Document ID: chunk:federal_register_of_legislation:C2020A00135:clause:11_50a:p1
Version: federal_register_of_legislation:C2020A00135
Segment Type: clause
Provision Reference: sch 11 cl 50A (pt 1/2)
Character Range: 195982–198672

50A  What are reportable situations?
 (1) There is a reportable situation in relation to a licensee if one of the following paragraphs is satisfied:
 (a) the licensee or a representative of the licensee has breached a core obligation and the breach is significant;
 (b) the licensee or a representative of the licensee is no longer able to comply with a core obligation and the breach, if it occurs, will be significant;
 (c) the licensee or a representative of the licensee conducts an investigation into whether there is a reportable situation of the kind mentioned in paragraph (a) or (b) and the investigation continues for more than 30 days;
 (d) an investigation described in paragraph (c) discloses that there is no reportable situation of the kind mentioned in paragraph (a) or (b).
 (2) There is also a reportable situation in relation to a licensee if:
 (a) in the course of engaging in a credit activity, the licensee or a representative of the licensee has engaged in conduct constituting gross negligence; or
 (b) the licensee or a representative of the licensee has committed serious fraud; or
 (c) any other circumstances prescribed by the regulations for the purposes of this paragraph exist.
 (3) Each of the following is a core obligation:
 (a) an obligation under section 47, other than the obligation under paragraph 47(1)(d);
 (b) the obligation under paragraph 47(1)(d), so far as it relates to this Act, the Transitional Act and Division 2 of Part 2 of the ASIC Act and regulations made for the purpose of that Division;
 (c) the obligation under paragraph 47(1)(d), so far as it relates to Commonwealth legislation that is covered by paragraph (d) of the definition of credit legislation.
 (4) For the purposes of this section, a breach of a core obligation is taken to be significant if:
 (a) the breach is constituted by the commission of an offence under any law and the commission of the offence is punishable on conviction by a penalty that may include imprisonment for a maximum period of:
 (i) if the offence involves dishonesty—3 months or more; or
 (ii) in any other case—12 months or more; or
 (b) the breach is constituted by a contravention of a civil penalty provision under any law, other than a civil penalty provision prescribed by the regulations for the purposes of this paragraph; or
 (c) the breach is constituted by a contravention of a key requirement (as defined for the purposes of the National Credit Code), other than a key requirement prescribed by the regulations for the purposes of this paragraph; or
 (d) the breach is constituted by a contravention of subsection 12DA(1) of the ASIC Act (misleading or deceptive conduct in relation to