Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 827D

  (1)   The Reserve Bank may, by legislative instrument, determine standards for the purposes of ensuring that CS facility licensees conduct their affairs in a way that causes or promotes overall stability in the Australian financial system.

  (2)   The standards are to be complied with by:

  (a)   all CS facility licensees; or

  (b)   a specified class of CS facility licensees, in the case of a standard that is expressed to apply only in relation to that class.

  (2A)   If there is an inconsistency between the standards and any of the following:

  (a)   the CS facility rules;

  (b)   the CS services rules;

  (c)   the derivative transaction rules;

  (d)   the derivative trade repository rules;

the standards prevail to the extent of the inconsistency.

  (3)   Before the Reserve Bank determines a standard, it must consult with:

  (a)   the CS facility licensees that will be required to comply with the standard; and

  (b)   ASIC.

  (4)   A standard may impose different requirements to be complied with in different situations or in respect of different activities.

  (5)   A standard:

  (a)   comes into force:

  (i)   unless subparagraph   (ii) applies--on the day on which the determination of the standard is made; or

  (ii)   if that determination specifies a later day as the day on which the standard comes into force--on the day so specified; and

  (b)   continues in force until it is revoked.

  (6)   The Reserve Bank may vary a standard by legislative instrument. Before it does so, it must consult with:

  (a)   the CS facility licensees that will be required to comply with the standard if it is varied as proposed; and

  (b)   ASIC.

  (7)   If the Reserve Bank determines or varies a standard, it must, as soon as practicable, give a copy of the standard, or of the variation, to the following:

  (a)   each CS facility licensee to which the standard applies;

  (b)   the Minister;

  (c)   ASIC.

  (8)   The Reserve Bank may revoke a standard by legislative instrument.

  (9)   If the Reserve Bank revokes a standard, it must, as soon as practicable, give notice of the revocation of the standard to the following:

  (a)   each CS facility licensee to which the standard applied;

  (b)   the Minister;

  (c)   ASIC.