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

9   After section 794A

Insert:

794AA ASIC's directions power - crisis resolution

(1) If the Reserve Bank, under subsection 849AB(1), requests ASIC to give a direction to a market licensee under this subsection to do, or to refrain from doing, specified things, ASIC may give the licensee a written direction to do, or to refrain from doing, those things.

(2) Without limiting subsection (1), the specified things may include:

(a) suspending dealings in a specified financial product or class of financial products; or

(b) taking:

(i) any actions; or

(ii) one or more specified actions;

relating to dealings in a specified financial product or class of financial products.

Example: Under paragraph (b), a direction could require the licensee to take actions to:

(a) limit the kinds of dealings that are allowed in a financial product or class of financial products; or

(b) require participants in a market to act in a specified manner in relation to dealings in a financial product or class of financial products.

(3) The direction must specify a reasonable time by which, or a reasonable period during which, it is to be complied with.

(4) The licensee must comply with the direction.

Note: Failure to comply with this subsection is an offence: see subsection 1311(1).

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

794AB 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 a market licensee under subsection 794AA(1), ASIC may vary the direction by giving written notice to the licensee.

(2) ASIC may revoke a direction given to a market licensee under subsection 794AA(1) by giving written notice to the licensee.

Notifying other affected persons

(3) As soon as practicable after:

(a) directing a market licensee under subsection 794AA(1) to do a thing mentioned in subsection 794AA(2); or

(b) varying or revoking such a direction;

ASIC must give written notice of the direction, variation or revocation to the operator of each clearing and settlement facility with which the market licensee has clearing and settlement arrangements for transactions effected through the market.

Directions are not legislative instruments

(4) A direction given under subsection 794AA(1), a variation under subsection (1) of this section, or a revocation under subsection (2) of this section is not a legislative instrument.