Commonwealth Numbered Acts Commonwealth Numbered ActsPower of the Regulator to give direction
(1) The Regulator may give an accountable entity a direction of a kind specified in subsection (2) if the Regulator has reasonable grounds to believe that:
(a) the accountable entity has contravened a provision of this Act; or
(b) the accountable entity is likely to contravene a provision of this Act and the direction is reasonably necessary to ensure compliance with the provision; or
(c) an accountable person of the accountable entity, or of a significant related entity of the accountable entity, has contravened a provision of this Act; or
(d) an accountable person of the accountable entity, or of a significant related entity of the accountable entity, is likely to contravene a provision of this Act and the direction is reasonably necessary to ensure compliance with the provision.
Note 1: A decision to give a direction under this section is a reviewable decision (see Part 5 of this Chapter).
Note 2: For variation and revocation of a direction given under this section, see subsection 33(3) of the Acts Interpretation Act 1901 .
Kinds of direction
(2) The kinds of direction that the accountable entity may be given are directions to do, or to cause a significant related entity of the accountable entity to do, any one or more of the following:
(a) to take specified action to deal with the ground for giving the direction;
(b) to order an audit of the affairs of the accountable entity or significant related entity, at the expense of the accountable entity or significant related entity, by an auditor chosen by the Regulator;
(c) to make changes to the accountable entity's or significant related entity's systems, business practices or operations;
(d) to reconstruct, amalgamate or otherwise alter all or part of:
(i) the business, structure or organisation of the accountable entity or significant related entity; or
(ii) the business, structure or organisation of the accountable entity's relevant group;
(e) to do, or to refrain from doing, anything else in relation to the affairs of the accountable entity or significant related entity.
Note: For the definition of relevant group , see section 8.
(3) The direction must:
(a) be given by notice in writing to the accountable entity; and
(b) specify the ground referred to in subsection (1) as a result of which the direction is given; and
(c) specify the time by which, or period during which, the direction is to be complied with; and
(d) state that the accountable entity could commit an offence if the accountable entity fails to comply with the direction.
Note: See section 66 (offence for non-compliance with a direction).
(4) If the Regulator gives a direction under paragraph (1)(c) or (d), the Regulator must give a copy of the direction:
(a) to the accountable person; and
(b) if the accountable person is an accountable person of a significant related entity of the accountable entity--to the significant related entity.
Power to comply
(5) The accountable entity has power to comply with the direction despite anything in its constitution or any contract or arrangement to which it is a party.
(6) If the direction requires the accountable entity to cause a significant related entity to do, or to refrain from doing, an act or thing:
(a) the accountable entity has power to cause the significant related entity to do, or to refrain from doing, the act or thing; and
(b) the significant related entity has power to do, or to refrain from doing, the act or thing;
despite anything in the significant related entity's constitution or any contract or arrangement to which the significant related entity is a party.
Direction not a legislative instrument
(7) A direction under subsection (1) is not a legislative instrument.
Note: Under paragraph 11(2)(c) of the Legislation Act 2003 , the Regulator may register a direction under this section as a notifiable instrument.