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 7.10B - FINANCIAL SERVICES COMPENSATION SCHEME OF LAST RESORT  

Division 4 - Powers, reporting and information sharing  

Subdivision C - Powers of the Minister  

SECTION 1069H   MINISTERIAL DETERMINATION  

Ministerial determination

1069H(1)    
Subsection (2) applies if the Minister is notified under subsection 1069F(3) that a revised claims, fees and costs estimate for:

(a)    a levy period; and

(b)    a sub-sector (the primary sub-sector );

could cause the sub-sector levy cap for the levy period and the primary sub-sector to be exceeded (or further exceeded).

1069H(2)    
The Minister may, by legislative instrument, make a determination for the levy period and the primary sub-sector dealing with one or more of the matters mentioned in subsections (3) to (5) .

Note: The matter in subsection (5) involves the determination specifying further sub-sectors on which special levy will be imposed.

Manner of payment

1069H(3)    
A determination made under subsection (2) may provide that an amount of compensation payable by the CSLR operator to a person in a specified class of persons must be paid in specified instalments over a specified period of time.

Special levy for just the primary sub-sector

1069H(4)    
For the purposes of paragraph 8(3)(b) of the Financial Services Compensation Scheme of Last Resort Levy Act 2023 , a determination made under subsection (2) of this section may:

(a)    specify that levy needs to be imposed by subsection 8(3) of that Act for the levy period and the primary sub-sector; and

(b)    specify the total amount of levy that needs to be imposed by subsection 8(3) of that Act across all persons for the levy period and the primary sub-sector, which must not exceed the difference between:

(i) the revised claims, fees and costs estimate (referred to in subsection (1) of this section) for the levy period and the primary sub-sector; and

(ii) the total amount of levy already paid as worked out under subsection (6) of this section.

Special levy for several sub-sectors not just the primary sub-sector

1069H(5)    
For the purposes of paragraph 9(b) of the Financial Services Compensation Scheme of Last Resort Levy Act 2023 , a determination made under subsection (2) of this section may:

(a)    specify that levy needs to be imposed by section 9 of that Act ( special levy ) for the levy period if the Minister is satisfied that imposing special levy:

(i) is necessary due to the number of persons accepting amounts of compensation under section 1069 of this Act for the levy period and the primary sub-sector, and due to the size of the sum of those amounts; and

(ii) is the most effective way of enabling payment of those amounts to those persons in a timely manner; and

(b)    for each of one or more specified sub-sectors - specify a total amount of special levy that needs to be imposed for the levy period across all members of the specified sub-sector if the Minister has had regard to:

(i) the impact that imposing that total amount of special levy may have on the financial sustainability and viability of the specified sub-sector; and

(ii) the impact that imposing that total amount of special levy across all members of the specified sub-sector may have on the financial system more broadly; and

(c)    specify the sum of the total amounts of special levy specified under paragraph (b) of this subsection, which must not exceed the difference between:

(i) the revised claims, fees and costs estimate (referred to in subsection (1) of this section) for the levy period and the primary sub-sector; and

(ii) the total amount of levy already paid as worked out under subsection (6) of this section.

Working out the total amount of levy already paid

1069H(6)    
For the purposes of subparagraph (4)(b)(ii) or (5)(c)(ii) , work out the sum of:

(a)    the total amount of levy paid that was earlier imposed by section 8 of the Financial Services Compensation Scheme of Last Resort Levy Act 2023 across all persons for the levy period and the primary sub-sector; and

(b)    the total amount of levy paid that was earlier imposed by section 9 of that Act across all persons for all sub-sectors in relation to any earlier revised claims, fees and costs estimate for the levy period and the primary sub-sector.