cancel an Australian financial services licence held by a body corporate, by giving written notice to the body, if the body does not provide a financial service covered by the licence before the end of 6 months after the licence is granted.

915B(3B)    

ASIC must cancel an Australian financial services licence held by a body corporate, by giving written notice to the body, if:

(a)    the body is required to pay an amount to a person in accordance with a relevant AFCA determination; and

(b)    the CSLR operator has paid, under section 1063 , an amount of compensation to the person for the relevant AFCA determination.

915B(4)    
ASIC may suspend or cancel an Australian financial services licence held by the trustees of a trust, by giving written notice to the trustees, if:

(a)    the trustees of the trust cease to carry on the financial services business; or

(b)    

a trustee who is an individual:

(i) becomes an insolvent under administration; or

(ii) is convicted of serious fraud; or

(iii) becomes incapable of managing their affairs because of physical or mental incapacity; or

(c)    a trustee that is a body corporate becomes a Chapter 5 body corporate; or

(ca)    

an officer of a trustee becomes an insolvent under administration; or

(d)    

the trustees lodge with ASIC in a prescribed form an application for ASIC to do so, which is accompanied by the documents, if any, required by regulations made for the purposes of this paragraph; or

(e)    

in the case of a licensee that is a single legal entity under section 761FA and also a leviable entity (within the meaning of the ASIC Supervisory Cost Recovery Levy Act 2017 ) - the following have not been paid in full at least 12 months after the due date for payment:

(i) an amount of levy (if any) payable in respect of the licensee;

(ii) an amount of late payment penalty payable (if any) in relation to the levy;

(iii) an amount of shortfall penalty payable (if any) in relation to the levy; or

(f)    

in the case of a licensee that is a single legal entity under section 761FA of this Act and also liable to pay an instalment of levy (within the meaning of the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023 ) - the following have not been paid in full at least 12 months after the due date for payment:

(i) the amount of the instalment of levy;

(ii) the amount of any late payment penalty in relation to the instalment of levy;

(iii) the amount of any shortfall penalty payable in relation to the instalment of levy.

Note: For fees in respect of lodging applications, see Part 9.10 .

915B(4A)    

ASIC may also cancel an Australian financial services licence held by the trustees of a trust, by giving written notice to the trustees, if the trustees of the trust do not provide a financial service covered by the licence before the end of 6 months after the licence is granted.

915B(4B)    

ASIC must cancel an Australian financial services licence held by the trustees of a trust, by giving written notice to the trustees, if:

(a)    the trustees of the trust are required to pay an amount to a person in accordance with a relevant AFCA determination; and

(b)    the CSLR operator has paid, under section 1063 , an amount of compensation to the person for the relevant AFCA determination.