Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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 with this section.
(2) The application must:
(a) contain the information, in relation to the proposed compensation arrangements, required by regulations made for the purposes of this paragraph; and
(b) be accompanied by a copy of the proposed compensation rules.
Note: For fees in respect of lodging applications, see Part 9.10.
(3) If ASIC does not consider that the proposed compensation arrangements are adequate, the application for approval must be rejected.
(4) If ASIC considers that the proposed compensation arrangements are adequate, ASIC must:
(a) approve the compensation arrangements in writing; and
(b) vary the conditions of the operator's licence so as to:
(i) deal with the minimum amount of cover required in relation to the compensation arrangements in such manner as ASIC thinks appropriate; and
(ii) identify the source of funds available to cover claims, on the basis of which ASIC approves the arrangements (see section 885H).
(5) In varying licence conditions as mentioned in paragraph (4)(b), ASIC must proceed under section 796A as though the licensee had applied for the variation to be made.