Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 786

786. (1) A licence is subject to:

   (a)  such conditions and restrictions as are prescribed; and

   (b)  subject to section 837, such conditions and restrictions as the
        Commission imposes when granting the licence or at any time when the
        licence is in force.

(2) Without limiting the generality of subsection (1), conditions and
restrictions referred to in paragraph (1) (a) or (b) may include:

   (a)  conditions and restrictions relating to the limitation of the
        liability that may be incurred by the holder of a dealers licence in
        connection with a business of dealing in securities;

   (b)  conditions and restrictions relating to the incurring and disclosure
        of liabilities arising otherwise than in connection with a business of
        dealing in securities;

   (c)  conditions and restrictions relating to the financial position of the
        holder of a dealers licence, whether in relation to the business of
        dealing in securities carried on by the holder or otherwise;

   (d)  a condition requiring the holder of a dealers licence or of an
        investment advisers licence to lodge and maintain with the Commission
        a security approved by the Commission for such amount not exceeding
        the prescribed amount as is, from time to time, determined by the
        Commission in relation to the holder of that licence;

   (e)  conditions about what the holder of a licence is to do, by way of
        supervision and otherwise, in order to prevent the holder's
        representatives from contravening:

        (i)    a securities law; or

        (ii)   another condition of the licence; and

   (f)  conditions about what the holder of a licence is to do to ensure that
        each representative of the holder has adequate qualifications and
        experience having regard to what the representative will do on the
        holder's behalf in connection with a securities business or investment
        advice business carried on by the holder.

(3) Without limiting the generality of paragraph (2) (c), the conditions
referred to in that paragraph may include:

   (a)  a condition that the assets of the holder of a dealers licence
        include, or do not include, assets of a particular kind or kinds; and

   (b)  a condition that the sum of the values of the assets of a particular
        kind or kinds included in the assets of the holder of a dealers
        licence be not less than, or not more than, an amount ascertained in
        accordance with the condition.

(4) A condition referred to in paragraph (3) (b) may provide for the values of
assets of a dealer for the purposes of the application of that condition to be
ascertained in a manner specified in, or determined in accordance with, the
condition.

(5) The provision that may be made in a condition referred to in paragraph (3)
(b) for ascertaining the amount referred to in that paragraph may be, but is
not limited to, a provision that the amount shall be:

   (a)  a specified percentage of the sum of the values of all the assets of
        the holder of a dealers licence;

   (b)  a specified percentage of the sum of the values of all the assets of
        the holder of the dealers licence that are included in a specified
        class or classes of those assets;

   (c)  a specified percentage of the sum of the amounts of all the
        liabilities of the holder of the dealers licence; or

   (d)  a specified percentage of the sum of the amounts of all the
        liabilities of the holder of the dealers licence that are included in
        a specified class or classes of those liabilities.

(6) A reference in this section to the assets of the holder of a dealers
licence is a reference to all the assets of the holder of the licence, whether
or not the assets are used in, or in connection with, the business of dealing
in securities carried on by the holder.

(7) Subject to section 837, the Commission may, at any time, revoke or vary
conditions or restrictions imposed under paragraph (1) (b).

(8) Where the Commission imposes, or varies or revokes, conditions or
restrictions under this section in relation to a licence granted to a member
of a securities exchange, the Commission shall inform the securities exchange
and, if the member is a partner in a member firm, the member firm.

(9) Where a security is lodged with the Commission pursuant to a condition to
which a licence is subject in accordance with paragraph (2) (d), the security
may be applied by the Commission in such circumstances, for such purposes and
in such manner as is prescribed.