CORPORATIONS ACT 2001 - SECT 915I Special procedures for APRA - regulated bodies

CORPORATIONS ACT 2001 - SECT 915I

  (1)   If a financial services licensee, or a related body corporate, is a body (the APRA body ) regulated by APRA, other than an ADI (within the meaning of the Banking Act 1959 ), the following provisions apply:

  (aa)   ASIC cannot suspend or cancel the licensee's licence if the licensee is authorised to provide a superannuation trustee service unless:

  (i)   APRA has agreed in writing with the proposed action; or

  (ii)   the licensee applied under paragraph   915B(1)(e), (2)(d), (3)(d) or (4)(d) for ASIC to take the proposed action; or

  (iii)   the licensee's RSE licence is not in effect, and is not treated by section   29GB of the Superannuation Industry (Supervision) Act 1993 as if it were in effect;

  (a)   if paragraph   (aa) does not apply, ASIC cannot suspend or cancel the licensee's licence if doing so would, in ASIC's opinion, have the result of preventing the APRA body from being able to carry on all or any of its usual activities (being activities in relation to which APRA has regulatory or supervisory responsibilities), unless ASIC has first consulted APRA about the proposed action;

  (b)   if ASIC suspends or cancels the licensee's licence and paragraphs   (aa) and (a) do not apply to that action, ASIC must, within one week, inform APRA of the action that has been taken.

  (2)   If:

  (a)   a financial services licensee is an ADI (within the meaning of the Banking Act 1959 ); or

  (b)   a related body corporate of a financial services licensee is an ADI (within the meaning of the Banking Act 1959 ), and cancellation or suspension of the licensee's licence would, in ASIC's opinion, have the result of preventing the ADI from being able to carry on all or any of its banking business (within the meaning of the Banking Act 1959 );

the following provisions have effect:

  (c)   subject to paragraph   (d), the powers that ASIC would otherwise have under this Subdivision to cancel or suspend the licensee's licence, or to subsequently revoke a suspension to which this subsection applied, are instead powers of the Minister;

  (d)   the procedures for the exercise of a power to which paragraph   (c) applies are the same as would apply if ASIC could exercise the power, except that the Minister must not exercise the power unless he or she has first considered advice from ASIC on the proposed action, being advice given after ASIC has consulted APRA about the proposed action;

  (e)   ASIC (rather than the Minister) must still conduct any hearing required under paragraph   915C(4)(a) and receive any submissions under paragraph   915C(4)(b).

  (3)   A failure to comply with a requirement of this section to consult or inform APRA about, or to consider advice from ASIC about, or to get the agreement of APRA about, a suspension or cancellation, or a revocation of a suspension, of a licence does not invalidate the action taken.