Clause 59

replace subsection (2) with —“(2) A person must not obtain effective control of the holder of a capital markets services licence that is a company, unless the person has obtained the prior approval of the Authority.”;

in subsection (3)(c), delete “or as may be specified in written directions by the Authority”;

after subsection (4), insert —“(4A) The Authority may at any time add to or vary any condition imposed under subsection (4) and the applicant must comply with the condition so added to or varied.(4B) The Authority may at any time revoke any condition imposed under subsection (4) (including a condition that has been added to or varied under subsection (4A)).”;

in subsection (5), after “subsection (4)”, insert “(including a condition that has been added to or varied under subsection (4A))”;

in subsection (6), replace paragraphs (a) and (b) with —“(a)a person has effective control of the holder of a capital markets services licence —

if the person, alone or acting together with any connected person, holds, directly or indirectly, 20% or more of the issued share capital of the holder;

if the person, alone or acting together with any connected person, controls, directly or indirectly, 20% or more of the voting power in the holder;

if the holder or its directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person (whether conveyed by the person alone or together with any other person, and whether with or without holding shares or controlling voting power in the holder); or

if the person (whether alone or acting together with any other person, and whether with or without holding shares or controlling voting power in the holder) is able to determine the policy of the holder; and”; and

after subsection (7), insert —“(8) Any person who fails to comply with a condition imposed under subsection (4) (including a condition added to or varied under subsection (4A)) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.”.