Disclosure to certain financial bodies
50 Disclosure to certain financial bodies
Scope
This section applies if the Chair of the Regulator is satisfied that particular protected information, or a particular class of protected information, will enable or assist a body corporate that:
either:
conducts, or is involved in the supervision of, a financial market; or
is a body corporate that holds an Australian CS facility licence or an Australian derivative trade repository licence, or that operates a prescribed derivative trade repository; and
is specified in the regulations;
to monitor compliance with, enforce, or perform functions or exercise powers under:
the Corporations Act 2001; or
the business law of a State or Territory; or
the business law of a foreign country; or
the operating rules (if any) of the body corporate.
Disclosure
If an official of the Regulator is authorised by the Chair of the Regulator, in writing, for the purposes of this section, the official may disclose that protected information, or protected information included in that class of protected information, as the case may be, to the body corporate.
Conditions
The Chair of the Regulator may, by writing, impose conditions to be complied with by the body corporate and its officers, employees and agents in relation to protected information disclosed to the body corporate under subsection (2).
A person commits an offence if:
the person is subject to a condition under subsection (3); and
the person engages in conduct; and
the person’s conduct breaches the condition.
Penalty: Imprisonment for 2 years or 120 penalty units, or both.
An instrument under subsection (3) is not a legislative instrument.
Secondary disclosure and use
A person commits an offence if:
the person is:
a body corporate; or
an officer, employee or agent of a body corporate; and
protected information has been disclosed under subsection (2) to the body corporate; and
the person:
discloses the information to another person; or
uses the information.
Penalty: Imprisonment for 2 years or 120 penalty units, or both.
Exceptions
Each of the following is an exception to the prohibition in subsection (6):
the disclosure or use is with the consent of the Chair of the Regulator;
the disclosure or use is for the purpose of monitoring compliance with, enforcing, or performing functions or exercising powers under:
the Corporations Act 2001; or
the business law of a State or Territory; or
the business law of a foreign country; or
the operating rules (if any) of the body corporate.
A defendant bears an evidential burden in relation to a matter in subsection (7) (see subsection 13.3(3) of the Criminal Code).
Meaning of expressions
In this section, the following expressions have the same meanings as in Chapter 7 of the Corporations Act 2001:
Australian CS facility licence;
Australian derivative trade repository licence;
financial market;
officer;
operating rules;
prescribed derivative trade repository.
This Act’s bill:Explanatory memorandumSecond reading speech
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