Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 4 - Other matters  

SECTION 827D   RESERVE BANK MAY DETERMINE FINANCIAL STABILITY STANDARDS  

827D(1)    

The Reserve Bank may, by legislative instrument, determine standards for the purposes of ensuring that CS facility licensees conduct their affairs in a way that causes or promotes overall stability in the Australian financial system.

827D(2)    
The standards are to be complied with by:

(a)    all CS facility licensees; or

(b)    a specified class of CS facility licensees, in the case of a standard that is expressed to apply only in relation to that class.

827D(2A)    

If there is an inconsistency between the standards and any of the following:

(a)    the CS facility rules;

(b)    the CS services rules;

(c)    the derivative transaction rules;

(d)    the derivative trade repository rules;

the standards prevail to the extent of the inconsistency.

827D(3)    
Before the Reserve Bank determines a standard, it must consult with:

(a)    the CS facility licensees that will be required to comply with the standard; and

(b)    ASIC.

827D(4)    
A standard may impose different requirements to be complied with in different situations or in respect of different activities.

827D(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.

827D(6)    

The Reserve Bank may vary a standard by legislative instrument. 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.

827D(7)    

If the Reserve Bank determines or varies a standard, it must, as soon as practicable, give a copy of the standard, or of the variation, to the following:

(a)    each CS facility licensee to which the standard applies;

(b)    

the Minister;

(c)    ASIC.

827D(8)    

The Reserve Bank may revoke a standard by legislative instrument.

827D(9)    

If the Reserve Bank revokes a standard, it must, as soon as practicable, give notice of the revocation of the standard to the following:

(a)    each CS facility licensee to which the standard applied;

(b)    

the Minister;

(c)    ASIC.

827D(10)    
(Repealed by No 87 of 2024, s 3, Sch 3[126] (effective 24 September 2024).)