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 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision C - Powers of ASIC and the Reserve Bank in relation to licensees  

SECTION 823D   ASIC ' S DIRECTIONS POWER - PROTECTING DEALINGS IN FINANCIAL PRODUCTS AND ENSURING FAIR AND EFFECTIVE PROVISION OF SERVICES BY CS FACILITIES  

823D(1)    
ASIC may, by written notice given to a CS facility licensee, direct the licensee:

(a)    not to provide the licensee ' s services in relation to any transactions that:

(i) the licensee receives notice of after the direction is given; and

(ii) relate to a specified financial product or class of financial products; or

(b)    to take, or refrain from taking:

(i) any actions; or

(ii) one or more specified actions;

relating to dealings with transactions relating to a specified financial product or class of financial products;

if subsection (2) applies.

823D(2)    
This subsection applies if ASIC considers that:

(a)    the direction is necessary, or in the public interest, to protect people dealing in a financial product or class of financial products; or

(b)    the licensee has not done all things reasonably practicable to ensure the facility ' s services are provided in a fair and effective way.

823D(3)    
The direction:

(a)    must specify a reasonable time by which, or a reasonable period during which, it is to be complied with; and

(b)    must include the reasons for the direction; and

(c)    may deal with either or both of the matters in paragraphs (1)(a) and (b) .

823D(4)    
The licensee must comply with the direction (even if, under subsection 823DA(1) , the licensee has requested ASIC to refer the direction to the Minister).

Note: Failure to comply with this subsection is an offence: see subsection 1311(1) .

823D(5)    
If the licensee fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that the licensee comply with the direction.