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

Schedule 2   Financial market infrastructure: new and enhanced regulatory powers

Part 8   Streamlining some of ASIC's existing directions powers

Corporations Act 2001

72   Section 904G

Repeal the section, substitute:

904G ASIC's directions power - licensees not complying with their obligations

(1) ASIC may, by written notice given to a derivative trade repository licensee, direct the licensee to:

(a) take one or more specified actions to promote compliance by the licensee with its obligations as a derivative trade repository licensee; or

(b) refrain from taking one or more specified actions to promote compliance by the licensee with those obligations;

if ASIC considers that the licensee is not complying with those obligations.

(2) The direction:

(a) must specify a reasonable time by which, or a reasonable period during which, it is to be complied with; and

(b) must include the reasons for the direction; and

(c) may deal with either or both of the matters in paragraphs (1)(a) and (b).

(3) The licensee must comply with the direction (even if, under subsection 904GA(1), the licensee has requested ASIC to refer the direction to the Minister).

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

(4) 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.

904GA Matters relating to ASIC directions - licensees not complying with their obligations

Referrals to the Minister

(1) If, at any time after a derivative trade repository licensee receives a direction under subsection 904G(1), the licensee requests in writing that ASIC refer the direction to the Minister, ASIC must do so immediately.

(2) The Minister may, if the Minister considers it appropriate after being referred the direction, direct ASIC to vary or revoke the direction.

(3) ASIC must comply with the direction given under subsection (2) immediately.

(4) A direction given under subsection (2) is not a legislative instrument.

Variations and revocations

(5) ASIC may vary or revoke a direction given under subsection 904G(1):

(a) in like manner; and

(b) subject to like conditions, except if a condition is contrary to a direction given under subsection (2) of this section;

(see subsection 33(3) of the Acts Interpretation Act 1901).

Notifying other affected persons

(6) As soon as practicable after:

(a) giving a direction under subsection 904G(1) to a derivative trade repository licensee; or

(b) varying or revoking such a direction;

ASIC must give written notice of the direction, variation or revocation to:

(c) the operator of each financial market with which the licensed derivative trade repository has arrangements to provide services relating to derivative trade data; and

(d) the operator of each clearing and settlement facility with which that repository has arrangements to provide services relating to derivative trade data.

Directions are not legislative instruments

(7) A direction given under subsection 904G(1) is not a legislative instrument.