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

Schedule 1   Financial market infrastructure: resolution authority

Part 2   Crisis prevention

Corporations Act 2001

31   At the end of Division 4 of Part 7.3

Add:

827DA Reserve Bank may determine resolvability standards for CS facility licensees and certain related bodies corporate

(1) The Reserve Bank may, by legislative instrument, determine standards for the purposes of ensuring that:

(a) CS facility licensees; and

(b) related bodies corporate of CS facility licensees, being related bodies corporate that are incorporated in Australia;

conduct their affairs in a way that would assist the Reserve Bank to manage or respond to a condition in section 831A being satisfied in relation to a CS facility licensee.

(2) The standards are to be complied with by:

(a) both:

(i) all CS facility licensees; and

(ii) all related bodies corporate of those licensees, being related bodies corporate that are incorporated in Australia; or

(b) a specified class of those bodies corporate in the case of a standard that is expressed to apply only in relation to that class.

(3) Before the Reserve Bank determines a standard, it must consult with:

(a) the bodies corporate that will be required to comply with the standard; and

(b) ASIC.

(4) A standard may impose different requirements to be complied with in different situations or in respect of different activities.

(5) A standard:

(a) comes into force:

(i) unless subparagraph (ii) applies - on the day on which the determination of the standard is made; or

(ii) if that determination specifies a later day as the day on which the standard comes into force - on the day so specified; and

(b) continues in force until it is revoked.

(6) The Reserve Bank may, by legislative instrument, vary a standard. Before it does so, it must consult with:

(a) the CS facility licensees that will be required to comply with the standard if it is varied as proposed; and

(b) ASIC.

(7) The Reserve Bank may, by legislative instrument, revoke a standard. Before it does so, it must consult with ASIC.

Inconsistency with other rules

(8) If there is an inconsistency between the standards made under this section and any of the following:

(a) the standards made under section 827D;

(b) the derivative transaction rules;

(c) the derivative trade repository rules;

(d) the CS services rules;

(e) the CS facility rules;

the standards made under this section prevail to the extent of the inconsistency.

Overseas clearing and settlement facilities

(9) A reference in this section to a CS facility licensee does not include a reference to a CS facility licensee if the licensee's only Australian CS facility licence, or all of the licensee's Australian CS facility licences, are granted under subsection 824B(2) (overseas clearing and settlement facilities).

827DB Resolution planning

(1) The Reserve Bank may make a plan for the event that a condition in section 831A is satisfied in relation to a CS facility licensee.

(2) If the Reserve Bank makes a plan under subsection (1), the Reserve Bank may review, vary or revoke the plan.

(3) In making, reviewing, varying or revoking a plan under this section, the Reserve Bank may take account of any information that the Reserve Bank considers appropriate in making the plan.

(4) A plan made under this section is not a legislative instrument.