Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Outline
The Bill amends the Australian Prudential Regulation Authority Act 1998, Australian Securities and Investments Commission Act 2001 , the Corporations Act 2001 , the Mutual Assistance in Business Regulation Act 1992 , and the Reserve Bank Act 1959 to provide a legislative framework to implement Australia's G-20 commitments in relation to over-the-counter (OTC) derivatives reforms.
Date of effect : All of the amendments take effect on the 28th day after the Act receives Royal Assent.
While the amendments commence at this time, ASIC's derivative transaction rule making power will not be enlivened unless and until the has Minister prescribes a derivative class in respect of one or more of the trade reporting, clearing or execution mandates.
Trade repository licensing applications may be lodged from the date of commencement, subject to prescription or approval of the relevant form. However, ASIC would be unable to satisfy itself of the criteria for granting a licence until derivative trade repository rules (which set out the operational requirements of a licensee) are finalised.
Prohibitions will apply from the date of commencement on a person holding themselves out to be a licensed or prescribed facility for the purpose of any of the three mandates, when they are not a licensed or prescribed facility.
Prohibitions on operating an unlicensed trade repository will only come into effectonce regulations are made providing that specified classes of trade repository must be licensed.
Proposal announced : This measure was announced in a joint Media Release of the Deputy Prime Minister and Treasurer, the Minister for Financial Services and Superannuation and the Parliamentary Secretary to the Treasurer on 18 April 2012.
Financial impact : Nil.
Human rights implications : This Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to Error ! Reference source not found ..
Compliance cost impact : The compliance cost impact of these amendments is low. The compliance costs associated with regulations and rules made under the amendments may vary depending upon their terms.
Regulation impact statement
1.1 The Office of Best Practice Regulation (OBPR)has advised that a Regulation Impact Statement (RIS) is not required for this Bill. However, subsequent RISs will be required for the implementation of further regulatory proposals that will give effect to the broader framework established by the Bill.