FMI reform implementation
We are working to implement the financial market infrastructure (FMI) regulatory reform under new legislation. FMIs and their stakeholders including shareholders, should review the new provisions and consider any impacts for their business and operations.
On 17 September 2024 the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (the Bill) received the Royal Assent and became an Act. The table below broadly sets out when the provisions in the Act commence.
|
Items in the Act |
Commencement date |
|
FMI provisions in Schedules 1-3 of the Act |
17 September 2024 (the date of the Royal Assent) or shortly thereafter |
|
‘Fit, proper, capable and competent person standards’ |
6 months after 17 September 2024 (the date of the Royal Assent) |
The laws apply in Australia at the commencement date and industry will need to be familiar, and comply, with these new provisions.
We are working on implementing the FMI regulatory reform as contained in the Act including designing new elements of our licensing and supervisory approach.
We will update this webpage with further developments on our work to support industry to comply with the enhanced regulatory framework for FMIs.
Background
FMIs are the key entities that enable, facilitate, and support trading in Australia’s capital markets. FMIs include financial market operators, benchmark administrators, clearing and settlement (CS) facilities, derivative trade repositories and benchmark administrators.
On 27 March 2024, the Australian Government introduced the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (the Bill) into the Australian Parliament. On 9 September 2024 the Australian Parliament passed the Bill and on 17 September 2024 the Bill received the Royal Assent becoming an Act.
The Act implements the Financial Market Infrastructure Regulatory Reforms: Advice to Government from the Council of Financial Regulators, July 2020 which made sixteen recommendations to Government.
The Act:
- introduces a crisis management and resolution regime;
- enhances ASIC’s and the RBA’s licensing, supervisory and enforcement powers, which will provide ASIC with more capacity to monitor the ongoing conduct of FMI entities, identify risks as they emerge, and take appropriate action to prevent those risks from escalating; and
- streamlines and transfers roles and responsibilities between the Minister, ASIC and the RBA.