ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Clear) Instrument 2025/256

Overview

The ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Clear) Instrument 2025/256 was enacted on 21 May 2025 by Benjamin Cohn-Urbach, a delegate of the Australian Securities and Investments Commission, to provide a temporary exemption for ASX Clear from certain compliance obligations under the ASIC CS Services Rules 2025. This exemption aims to alleviate some regulatory burdens while ASX Clear works on finalising necessary policies and procedures. The instrument is made under the authority of the Corporations Act 2001 and is designed to ensure that ASX Clear can continue its operations smoothly until it complies fully with the specified CS Services Rules by 1 July 2025. The exemption is contingent upon ASX Clear taking reasonable steps to complete the required policies and procedures by the stipulated date, thereby allowing for a controlled transition while maintaining regulatory standards.

Scope and Application

The ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Clear) Instrument 2025/256 applies specifically to ASX Clear Pty Limited, a company that operates under the auspices of the Australian Securities and Investments Commission (ASIC). This instrument provides a temporary exemption for ASX Clear from certain requirements under the ASIC CS Services Rules 2025 until 1 July 2025. The exemption applies to specific paragraphs within the CS Services Rules, namely paragraphs 2.2.1(2)(d), 2.2.1(2)(f), and 2.2.1(2)(g). The exemption is conditional on ASX Clear implementing necessary policies and procedures by the specified date. This exemption is limited to the Commonwealth jurisdiction and is made under the authority of subsection 828R(2) of the Corporations Act 2001, which governs corporate activities in Australia. This instrument is repealed as of 1 July 2025.

Key Provisions

The ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Clear) Instrument 2025/256 provides a temporary exemption for ASX Clear Pty Limited from certain compliance obligations under the ASIC CS Services Rules 2025 (sections 5 and 6). Specifically, ASX Clear is exempt from complying with paragraphs 2.2.1(2)(d), 2.2.1(2)(f), and 2.2.1(2)(g) of the CS Services Rules until 1 July 2025. This exemption is contingent on ASX Clear finalising the necessary policies and procedures by the specified date, which must be done through reasonable steps including consultation with its representative body (section 6). The exemption applies from the date immediately following the registration of the instrument on the Federal Register of Legislation, which can be accessed at www.legislation.gov.au (section 2). ASX Clear, as the entity benefiting from the exemption, is required to undertake certain actions to meet the conditions of the exemption. These include completing the development of the required policies and procedures by 1 July 2025, ensuring these policies and procedures are adequate to meet the compliance requirements of paragraphs 2.2.1(2)(d) and 2.2.1(2)(f) of the CS Services Rules, and engaging in consultation with its representative body as part of the process (section 6). Failure to meet these conditions could result in ASX Clear being required to comply with the CS Services Rules from the original effective date. Failure to comply with the conditions of the exemption, or non-compliance with the CS Services Rules by the effective date of 1 July 2025, could have significant legal implications for ASX Clear. Although specific penalties are not detailed in the notifiable instrument, general penalties for breaches of the Corporations Act 2001 may apply. These could include civil penalty provisions where a pecuniary penalty up to $210,000 may be imposed, or criminal penalties where a fine up to $210,000 for individuals and $1,050,000 for bodies corporate may be applicable, depending on the nature and severity of the breach. Additionally, ASX Clear could face reputational damage, regulatory scrutiny, and potential enforcement actions from the Australian Securities and Investments Commission (ASIC).