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 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

Division 8 - Cross-border crisis resolution  

SECTION 847A   RESERVE BANK MAY RECOGNISE CRISIS RESOLUTION OF FOREIGN OPERATOR OF A CLEARING AND SETTLEMENT FACILITY  

847A(1)    
Subject to subsection (6) , the Reserve Bank may take action in accordance with this Part in relation to a CS facility licensee whose licence was granted under subsection 824B(2) (overseas clearing and settlement facilities) if an instrument made under subsection (2) of this section is in force in relation to the licensee.

Recognition of requests

847A(2)    
For the purposes of subsection (1) , the Reserve Bank may, by notifiable instrument, recognise a request by an authority that is responsible for regulating the operation of a clearing and settlement facility by a CS facility licensee in a foreign jurisdiction, if:

(a)    the Reserve Bank reasonably believes that the authority:

(i) is exercising; or

(ii) intends to exercise; or

(iii) is considering exercising;

powers to manage or respond to an event relating to the licensee that is likely to pose a threat to the stability of the financial system in the foreign jurisdiction; and

(b)    the request is for the Reserve Bank to exercise powers under this Part to assist the authority to manage or respond to the event.

847A(3)    
The Reserve Bank may, by notifiable instrument, revoke an instrument made under subsection (2) recognising a request by an authority in relation to a CS facility licensee if:

(a)    the authority terminates or withdraws the request; or

(b)    the Reserve Bank no longer reasonably believes that the authority:

(i) is exercising; or

(ii) intends to exercise; or

(iii) is considering exercising;

powers to manage or respond to an event relating to the licensee that is likely to pose a threat to the stability of the financial system in the foreign jurisdiction.

847A(4)    
Subsection (3) does not limit the application of subsection 33(3) of the Acts Interpretation Act 1901 in relation to an instrument in force under subsection (2) of this section.

Responding to requests

847A(5)    
Subject to subsection (6) , if the condition in subsection (1) is satisfied in relation to a CS facility licensee (the overseas licensee ), this Part applies in relation to the overseas licensee as if:

(a)    a reference in this Part to managing or responding to a condition in section 831A being satisfied in relation to a CS facility licensee were a reference to responding to the request mentioned in subsection (2) of this section in relation to the overseas licensee; and

(b)    a reference in this Part to a condition in section 831A not being satisfied in relation to a CS facility licensee were a reference to the instrument made under subsection (2) of this section in relation to the overseas licensee having been revoked.

Excluded provisions

847A(6)    
A reference in this section to this Part does not include a reference to:

(a)    Division 3 (statutory management); or

(b)    section 837A (compulsory transfer of shares); or

(c)    Division 7 (funding for crisis resolution); or

(d)    section 849AA (winding up).