Corporations Act 2001
Sections and provisions with full text and the judgments that cite each one.
Section 881A — Licensed markets through which participants provide services for retail clients must generally have a compensation regime
(1) If: (a) any of the participants in a licensed market, in effecting transactions through the market, provide financial services for persons as retail clients; and (b) in connection with the…
Section 881B — Additional requirements for the licence application
(1) A person who is applying for an Australian market licence must state in their application: (a) whether any of the participants in the market, in effecting transactions through the market, will…
Section 881C — What happens if an application contains information in accordance with paragraph 881B(2)(c)
If a licence application contains information in relation to proposed compensation arrangements as required by paragraph 881B(2)(c), ASIC must deal with the application in accordance with section…
Section 881D — What happens if an application contains a statement in accordance with paragraph 881B(2)(d)
(1) If a licence application contains a statement in accordance with paragraph 881B(2)(d), ASIC must consider whether ASIC is satisfied that the market will be covered by Division 4. (2) If ASIC is…
Section 882A — How to get compensation arrangements approved with grant of licence
(1) If an application for an Australian market licence contains information in relation to proposed compensation arrangements in accordance with paragraph 881B(2)(c), ASIC must treat the application…
Section 882B — How to get compensation arrangements approved after licence is granted
(1) If the operator of a licensed market wants to have compensation arrangements for the market approved after the licence has been granted, the operator must apply to ASIC for approval in accordance…
Section 882C — Revocation of approval
ASIC may at any time revoke an approval of compensation arrangements if ASIC considers that the arrangements are not adequate.
Section 882D — ASIC’s power to give directions
(1) If ASIC considers that a market licensee’s approved compensation arrangements are no longer adequate, ASIC may give the licensee a written direction to do specified things that ASIC believes will…
Section 883A — Legal effect of compensation rules
Compensation rules forming part of Division 3 arrangements for a financial market have effect as a contract under seal between the operator of the market and each participant in the market under…
Section 883B — Enforcement of compensation rules
(1) If a person who is under an obligation to comply with or enforce any of the compensation rules forming part of Division 3 arrangements for a financial market fails to meet that obligation, an…
Section 883C — Other sources of funds for compensation
Nothing in this Division makes the operator of a financial market liable to pay compensation or provide compensation from any source of funds other than the source identified in the licence…
Section 883D — Payment of levies
(1) This section applies if, under the compensation rules forming part of Division 3 arrangements for a particular financial market, a levy is payable by all or some of the participants in the market…
Section 884A — Division 3 arrangements must generally only be changed in accordance with this Subdivision
(1) The operator of a financial market in relation to which there are Division 3 arrangements must not change those arrangements except in accordance with this Subdivision. (2) However, a change may…
Section 884B — Changing Division 3 arrangements—matters required to be dealt with in the compensation rules
(1) If the proposed change is to a matter required by section 885B to be dealt with in the compensation rules, the change may only be made by changing the rules. (2) As soon as practicable after the…
Section 884C — Changing Division 3 arrangements—matters not required to be dealt with in the compensation rules
(1) If: (a) the proposed change is to a matter that is not required by section 885B to be dealt with in the compensation rules (including a matter that is dealt with in the compensation rules even…
Section 885A — Purpose of this Subdivision
(1) This Subdivision applies for the purpose of determining, for the purposes of a provision of this Division: (a) whether: (i) proposed compensation arrangements are adequate; or (ii) compensation…
Section 885B — Requirements to be complied with for arrangements to be adequate
(1) The arrangements are adequate if, and only if, ASIC is satisfied that: (a) the compensation rules provide adequate coverage for Division 3 losses (see sections 885C and 885D); and (b) the…
Section 885C — The losses to be covered
(1) Subject to section 885D, the compensation rules must cover losses (Division 3 losses) of a kind described in the following paragraphs: (a) a person (the client) gave money or other property, or…
Section 885D — Certain losses that are not Division 3 losses
(1) If, in relation to a loss suffered by a person: (a) the requirements of subsection 885C(1) are satisfied in relation to a participant and 2 or more financial markets; and (b) the person did not…
Section 885E — The amount of compensation
(1) Subject to this section, the compensation rules must provide that the amount of compensation to be paid, or the value of compensation to be provided in a form other than money in respect of a…
Section 885F — Method of payment of compensation
(1) The compensation rules must deal with how compensation in respect of Division 3 losses is to be paid or provided. (2) Without limiting subsection (1), the compensation rules may provide for…
Section 885G — Making and determination of claims
(1) The compensation rules must provide for how claims in respect of Division 3 losses are to be made and determined, and for how claimants are notified of the outcome of their claims. (2) Without…
Section 885H — The source of funds—general
There must be an adequate source of funds available to cover claims made under the compensation arrangements in respect of Division 3 losses and in respect of any other losses covered by the…
Section 885I — Administration and monitoring
(1) The arrangements must include arrangements for: (a) the administration of the compensation arrangements; and (b) monitoring compliance with the compensation arrangements and reporting breaches of…
Section 885J — The losses to be covered—other matters to be taken into account
(1) In considering whether the arrangements are adequate, ASIC must also have regard to: (a) the services provided by the market and by the participants in the market; and (b) any risk assessment…
Section 886A — Only one claim in respect of the same loss
If: (a) a claim by a person for compensation (including interest referred to in subsection 885E(5)) in respect of a particular Division 3 loss suffered by the person has been allowed under Division 3…
Section 886B — Regulations relating to fidelity funds
The regulations may include provisions relating to how a fidelity fund, or part of a fidelity fund, is to be dealt with if: (a) the operator of a financial market becomes insolvent, within the…
Section 887A — Markets to which this Division applies
This Division applies to a financial market that is operated by: (a) a body corporate that is a member of the SEGC; or (b) a body corporate that is a subsidiary of such a member; other than any such…
Section 888A — The situations in which compensation may be claimed
(1) The situations in which compensation may be claimed in respect of a loss that is connected with a financial market to which this Division applies are as specified in the regulations. (2) Without…
Section 888B — Kinds of compensation available
The regulations may provide that compensation under this Division is to take the form of a payment of money or some other form (for example, a transfer of financial products).
Section 888C — Amount of compensation payable
(1) The amount of compensation (including the value of any non-monetary compensation) to which a person is entitled in respect of a claim that is allowed is to be as determined in accordance with the…
Section 888D — Payment of compensation
(1) The regulations may provide for the compensation to be paid in a lump sum or by instalments. (2) The regulations may make other provisions in relation to how compensation is to be paid.
Section 888E — Making and determination of claims
(1) Claims are to be made and determined in accordance with: (a) the regulations; and (b) any relevant provisions of the SEGC’s operating rules. (2) Without limiting subsection (1), the regulations,…
Section 888F — The SEGC has power to determine claims
The SEGC has power to determine claims in accordance with this Division.
Section 888G — Allowing a claim does not constitute an admission of any other liability
If the SEGC allows a claim, neither the allowance of the claim, nor any other act done by SEGC as a result of allowing the claim, constitutes an admission (by anyone) of any liability, other than the…
Section 888H — Claimant may apply to Court if claim disallowed
(1) If the SEGC has disallowed a claim, the claimant may bring proceedings in the Court to establish the claim. The proceedings must be brought within 3 months of notice of the disallowance of the…
Section 888I — Non-NGF property of the SEGC not available to meet claims
Money or other property of the SEGC that is not part of the NGF is not available to be applied in respect of a claim that has been allowed by the SEGC, whether or not under an order of the Court.
Section 888J — The SEGC may enter into contracts of insurance or indemnity
(1) The SEGC may enter into a contract with a person (the insurer) carrying on a fidelity insurance business under which the SEGC will be insured or indemnified against liability in respect of claims…
Section 888K — NGF may be used to acquire financial products to be transferred as compensation
The SEGC may pay money out of the NGF to acquire financial products for the purpose of providing compensation (in accordance with the regulations) that takes the form of a transfer of financial…
Section 889A — Continuation of the National Guarantee Fund
The National Guarantee Fund that continued to exist under section 928B of this Act before the repeal of that section by the Financial Services Reform Act 2001 continues in existence as the National…
Section 889B — Compensation to be provided out of the NGF
Compensation payable under this Division is to be paid out of the NGF.
Section 889C — The SEGC to keep the NGF
(1) The SEGC must keep and administer the NGF. (2) The assets of the NGF are the property of SEGC, but must be kept separate from all other property and must be held on trust by the SEGC for the…
Section 889D — What the NGF consists of
The NGF consists of: (a) money and other property constituting the NGF before the commencement of this Chapter; and (b) money paid into the NGF in accordance with section 889J or 889K; and (c) money…
Section 889E — Power to borrow etc. for purposes of the NGF
(1) If the SEGC considers that, in the interests of the sound financial management of the NGF, money should be borrowed for the purpose of meeting a payment due out of the NGF, the SEGC may borrow…
Section 889F — Money borrowed and paid to the SEGC
(1) This section applies if money borrowed by the SEGC under subsection 889E(1) is paid to the SEGC. (2) The SEGC must pay the money into the NGF. (3) If: (a) the money was borrowed for the purpose…
Section 889G — Money borrowed and not paid to the SEGC
(1) This section applies if money borrowed by the SEGC under subsection 889E(1) is not paid to the SEGC but is payable to other persons at the direction of the SEGC. (2) The SEGC must not direct that…
Section 889H — Payments out of the NGF
Subject to regulations made for the purposes of this section, the following are to be paid out of the NGF, in such order as the SEGC considers appropriate: (a) amounts, including costs, disbursements…
Section 889I — Minimum amount of the NGF
(1) The minimum amount in relation to the NGF is: (a) unless paragraph (b) applies—$80,000,000; or (b) if a determination is in force under subsection (2)—the amount specified in the determination.…
Section 889J — Levy by the SEGC
(1) If the amount in the NGF is less than the minimum amount applicable under section 889I, the SEGC may determine in writing that: (a) the operators of all, or a class, of the financial markets to…
Section 889K — Levy by market operator
(1) An operator of a financial market who must pay an amount of levy (the primary levy amount) under section 889J may determine in writing that participants in the market must pay a levy (the…