CORPORATIONS ACT 2001 - SECT 912DAB Obligation to lodge a report--reportable situations in relation to other financial services licensees

CORPORATIONS ACT 2001 - SECT 912DAB

Reporting a reportable situation to ASIC

  (1)   A financial services licensee (the reporting licensee ) must lodge a report with ASIC in accordance with this section if there are reasonable grounds to believe that:

  (a)   a reportable situation has arisen in relation to another financial services licensee of the kind mentioned in:

  (i)   paragraph   912D(1)(a) or (b) (significant breach or likely breach of a core obligation); or

  (ii)   subsection   912D(2) (gross negligence or serious fraud); and

  (b)   one of the following is an individual who has engaged in conduct that forms part of the reportable situation:

  (i)   the other financial services licensee;

  (ii)   an employee of the other financial services licensee or of a related body corporate of the other financial services licensee, acting within the scope of the employee's employment;

  (iii)   a director of the other financial services licensee or of a related body corporate of the other financial services licensee, acting within the scope of the director's duties as director;

  (iv)   another representative of the other financial services licensee acting within the scope of the representative's authority given by the licensee; and

  (c)   the individual provides personal advice to retail clients in relation to relevant financial products.

Report must be in the prescribed form

  (2)   The report must be lodged with ASIC in writing in the prescribed form.

Period within which report must be lodged

  (3)   The report must be lodged with ASIC within 30 days after the reporting licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs   (1)(a), (b) and (c).

If the reportable situation already reported to ASIC

  (4)   Subsection   (1) does not apply in relation to a reportable situation if there are reasonable grounds to believe that ASIC is aware of:

  (a)   the existence of the reportable situation; and

  (b)   all of the information that is required in a report under this section in relation to the reportable situation.

A copy of the report must be given to the other financial services licensee

  (5)   The reporting licensee must give a copy of any report that the reporting licensee is required to lodge with ASIC under subsection   (1) to the other financial services licensee within 30 days after the reporting licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs   (1)(a), (b) and (c).

  (6)   A financial services licensee has qualified privilege in relation to a copy of a report given under subsection   (5).

  (7)   A financial services licensee who has qualified privilege under subsection   (6) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.

Civil penalty provision

  (8)   A person contravenes this subsection if the person contravenes subsection   (1) or (5).

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

Meaning of knowledge and recklessness

  (9)   For the purposes of this section:

"knowledge" has the meaning given by section   5.3 of the   Criminal Code .

"recklessness" has the meaning given by section   5.4 of the   Criminal Code .