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 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

Division 9 - Other matters  

Subdivision D - Other matters  

SECTION 849CA   RESERVE BANK MAY OBJECT TO EXERCISE OF CERTAIN POWERS BY ASIC DURING CRISIS RESOLUTION  

849CA(1)    
ASIC must not take action mentioned in subsection (2) in relation to a body corporate to which subsection (3) applies unless the Reserve Bank has, by written notice given to ASIC, informed ASIC that the Reserve Bank does not object to the action.

849CA(2)    
For the purposes of subsection (1) , the actions are the following:

(a)    making market integrity rules or CS facility rules that the body corporate must comply with, other than a rule the Reserve Bank requests ASIC to make under subsection 849AB(1) ;

(b)    giving a direction under section 794A , 794D , 794E , 798J , 823A or 823D to the body corporate;

(c)    varying a direction mentioned in paragraph (b) of this subsection;

(d)    an action prescribed by the regulations for the purposes of this paragraph in relation to the body corporate.

849CA(3)    
This subsection applies in relation to a body corporate if:

(a)    the body corporate is under statutory management; or

(b)    all of the following subparagraphs apply:

(i) the Reserve Bank has made a determination under section 837A that there is to be a transfer of shares in the body corporate;

(ii) a certificate issued under section 838A that the transfer is to take effect has not come into force;

(iii) the Reserve Bank has not determined under section 837F that the transfer is not to take effect; or

(c)    all of the following subparagraphs apply:

(i) the Reserve Bank has made a determination under section 837B that there is to be a transfer of business of the body corporate;

(ii) a certificate issued under section 838A that the transfer is to take effect has not come into force;

(iii) the Reserve Bank has not determined under section 837F that the transfer is not to take effect; or

(d)    a direction given to the body corporate by the Reserve Bank under subsection 840A(1) is in force; or

(e)    the body corporate is:

(i) a related body corporate of a CS facility licensee to which paragraph (a) , (b) , (c) or (d) of this subsection applies; or

(ii) a market licensee that has clearing and settlement arrangements with a CS facility licensee to which paragraph (a) , (b) , (c) or (d) applies for the clearing and settlement of transactions through a clearing and settlement facility operated by the CS facility licensee.

Ministerial consideration of action

849CA(4)    
If:

(a)    ASIC has asked the Reserve Bank whether the Reserve Bank, for the purposes of subsection (1) , does not object to an action; and

(b)    the Reserve Bank has not, by written notice given to ASIC, informed ASIC that the Reserve Bank does not object to the action;

ASIC may refer the matter to the Minister.

849CA(5)    
The Minister may, after being referred the matter, direct the Reserve Bank to inform ASIC, by written notice given to ASIC, that the Reserve Bank does not object to the action.

849CA(6)    
The Reserve Bank must comply with the direction given under subsection (5) immediately.

Actions begun before crisis resolution

849CA(7)    
To avoid doubt, subsection (1) does not affect the validity or application of anything done by ASIC before subsection (3) began to apply in relation to the body corporate.