(1) A body corporate that proposes to be a futures association may apply to ASIC in writing for approval by the Minister as a futures association. (2) Where a body applies under subsection (1), the Minister may by writing approve the body as a futures association if, and only if, he or she is satisfied:

(c)

that the body's nature is such that the body may properly exercise its functions as a futures association, being the functions of:

(i)

regulating the association's affairs in the interests of the public; and

(ii)

administering and enforcing the association's business rules; and

(d)

that the body's business rules make satisfactory provision:

(i)

for the admission as members of persons licensed, or proposing to apply to be licensed, under Part 8.3, or of a specified class of such persons; and

(ii)

for the qualifications for membership, including the necessary standards of training and experience for:

(A) responsible officers of bodies corporate that; and (B) natural persons who;

are, or propose to be, members; and

(iii)

for the manner in which members are to conduct their business of dealing in futures contracts so as to ensure efficient, honest and fair practices in relation to such dealing; and

(iiia)

for the exclusion of a body corporate from membership where a responsible officer of the body corporate would be excluded from membership; and

(iv)

for the exclusion of a person from membership where:

(A) if the person is a body corporate—a responsible officer, or an employee, of the body corporate; or (B) otherwise—the person or an employee of the person;

is not of good character and high business integrity; and

(v)

for the expulsion, suspension or disciplining of a member for conduct inconsistent with just and equitable principles in the transaction of business or for a contravention of the body's business rules or of this Chapter; and

(vi)

for an appropriate mechanism whereby a person whose application for membership of the body is refused, or whose membership of the body is cancelled or suspended, in circumstances where the person does not have a right to appeal to the Court under subsection 1135(1) against the decision to refuse the application, or to cancel or suspend the membership, as the case may be, may appeal against the decision; and

(vii)

for an appropriate mechanism whereby a person who has been disciplined by the body otherwise than by way of cancellation or suspension of the person's membership of the body may appeal against the decision to discipline the person; and

(viii)

for the inspection and audit of the financial records that this Chapter requires members to keep; and

(x)

prohibiting a member from accepting or executing, otherwise than in accordance with the business rules, instructions from another person to deal in futures contracts; and

(xi)

prohibiting a member from dealing in futures contracts on behalf of another person otherwise than in accordance with instructions accepted by the member from the person; and

(xii)

prohibiting a member from dealing in futures contracts, on behalf of another person, on a futures market of a futures exchange or of a recognised futures exchange, otherwise than in accordance with the business rules of the futures exchange or recognised futures exchange, as the case may be; and

(xiii)

prohibiting a member, except as permitted by the business rules, from executing the instructions of another person to deal in futures contracts unless the instructions are executed in such a manner that the dealing is effected on a futures market of a futures exchange or of a recognised futures exchange or on an exempt futures market; and

(xiv)

for the equitable and expeditious settlement of claims and grievances between members, being claims and grievances relating to the transaction of business by members in their capacity as members; and

(xv)

for appropriate mechanisms for the conciliation and settlement of disputes between members and their clients, being disputes concerning dealings in futures contracts by members on behalf of their clients or concerning transactions between members and their clients in connection with such dealings;

(e)

if the body is expected to be a futures organisation within the meaning of Part 8.6—that:

(i)

there will be enough money in the body's fidelity fund to make the payments out of the fund that may reasonably be expected to be necessary for the purposes of Part 8.6; or

(ii)

the body will enter into a contract, in a form approved by the Minister, with an insurer approved by the Minister, under which the insurer undertakes to supplement the fund, if a claim is made on the fund, so that the total amount available to satisfy the claim will be not less than an amount so approved; and

(f)

that the interests of the public will be served by granting the application.