Section 1215 — Corporations Act 2001: Stop order—Australian passport funds

ASIC may make stop orders (1) ASIC may, by written instrument, order the operator of an Australian passport fund to do one or more of the following: (a) cease to offer, or not to begin offering, interests in the fund to persons in this jurisdiction either indefinitely or for a period specified in the order; (b) cease to offer, or not to begin offering, interests in the fund to persons in another participating economy either indefinitely or for a period specified in the order; (c) take other action specified in the order; (d) cease to take other action specified in the order. The order is a stop order. (2) A stop order may include a statement that specified conduct engaged in contrary to the order will be regarded as not complying with the requirements of a specified provision of this Act. Basis on which stop orders may be made (3) However, ASIC may only make a stop order under this section if ASIC is of the opinion that: (a) one or more of the following has not been, is not being or is not likely to be complied with in relation to the fund (whether in this jurisdiction or in any other place): (i) this Act (including the Passport Rules for this jurisdiction); (ii) the ASIC Act; or (b) if the order is made under paragraph (1)(c)—taking the action specified in the order is reasonably necessary to ensure that an order made under paragraph (1)(a) or (b) is complied with; or (c) if the order is made under paragraph (1)(d)—not taking the action specified in the order is reasonably necessary to ensure that an order made under paragraph (1)(a) or (b) is complied with. Hearing before stop order made (4) Before making a stop order, ASIC must: (a) hold a hearing; and (b) give a reasonable opportunity to any interested people to make oral or written submissions to ASIC on whether an order should be made. ASIC must give notice if stop order made (5) If ASIC makes a stop order under this section, ASIC must give the operator of the fund a copy of the order as soon as reasonably practicable after it is made.