29Secretary’s decision on suspension application

29 Secretary’s decision on suspension application

(1) If an entity makes an application in accordance with section 28, and gives any further information as required under section 78, the Secretary must decide whether to: (a) grant the application: (i) under subsection (2) in relation to the entity; or (ii) under subsection (3) in relation to a class of entities; or (b) refuse the application.

(2) The Secretary may, by written notice given to the entity, suspend section 7 for the entity in relation to the product, for a specified period, in accordance with the rules.

Note: A decision to suspend section 7 for a particular period is a reviewable decision and reasons and notice of review rights must be given (see sections 72 and 73).

(3) The Secretary may, on the Secretary’s own initiative, by notifiable instrument, suspend section 7 for a specified class of entities that includes the applicant, in relation to the product, for a specified period, in accordance with the rules.

(4) Without limiting what may be prescribed by rules for the purposes of subsections (2) and (3), the rules may prescribe any or all of the following:

(a) matters to which the Secretary may have regard or must take into account in deciding whether to grant an application or suspend section 7 for a class of entities that includes the applicant;
(b) circumstances in which the Secretary may or must grant an application;
(c) circumstances in which the Secretary may suspend section 7 for a class of entities.

(5) During the specified period, the entity to which the notice applies, or each entity in the class of entities to which the instrument applies, is not required to comply with section 7 in relation to the product.

Note: Even though they are not required to comply with section 7, entities remain subject to the minimum stockholding obligation in relation to the product within the meaning of section 9, and sections 15 and 16 continue to apply in relation to the entities, during a suspension.

(6) The specified period must not exceed 3 months. However, the Secretary may: (a) for a notice given to an entity under subsection (2)—grant a subsequent application or applications to suspend section 7 for the entity in relation to the product for consecutive periods, each not exceeding 3 months; or (b) for an instrument made under subsection (3)—make another instrument or instruments suspending section 7 for the class of entities in relation to the product for consecutive periods, each not exceeding 3 months.

(7) If the Secretary decides to suspend section 7 for a class of entities for a specified period, the Secretary must give the applicant and the other entities in the class written notice of the decision.