Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (87 of 2024)

Schedule 1   Financial market infrastructure: resolution authority

Part 1   Crisis resolution

Corporations Act 2001

12   Before section 798K

Insert:

798JB ASIC's directions power - crisis resolution

(1) If the Reserve Bank, under subsection 849AB(1), requests ASIC to:

(a) give a direction to an entity under this subsection to suspend dealings in a financial product or class of financial products; or

(b) give some other direction to an entity under this subsection in relation to dealings in a financial product or class of financial products;

ASIC may give the direction, in writing, to the entity.

Note: ASIC may also, at the request of the Reserve Bank, give directions to entities that are market licensees under section 794AA. A failure to comply with a direction under that section is an offence: see subsection 1311(1).

(2) The entity must comply with the direction.

(3) If the entity fails to comply with the direction, ASIC may apply to the Court for, and the Court may make, an order that the entity comply with the direction.

798JC Matters relating to ASIC directions - crisis resolution

Variation or revocation

(1) If the Reserve Bank, under subsection 849AB(1), requests ASIC to vary a direction given to an entity under subsection 798JB(1), ASIC may vary the direction by giving written notice to the entity.

(2) ASIC may revoke a direction given to an entity under subsection 798JB(1) by giving written notice to the entity.

Directions are not legislative instruments

(3) A direction given under subsection 798JB(1), a variation under subsection (1) of this section, or a revocation under subsection (2) of this section is not a legislative instrument.