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 882B   HOW TO GET COMPENSATION ARRANGEMENTS APPROVED AFTER LICENCE IS GRANTED  

882B(1)    

If the operator of a licensed market wants to have compensation arrangements for the market approved after the licence has been granted, to ASIC for approval in accordance with this section.

882B(2)    

The application must:

(a)    contain the information, in relation to the proposed compensation arrangements, required by regulations made for the purposes of this paragraph; and

(b)    

be accompanied by a copy of the proposed compensation rules.

882B(3)    

If ASIC does not consider that the proposed compensation arrangements are adequate, the application for approval must be rejected.

882B(4)    

If ASIC considers that the proposed compensation arrangements are adequate, ASIC must:

(a)    approve the compensation arrangements in writing; and

(b)    vary the conditions of the operator's licence so as to:

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

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

882B(5)    

In varying licence conditions as mentioned in paragraph (4)(b) , ASIC must proceed under section 796A as though the licensee had applied for the variation to be made.