Notice of intention to issue a direction
(1) If ASIC considers that AFCA has not done all things reasonably practicable to ensure compliance with:
(a) the mandatory requirements for the AFCA scheme under section 1051; or
(b) a condition of the authorisation of the AFCA scheme imposed by the Minister under paragraph 1050(5)(b); or
(c) regulatory requirements issued under section 1052A;
ASIC may give AFCA written notice that it intends to give AFCA a specified direction under this section.
(2) The notice must set out:
(a) the specific measures that the direction will require AFCA to take to comply with the requirements or condition; and
(b) the reasons for ASIC's intention to give the direction.
Issuing a direction
(3) If, after receiving the notice:
(a) AFCA does not take those specific measures; and
(b) ASIC still considers that it is appropriate to give the direction to AFCA;
ASIC may give AFCA the direction, in writing, with a statement setting out the reasons for giving the direction.
(4) The direction must deal with the time by which, or the period during which, it is to be complied with. The time or period must be reasonable.
(5) A direction made under this section is not a legislative instrument.
(6) AFCA must comply with a direction made under this section.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).
(7) If AFCA fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that AFCA comply with the direction.
Varying or revoking a direction
(8) ASIC may vary a direction made under this section by giving written notice to AFCA.
(9) The direction has effect until ASIC revokes it by giving written notice to AFCA.
(10) ASIC may revoke the direction, by giving written notice to AFCA, if, at the time of revocation, ASIC considers that the direction is no longer necessary or appropriate.