Section 823D — Corporations Act 2001: ASIC’s directions power—protecting dealings in financial products and ensuring fair and effective provision of services by CS facilities

(1) ASIC may, by written notice given to a CS facility licensee, direct the licensee: (a) not to provide the licensee’s services in relation to any transactions that: (i) the licensee receives notice of after the direction is given; and (ii) relate to a specified financial product or class of financial products; or (b) to take, or refrain from taking: (i) any actions; or (ii) one or more specified actions; relating to dealings with transactions relating to a specified financial product or class of financial products; if subsection (2) applies. (2) This subsection applies if ASIC considers that: (a) the direction is necessary, or in the public interest, to protect people dealing in a financial product or class of financial products; or (b) the licensee has not done all things reasonably practicable to ensure the facility’s services are provided in a fair and effective way. (3) The direction: (a) must specify a reasonable time by which, or a reasonable period during which, it is to be complied with; and (b) must include the reasons for the direction; and (c) may deal with either or both of the matters in paragraphs (1)(a) and (b). (4) The licensee must comply with the direction (even if, under subsection 823DA(1), the licensee has requested ASIC to refer the direction to the Minister). Note: Failure to comply with this subsection is an offence: see subsection 1311(1). (5) If the licensee fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that the licensee comply with the direction.