24Suspension or cancellation after offering a hearing

24 Suspension or cancellation after offering a hearing (1) ASIC may suspend or cancel a registered person’s registration (subject to complying with subitem (3)) if: (a) the registered person has contravened an obligation under item 16 (which deals with general conduct obligations of registered persons); or (b) ASIC has reason to believe that the registered person is likely to contravene an obligation under that item; or (c) the application for the registration: (i) was false in a material particular or materially misleading; or (ii) omitted a material matter; or (d) if the registered person is not a single natural person—any of the matters set out in subitem (2) applies to any of the following persons: (i) if the registered person is a body corporate—a director or secretary of the body corporate who performs duties in relation to credit activities; (ii) if the registered person is a partnership or the trustees of a trust—a partner or trustee who performs duties in relation to credit activities. (2) For the purposes of paragraph (1)(d), the matters are the following: (a) a banning order or disqualification order under Part 2‑4 of the National Credit Act is in force against the person; (b) a banning order or disqualification order under Division 8 of Part 7.6 of the Corporations Act 2001 is in force against the person; (c) the person is banned from engaging in a credit activity under a law of a State or Territory; (d) an Australian financial services licence of the person is suspended, or has been cancelled within the last 7 years, under: (i) paragraph 915B(1)(d) or subparagraph 915B(4)(b)(iii) of the Corporations Act 2001 (which deals with suspension or cancellation because of mental or physical incapacity); or (ii) section 915C of the Corporations Act 2001 (which deals with suspension or cancellation after offering a hearing); (e) the person is insolvent; (f) the person is disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001; (g) the person is convicted of serious fraud; (h) the person is incapable of managing his or her affairs because of physical or mental incapacity. (2A) For the purposes of paragraph (2)(c), a reference to a credit activity in the definitions of banned from engaging in a credit activity under a law of a State or Territory and State or Territory credit licence in subsection 5(1) of the National Credit Act (as those definitions apply for the purposes of this Act because of subsection 4(2) of this Act) includes a reference to an activity that would be a credit activity if the new Credit Code had applied from the day section 3 of the National Credit Act commences. (3) ASIC may only suspend or cancel a person’s registration under this item after giving the person an opportunity: (a) to appear, or be represented, at a hearing before ASIC that takes place in private; and (b) to make submissions to ASIC on the matter.