Commonwealth Consolidated Acts

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Directions power--reduction of systemic risk

             (1)  If ASIC considers that a CS facility licensee has not done all things reasonably practicable to reduce systemic risk in the provision of the facility's services, ASIC may give the licensee a direction, in writing, to take:

                     (a)  specified measures to comply with the whole or a part of a standard determined under section 827D; or

                     (b)  any other action that ASIC considers will reduce systemic risk in the provision of the facility's services.

             (2)  The direction may deal with the time by which, or period during which, it is to be complied with. The time or period must be reasonable.

             (3)  The licensee must comply with the direction.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

          (3A)  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.

             (4)  ASIC may vary the direction by giving written notice to the licensee.

             (5)  The direction has effect until ASIC revokes it by giving written notice to the licensee.

             (6)  ASIC may revoke the direction if, at the time of revocation, it considers that the direction is no longer necessary or appropriate.

             (7)  Before giving, varying or revoking the direction, ASIC must consult the Reserve Bank of Australia. However, a failure to consult the Reserve Bank of Australia does not invalidate the direction, variation or revocation.

             (8)  The Reserve Bank of Australia may at any time request ASIC to make a direction under this section. However, ASIC is not required to comply with the request.

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