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 4 - Other matters  

SECTION 827A   MATTERS TO BE TAKEN INTO ACCOUNT BY ASIC  

827A(1)    

ASIC must have regard to certain matters in deciding whether to:

(a)    grant an applicant an Australian CS facility licence under section 824B ; or

(b)    impose, vary or revoke conditions on such a licence under section 825A ; or

(c)    suspend or cancel such a licence under section 826C ; or

(d)    disallow a change to the operating rules of a licensed CS facility under section 822E .

827A(2)    

These are the matters ASIC must have regard to:

(a)    the structure, or proposed structure, of the facility;

(b)    the nature of the services provided, or proposed to be provided, by the facility;

(c)    the size, or proposed size, of the facility;

(d)    the nature of the financial products in respect of which the facility provides services or proposes to provide services;

(e)    the participants, or proposed participants, in the facility and whether those participants:

(i) in using the facility's services, are, or will be, providing financial services to other persons; or

(ii) use, or will use, the facility's services in respect of financial products they acquire or dispose of as retail clients or as wholesale clients; or

(iii) are, or will be, participants in a financial market, or other clearing and settlement facilities, as well;

(f)    the technology used, or proposed to be used, in the operation of the facility;

(g)    whether it would be in the public interest to take the action referred to in subsection (1) ;

(h)    

any relevant advice received from the ACCC or the Reserve Bank.

ASIC may also have regard to any other matter that ASIC considers relevant.

827A(3)    

If ASIC is deciding whether to take the action mentioned in paragraph (1)(a) , (b) or (c) in respect of an Australian CS facility licence granted under subsection 824B(2) (overseas clearing and settlement facilities), ASIC must also have regard to:

(a)    the criteria that the licensee or applicant satisfied to obtain an authorisation to operate the same facility in the foreign country in which their principal place of business is located; and

(b)    the obligations they must continue to satisfy to keep the authorisation; and

(c)    the level of supervision to which the facility is subject in that country; and

(d)    

whether adequate arrangements exist for cooperation between ASIC, the Reserve Bank and the authority, or authorities, that are responsible for that supervision; and

(e)    

the arrangements the licensee or applicant has in place relating to its governance and operations, including the adequacy of those arrangements for ensuring:

(i) the facility ' s services are provided in a fair and effective way in this jurisdiction; and

(ii) the integrity of, and public confidence in, the operation of the facility in this jurisdiction; and

(iii) the overall stability in the Australian financial system.