Document ID: chunk:federal_register_of_legislation:C2024C00826:section:50a:p1
Version: federal_register_of_legislation:C2024C00826
Segment Type: section
Provision Reference: s 50A (pt 1/3)
Character Range: 141933–144606

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:
 (i) covered by paragraph (d) of the definition of credit legislation in subsection 5(1); and
 (ii) specified in regulations made for the purposes of this subparagraph;
 (d) an obligation of a representative of the licensee under this Act, the Transitional Act, Division 2 of Part 2 of the ASIC Act or regulations made for the purpose of that Division.
 (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