Commonwealth Consolidated Acts

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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), the Minister must treat the application as also being an application for approval of the compensation arrangements and, for that purpose, must consider whether the proposed arrangements are adequate.

             (2)  If the Minister does not consider that the proposed compensation arrangements are adequate, the application for the licence must be rejected.

             (3)  If the Minister considers that the proposed compensation arrangements are adequate, the Minister may (subject to the other provisions about granting licences) grant the licence. On the granting of the licence, the Minister is taken to have approved the compensation arrangements.

Note:          The other provisions about granting licences are in Subdivision A of Division 4 of Part 7.2.

             (4)  In the conditions of the licence, the Minister must:

                     (a)  deal with the minimum amount of cover required in relation to the compensation arrangements in such manner as the Minister thinks appropriate; and

                     (b)  identify the source of funds available to cover claims, on the basis of which the Minister approves the arrangements (see section 885H).

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