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

Schedule 3   Financial market infrastructure: transfer of powers

Part 1   Main amendments

Division 2   Licensing of CS facilities

Corporations Act 2001

68   After section 820C

Insert:

820CA Exemptions by Reserve Bank

Exemption of a particular clearing and settlement facility or person

(1) The Reserve Bank may, in writing, exempt:

(a) a particular clearing and settlement facility; or

(b) a particular person;

from:

(c) paragraph 821A(1)(aa) or (ab); or

(d) a provision of a standard determined under section 827D or 827DA.

(2) The exemption may apply:

(a) unconditionally or subject to specified conditions; and

(b) for a specified period or indefinitely (the exemption duration ).

(3) The Reserve Bank may, at any time, in writing:

(a) vary an exemption given under subsection (1) to:

(i) impose conditions, or additional conditions, on the exemption; or

(ii) vary or revoke any of the conditions on the exemption; or

(iii) extend or shorten the exemption duration (including as affected by any variation from a previous operation of this subparagraph); or

(b) revoke an exemption given under subsection (1).

(4) However, the Reserve Bank may only take action under subsection (3) after giving notice, and an opportunity to make submissions on the proposed action, to:

(a) if paragraph (1)(a) applies to the exemption - the operator of the clearing and settlement facility covered by the exemption; or

(b) if paragraph (1)(b) applies to the exemption - the person covered by the exemption.

(5) An exemption given under subsection (1), or a variation or revocation made under subsection (3), is not a legislative instrument.

(6) If the Reserve Bank gives an exemption under subsection (1), or varies or revokes an exemption under subsection (3), the Reserve Bank must publish notice of the exemption, variation or revocation on the Reserve Bank's website.

Exemption of classes of clearing and settlement facilities and persons

(7) The Reserve Bank may, by legislative instrument, exempt:

(a) a class of clearing and settlement facilities; or

(b) a class of persons;

from:

(c) paragraph 821A(1)(aa) or (ab); or

(d) a provision of a standard determined under section 827D or 827DA.

(8) The exemption may apply:

(a) unconditionally or subject to specified conditions; and

(b) for a specified period or indefinitely (the exemption duration ).

(9) The Reserve Bank may, at any time, by legislative instrument:

(a) vary an exemption given under subsection (7) to:

(i) impose conditions, or additional conditions, on the exemption; or

(ii) vary or revoke any of the conditions on the exemption; or

(iii) extend or shorten the exemption duration (including as affected by any variation from a previous operation of this subparagraph); or

(b) revoke an exemption given under subsection (7).

(10) However, the Reserve Bank may only take action under subsection (9) after:

(a) giving notice, and an opportunity to make submissions on the proposed action, to:

(i) if paragraph (7)(a) applies to the exemption - the operator of each clearing and settlement facility known by the Reserve Bank to be covered by the exemption; or

(ii) if paragraph (7)(b) applies to the exemption - each person known by the Reserve Bank to be covered by the exemption; and

(b) both:

(i) a notice has been published on the Reserve Bank's website allowing a reasonable period within which the operator of each clearing and settlement facility covered by the exemption, or each person covered by the exemption, (as applicable) may make submissions on the proposed action; and

(ii) that period has ended.