Key Documents
On 14 December 2022, the government announced that it will introduce the financial market infrastructure (FMI) reform package.
The package includes powers for the Reserve Bank of Australia (RBA) to step in and resolve a crisis at a domestic clearing and settlement facility to ensure the continuity of critical clearing functions, and to protect Australia's financial stability.
It also includes powers for the RBA to assist a foreign regulator to resolve an overseas clearing and settlement facility licenced in Australia.
The draft legislation strengthens and streamlines the Australian Securities and Investments Commission (ASIC) and the RBA’s licensing, supervisory and enforcement powers over FMIs and reallocates powers between the minister and regulators to better accord with their respective mandates.
The draft legislation also enhances regulator powers over foreign entities operating FMIs with a significant Australian nexus to ensure they are subject to appropriate oversight.
This package implements the recommendations from the Council of Financial Regulators (CFR) in their advice provided to government on the FMI crisis and supervisory reforms in July 2020.
The government welcomes comments or feedback from stakeholders on the draft legislation and accompanying explanatory materials.