Document ID: chunk:federal_register_of_legislation:C2025C00185:section:912d:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 912D (pt 2/2)
Character Range: 3675228–3677522

the ASIC Act referred to in paragraphs (a), (b), (c) and (d) of the definition of financial services law in section 761A.
 (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 the 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 subsection 1041H(1) of this Act or subsection 12DA(1) of the ASIC Act (misleading or deceptive conduct in relation to a financial product or a financial service); or
 (d) the breach results, or is likely to result, in material loss or damage to:
 (i) in the case of a managed investment scheme—a member or members of the scheme; or
 (ii) in the case of a superannuation entity—a member or members of the entity; or
 (iii) in all cases—a person or persons to whom the financial services licensee or a representative of the financial services licensee provides a financial product or a financial service as a wholesale or retail client; or
 (e) any other circumstances prescribed by the regulations for the purposes of this paragraph exist.
 (5) Otherwise, for the purposes of this section, a breach of a core obligation is significant having regard to the following:
 (a) the number or frequency of similar breaches;
 (b) the impact of the breach on the financial services licensee's ability to provide financial services covered by the licence;
 (c) the extent to which the breach indicates that the financial services licensee's arrangements to ensure compliance with those obligations are inadequate;
 (d) any other matters prescribed by regulations made for the purposes of this paragraph.
 (6) Regulations for the purposes of paragraph (4)(b) may prescribe a civil penalty provision to the extent that it relates to the following:
 (a) contraventions of specified provisions;
 (b) specified matters.