Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 901B

Requirements can only be imposed in relation to derivatives covered by a determination under this section

  (1)   The derivative transaction rules cannot impose execution requirements, reporting requirements, or clearing requirements, in relation to derivative transactions unless the derivatives to which the transactions relate are covered by a determination under this section that relates to requirements of that kind.

Minister may determine classes of derivatives in relation to which requirements may be imposed

  (2)   The Minister may, by legislative instrument, determine one or more classes of derivatives in relation to which execution requirements, reporting requirements, or clearing requirements, may be imposed.

Note 1:   Different determinations may be made in relation to the different kinds of requirements.

Note 2:   A class of derivatives can be described by reference to any matter, including (for example):

(a)   the kind of asset, rate, index or commodity to which the derivatives relate; or

(b)   the time when the derivatives were issued, or their date of maturity.

Making determinations: matters to which the Minister has regard

  (3)   In considering whether to make a determination under subsection   (2) that would have the effect of allowing the derivative transaction rules to impose requirements of a particular kind in relation to certain derivatives, the Minister:

  (a)   must have regard to:

  (i)   the likely effect on the Australian economy, and on the efficiency, integrity and stability of the Australian financial system, of allowing the derivative transaction rules to impose requirements of that kind in relation to those derivatives; and

  (ii)   the likely regulatory impact of allowing the derivative transaction rules to impose requirements of that kind in relation to those derivatives; and

  (iii)   if those derivatives are or include commodity derivatives--the likely impact, on any Australian market or markets on which the commodities concerned may be traded, of allowing the derivative transaction rules to impose requirements of that kind in relation to those commodity derivatives; and

  (b)   may have regard to any other matters that the Minister considers relevant.

Note:   Matters that the Minister may have regard to under paragraph   (b) may, for example, include:

(a)   any relevant international standards and international commitments; and

(b)   matters raised in consultations under subsection   (4), or in advice under subsection   (6).

Making determinations: obligation to consult

  (4)   The Minister must not make a determination under subsection   (2) unless the Minister has consulted ASIC, APRA and the Reserve Bank about the proposed determination.

  (5)   A failure to consult as required by subsection   (4) does not invalidate a determination.

ASIC, APRA or Reserve Bank may advise Minister

  (6)   ASIC, APRA or the Reserve Bank may (on its own initiative or at the request of the Minister):

  (a)   consider whether a determination should be made under subsection   (2) that would have the effect of allowing the derivative transaction rules to impose requirements of a particular kind in relation to certain derivatives; and

  (b)   advise the Minister accordingly.

Amendment and revocation of determinations

  (7)   The Minister may amend or revoke a determination under subsection   (2) in like manner and subject to like conditions (see subsections   33(3) and (3AA) of the Acts Interpretation Act 1901 ).