Corporations Amendment (Financial Market Supervision) Act 2010 (26 of 2010)

Schedule 1   Supervision of financial markets

Corporations Act 2001

29   After section 1317HA

Insert:

1317HB Compensation orders - market integrity rules

Compensation for damage suffered

(1) A Court may order a person (the liable person ) to compensate another person (including a corporation), or a registered scheme, for damage suffered by the person or scheme if:

(a) the liable person has contravened subsection 798H(1) (complying with market integrity rules); and

(b) the damage resulted from the contravention.

The order must specify the amount of compensation.

Note: An order may be made under this subsection whether or not a declaration of contravention has been made under section 1317E.

(2) Subsection (1) does not apply in relation to a contravention by the operator of a licensed market acting in that capacity.

Damage includes profits

(3) In determining the damage suffered by a person or scheme for the purposes of making a compensation order, include profits made by any person resulting from the contravention.

Damage to scheme includes diminution of value of scheme property

(4) In determining the damage suffered by a registered scheme for the purposes of making a compensation order, include any diminution in the value of the property of the scheme.

Recovery of damage

(5) A compensation order may be enforced as if it were a judgment of the Court.