Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (87 of 2024)

Schedule 2   Financial market infrastructure: new and enhanced regulatory powers

Part 8   Streamlining some of ASIC's existing directions powers

Corporations Act 2001

70   Section 798J

Repeal the section, substitute:

798J ASIC's directions power - protecting people dealing in financial products

(1) ASIC may, by written notice given to an entity, direct the entity:

(a) to suspend dealings in a 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 in a specified financial product or class of financial products;

if ASIC considers the direction is necessary, or in the public interest, to protect people dealing in the financial product or class of financial products.

(2) 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).

Note: ASIC may also give directions to entities that are market licensees under section 794D. A failure to comply with a direction under that section is an offence: see subsection 1311(1).

(3) The entity must comply with the direction (even if, under subsection 798JA(1), the licensee has requested ASIC to refer the direction to the Minister).

(4) 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.

798JA Matters relating to ASIC directions - protecting people dealing in financial products

Referrals to the Minister

(1) If, at any time after an entity receives a direction under subsection 798J(1), the entity requests in writing that ASIC refer the direction to the Minister, ASIC must do so immediately.

(2) The Minister may, if the Minister considers it appropriate after being referred the direction, direct ASIC to vary or revoke the direction.

(3) ASIC must comply with the direction given under subsection (2) immediately.

(4) A direction given under subsection (2) is not a legislative instrument.

Variations and revocations

(5) ASIC may vary or revoke a direction given under subsection 798J(1):

(a) in like manner; and

(b) subject to like conditions, except if a condition is contrary to a direction given under subsection (2) of this section;

(see subsection 33(3) of the Acts Interpretation Act 1901).

Directions are not legislative instruments

(6) A direction given under subsection 798J(1) is not a legislative instrument.