Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 912A

             (1)  A financial services licensee must:

                     (a)  do all things necessary to ensure that the financial services covered by the licence are provided efficiently, honestly and fairly; and

                    (aa)  have in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in relation to activities undertaken by the licensee or a representative of the licensee in the provision of financial services as part of the financial services business of the licensee or the representative; and

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

                     (c)  comply with the financial services laws; and

                    (ca)  take reasonable steps to ensure that its representatives comply with the financial services laws; and

                     (d)  unless the licensee is a body regulated by APRA--have available adequate resources (including financial, technological and human resources) to provide the financial services covered by the licence and to carry out supervisory arrangements; and

                     (e)  maintain the competence to provide those financial services; and

                      (f)  ensure that its representatives are adequately trained, and are competent, to provide those financial services; and

                     (g)  if those financial services are provided to persons as retail clients--have a dispute resolution system complying with subsection (2); and

                     (h)  unless the licensee is a body regulated by APRA--have adequate risk management systems; and

                      (j)  comply with any other obligations that are prescribed by regulations made for the purposes of this paragraph.

             (2)  To comply with this subsection, a dispute resolution system must consist of:

                     (a)  an internal dispute resolution procedure that:

                              (i)  complies with standards, and requirements, made or approved by ASIC in accordance with regulations made for the purposes of this subparagraph; and

                             (ii)  covers complaints against the licensee made by retail clients in connection with the provision of all financial services covered by the licence; and

                     (b)  membership of one or more external dispute resolution schemes that:

                              (i)  is, or are, approved by ASIC in accordance with regulations made for the purposes of this subparagraph; and

                             (ii)  covers, or together cover, complaints (other than complaints that may be dealt with by the Superannuation Complaints Tribunal established by section 6 of the Superannuation (Resolution of Complaints) Act 1993 ) against the licensee made by retail clients in connection with the provision of all financial services covered by the licence.

             (3)  Regulations made for the purposes of subparagraph (2)(a)(i) or (2)(b)(i) may also deal with the variation or revocation of:

                     (a)  standards or requirements made by ASIC; or

                     (b)  approvals given by ASIC.