02/100 ASIC and RBA sign Memorandum of Understanding
Wednesday 20 March 2002
The Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia today released a Memorandum of Understanding covering their respective responsibilities under the Corporations Act in relation to licensed clearing and settlement facilities.
Under the new regulatory regime established by the Financial Services Reform Act (FSR Act), clearing and settlement facilities for financial markets must hold a licence.
ASIC is presently responsible for monitoring compliance with many of the legislative obligations imposed on licensed clearing and settlement facilities. With the commencement of the FSR Act, ASIC has new powers for the enforcement of compliance with these obligations.
Under the new regime the Reserve Bank receives new responsibilities to establish and monitor compliance with financial stability standards, as well as to ensure that clearing and settlement facilities do all things reasonably practicable in order to reduce systemic risk.
The Memorandum of Understanding sets out a framework for co-operation between ASIC and the Reserve Bank to help prevent unnecessary duplication of effort and to minimise the regulatory burden on licensed facilities.
It covers information sharing, notification and other arrangements intended to achieve these aims.
A copy of the memorandum is available on ASIC’s website at www.asic.gov.au.