Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:201:p7
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 201 (pt 7/26)
Character Range: 1623246–1626021

Bank International receives a request for an Australian entity to become a CLS participant in the facility it operates;
 (b) CLS Bank International proposes approving an additional Australian entity or Australian resident as a shareholder;
 (c) CLS Bank International notifies the Board of Governors of the Federal Reserve System of the United States of America of a proposed change in the character or nature of the facility or a significant change in its operations;
 (d) material regulatory action is taken against CLS Bank International in any other jurisdiction.
 (6) In this regulation:
Australian entity includes:
 (a) an Australian ADI that is permitted under section 66 of the Banking Act 1959 to assume or use:
 (i) the word bank, banker or banking; or
 (ii) any other word (whether or not in English) that is of like import to a word referred to in subparagraph (i); or
 (b) a financial services licensee.
CLS participant in the facility operated by CLS Bank International means a person who, under the facility's operating rules, is allowed to participate directly in the facility, with or without the authority of another such person.
material regulatory action, for the facility operated by CLS Bank International, means:
 (a) any action by the Board of Governors of the Federal Reserve System of the United States of America that requires CLS Bank International to cease, suspend or vary its operations or to take any other action in the nature of a sanction or corrective action in relation to either the operation of the facility or CLS Bank International; or
 (b) regulatory action that is likely to affect Australian CLS participants in the facility or any Australian operations of CLS Bank International.

9.12.03  Partial exemption of foreign‑based market licensees from certain notification obligations
 (1) This regulation sets out the extent to which, for section 1368 of the Act, specified provisions of the Act have effect in relation to a market licensee whose licence was granted under subsection 795B(2) of the Act.
 (2) Paragraph 792B(2)(b) of the Act has effect only to the extent that:
 (a) the participant in the market against whom disciplinary action is taken is in this jurisdiction; or
 (b) the activity giving rise to the disciplinary action may significantly affect:
 (i) another participant in the market who is in this jurisdiction; or
 (ii) a client, of a participant in the market, whom the market licensee believes to be in this jurisdiction.
 (3) Paragraph 792B(2)(c) of the Act has effect only to the extent that:
 (a) the person suspected of the contravention or impending contravention of the market's operating rules or the Act is a participant in the market who is in this jurisdiction; or
 (b) the contravention or impending