Document ID: chunk:federal_register_of_legislation:C2005C00499:clause:1_1428
Version: federal_register_of_legislation:C2005C00499
Segment Type: clause
Provision Reference: sch 1 cl 1428
Character Range: 114650–116510

1428  Section 1425 facilities—additional provisions relating to previously unregulated services

 (1) This section applies to a clearing and settlement facility in relation to which the following paragraphs are satisfied:
 (a) a licence is granted under section 1425 to the operator of the facility; and
 (b) the conditions on the licence specify, as the classes of financial products in respect of which the facility can provide services, the classes of financial products specified in whichever of paragraphs 1425(5)(a) and (b) is applicable; and
 (c) the facility also, immediately before the commencement, provided services in respect of one or more other classes of financial products (the additional products) and the fact that it did so did not constitute a contravention of a provision of the old Corporations Act.

 (2) Subject to subsection (3), section 820A of the amended Corporations Act does not apply in relation to the facility in so far as it provides services in respect of all or any of the additional products during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:
 (a) the end of the period of 2 years starting on the FSR commencement;
 (b) the licensee applies, under subsection 825A(2) of the amended Corporations Act, to have the conditions on the licence varied or revoked, or to have additional conditions imposed on the licence.

 (3) The regulations may provide that specified provisions of the amended Corporations Act (including section 820A), and any associated provisions, apply in relation to a clearing and settlement facility to which this section applies, and its provision of services in respect of all or any of the additional products, during some or all of the transition period for the facility and the products with specified modifications.