Source: http://www.treasury.gov.au/publication/guidelines-for-the-exercise-of-powers-delegated-to-asic-2017/1-background
Timestamp: 2019-11-13 18:45:34
Document Index: 185543928

Matched Legal Cases: ['arts 7', 'arts 7', 'art 7', 'art 7', 'art 7', 'art 7']

1. Background | Treasury.gov.au
The Corporations Act 2001 (the Corporations Act) ascribes the responsible Minister powers relating to the regulation of financial markets and financial market infrastructures (FMIs) — clearing and settlement (CS) facilities and trade repositories.
Some of the powers the Minister has in respect of licensing of financial markets and CS facilities are the power to grant, impose or vary conditions on a licence and suspend or cancel a licence. The Minister also has powers to exempt or partially exempt financial markets and CS facilities from market licensing requirements and powers to exempt or partially exempt financial markets and CS facilities from compensation arrangement requirements
The Minister has also the power to disallow changes to operating rules of financial markets and CS facilities.
Under the Corporations Act, the Australian Securities and Investments Commission (ASIC) has a role in the regulatory matters, which includes providing advice to the Minister about applications for a market licence and changes to operating rules and enforcing market licensees’ compliance with their obligations.
In accordance with section 1101J of the Corporations Act, the responsible Minister – at the time of writing, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP – has delegated some of the regulatory matters to authorised ASIC officers by way of an instrument (the Delegation Instrument).
Under Parts 7.2, 7.2A, 7.3 and 7.5 of the Corporations Act, the Minister has powers relating to the licensing, operating rules and compensation arrangements of financial markets and CS facilities and ASIC supervision of licensed markets. The powers under these parts that have been delegated are outlined in Table 1.
Table 1. Delegated powers under Parts 7.2, 7.2A, 7.3 and 7.5 of the Corporations Act
Issue/revoke exemption from all or specified provisions of Part 7.2 (licensed markets) or Part 7.3 (licensed CS facilities) and vary/revoke an exemption 791C 820C
Issue/revoke exemption from all or specified provisions of Part 7.2A (market supervision) and vary/revoke an exemption 798M
Issue/revoke exemption from all or specified provisions of Part 7.5 (compensation regimes) and vary/revoke an exemption 893B
These guidelines set out the approach that the delegate is expected to take in exercising the delegated powers and have been issued by the Minister in conjunction with the Delegation Instrument. Therefore, these guidelines describe:
the matters the delegate should or must consider when exercising the delegated powers, including the appropriate timeframes for exercising the delegated powers;
the reporting requisite for the delegate to provide a quarterly report on both: upcoming regulatory matters which will require the exercise of the delegated powers over the next quarter, and regulatory matters for which the delegate has exercised the delegated powers over the previous quarter;
the procedure for allowing the Minister to ‘call up’ (request) regulatory matters for which the Minister deems that it is appropriate that he or she should exercise his or her powers instead of the delegate; and
other matters regarding the Minister’s rights during the delegation and vary or revoke the delegation.