Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p106
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 106/148)
Character Range: 597268–600224

details of what the CS facility licensee knows.

7.3.04  Annual report of CS facility licensee
  For subsection 821E(2) of the Act, if an annual report by a CS facility licensee does not contain any of the following information, the information must accompany the annual report:
 (a) a description of the activities the CS facility licensee has undertaken in the financial year;
 (b) the resources (including financial, technological and human resources) that the CS facility licensee had available, and used, in order to ensure that it has complied with its obligations in Chapter 7 of the Act, and, in particular, the obligation contained in subparagraph 821A(1)(c)(i) of the Act;
 (c) an analysis of the extent to which the CS facility licensee considers that the activities undertaken, and resources used, have resulted in full compliance with all its obligations under Chapter 7 of the Act.

Division 2—Regulation of CS facility licensees: the facility's operating rules and procedures

7.3.05  Content of licensed CS facility's operating rules
  For subsection 822A(1) of the Act, the following matters are matters with which the operating rules of a licensed CS facility must deal:
 (a) the regulated services provided by the licensed CS facility, including the means by which obligations of parties to transactions relating to financial products will be met through the licensed CS facility;
 (b) matters relating to risk in the licensed CS facility;
 (c) access to the licensed CS facility, including the criteria for determining persons who are eligible to be participants and the ongoing requirements for participants;
 (d) suspension and expulsion of participants from the licensed CS facility;
 (e) disciplinary action against participants;
 (f) procedures, to be followed by participants, to address risks that are relevant to the licensed CS facility;
 (g) requirements to facilitate the monitoring of compliance by participants with the operating rules of the licensed CS facility;
 (h) the handling of defaults;
 (i) any obligations on participants and issuers that are necessary to ensure that the CS facility licensee is able to comply with subparagraph 821A(1)(c)(i) of the Act;
 (j) if the licensed CS facility is a prescribed CS facility—arrangements for the transfer of financial products that are likely to be transferred using the licensed CS facility.

7.3.06  Content of licensed CS facility's written procedures
  For subsection 822A(2) of the Act, the following matters are matters in respect of which a licensed CS facility must have written procedures:
 (a) arrangements to ensure the integrity and security of systems (including computer systems);
 (b) identifying and monitoring risks that are relevant to the licensed CS facility;
 (c) the development of rules and procedures to address those risks;
 (d) exchange of appropriate information with:
 (i) other clearing and settlement facilities; and
 (ii) financial markets;