CORPORATIONS ACT 2001 - SECT 821A General obligations

CORPORATIONS ACT 2001 - SECT 821A

  (1)   A CS facility licensee must:

  (aa)   to the extent that it is reasonably practicable to do so:

  (i)   comply with standards determined under section   827D; and

  (ii)   do all other things necessary to reduce systemic risk; and

  (a)   to the extent that it is reasonably practicable to do so, do all things necessary to ensure that the facility's services are provided in a fair and effective way; and

  (b)   comply with the conditions on the licence; and

  (c)   have adequate arrangements (whether they involve a self - regulatory structure or the appointment of an independent person or related entity) for supervising the facility, including arrangements for:

  (i)   handling conflicts between the commercial interests of the licensee and the need for the licensee to ensure that the facility's services are provided in a fair and effective way; and

  (ii)   enforcing compliance with the facility's operating rules; and

  (d)   have sufficient resources (including financial, technological and human resources) to operate the facility properly and for the required supervisory arrangements to be provided; and

  (e)   if the licensee is a foreign body corporate--be registered under Division   2 of Part   5B.2; and

  (f)   if the licence was granted under subsection   824B(2) (overseas clearing and settlement facilities)--both:

  (i)   remain authorised to operate a clearing and settlement facility in the foreign country in which the licensee's principal place of business is located; and

  (ii)   get the Minister's approval under section   821F before that principal place of business becomes located in any other foreign country; and

  (g)   if the licensee, or a holding company of the licensee, is a widely held market body--take all reasonable steps to ensure that an unacceptable control situation () does not exist in relation to the body; and

  (h)   take all reasonable steps to ensure that no disqualified individual becomes, or remains, involved in the licensee (see Division   2 of Part   7.4).

  (2)   A person contravenes this subsection if the person contravenes paragraph   (1)(aa), (a), (c), (d), (e), (f), (g) or (h).

Note:   This subsection is a civil penalty provision (see section   1317E).