ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Settlement) Instrument 2025/257
I, Benjamin Cohn-Urbach, delegate of the Australian Securities and Investments Commission, make the following notifiable instrument.
Date 21 May 2025
Benjamin Cohn-Urbach
Contents
Part 1—Preliminary 3
1 Name of notifiable instrument....................................3
2 Commencement...............................................3
3 Authority....................................................3
4 Definitions...................................................3
Part 2—Exemption 3
5 Temporary exemption from certain CS Services Rules.................3
6 Conditions for exemption........................................3
Part 3—Repeal 4
7 Repeal.......................................................4
Part 1—Preliminary
1 Name of notifiable instrument
This is the ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Settlement) Instrument 2025/257.
2 Commencement
This instrument commences on the day after it is registered on the Federal Register of Legislation.
Note: The register may be accessed at www.legislation.gov.au.
3 Authority
This instrument is made under subsection 828R(2) of the Corporations Act 2001.
4 Definitions
In this instrument:
Act means the Corporations Act 2001.
ASX Settlement means ASX Settlement Pty Limited ACN 008 504 532.
CS Services Rules means the ASIC CS Services Rules 2025.
representative body means the representative body or bodies referred to in subrule 2.1.2(1) of the CS Services Rules.
Part 2—Exemption
5 Temporary exemption from certain CS Services Rules
Subject to section 6, ASX Settlement does not need to comply with the following CS Services Rules until 1 July 2025:
- paragraph 2.2.1(2)(d);
- paragraph 2.2.1(2)(f); and
- paragraph 2.2.1(2)(g).
6 Conditions for exemption
The exemption in section 5 is conditional on ASX Settlement taking reasonable steps (including undertaking consultation with its representative body) to finalise by 1 July 2025 the policies and procedures required under paragraphs 2.2.1(2)(d) and 2.2.1(2)(f) of the CS Services Rules.
Note: Policies and procedures can be multiple documents or one that covers the requirements of paragraphs 2.2.1(2)(d) and 2.2.1(2)(f) of the CS Services Rules.
Part 3—Repeal
7 Repeal
This instrument is repealed at the start of 1 July 2025.
Overview
The ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Settlement) Instrument 2025/257, enacted on 21 May 2025 by Benjamin Cohn-Urbach, a delegate of the Australian Securities and Investments Commission (ASIC), provides a temporary exemption for ASX Settlement from certain provisions of the ASIC CS Services Rules 2025. This exemption is intended to alleviate a specific compliance burden on ASX Settlement, allowing it to finalise necessary policies and procedures by 1 July 2025 without immediate compliance with the exempted CS Services Rules. The exemption is made under the authority of subsection 828R(2) of the Corporations Act 2001, reflecting a policy objective to balance regulatory compliance with practical operational requirements. This instrument is set to be repealed at the commencement of 1 July 2025, ensuring that the temporary relief is strictly time-bound and does not undermine the overarching regulatory framework.
Scope and Application
The ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Settlement) Instrument 2025/257 applies to ASX Settlement Pty Limited, which is specifically identified by its Australian Company Number (ACN) in the instrument. This legislation is enacted under the authority of subsection 828R(2) of the Corporations Act 2001, indicating its jurisdictional reach within the Commonwealth of Australia. The exemption provided by this instrument is temporary and is specifically tailored to allow ASX Settlement to not comply with certain CS Services Rules until 1 July 2025. The exemption is conditional upon ASX Settlement finalising the necessary policies and procedures required under the CS Services Rules by the aforementioned date. This notifiable instrument is repealed at the commencement of 1 July 2025, effectively ending its application and the temporary exemption it provides.
Key Provisions
The ASIC Corporations (ASIC CS Services Rules Limited Exemption–ASX Settlement) Instrument 2025/257 provides for a temporary exemption from certain CS Services Rules for ASX Settlement, effective from the day after its registration until 1 July 2025. Specifically, under section 5, ASX Settlement 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 during this period. This exemption is subject to certain conditions outlined in section 6, requiring ASX Settlement to finalise, by 1 July 2025, the necessary policies and procedures as stipulated in paragraphs 2.2.1(2)(d) and 2.2.1(2)(f) of the CS Services Rules. Consultation with its representative body is also required as part of these reasonable steps.
In terms of obligations, ASX Settlement must ensure that by 1 July 2025, it has finalised the required policies and procedures. These policies and procedures can either be multiple documents or a single document that addresses the requirements outlined in paragraphs 2.2.1(2)(d) and 2.2.1(2)(f) of the CS Services Rules. Failure to meet these conditions could result in non-compliance with the CS Services Rules, potentially leading to enforcement actions by the Australian Securities and Investments Commission (ASIC).
The instrument also stipulates that it will be repealed at the start of 1 July 2025, as indicated in section 7. This means that after this date, ASX Settlement will no longer benefit from the temporary exemption and must fully comply with all relevant CS Services Rules.
The notifiable instrument imposes no specific penalties or consequences for breach of its provisions beyond the general compliance requirements of the CS Services Rules. However, if ASX Settlement fails to meet the conditions for exemption by 1 July 2025, it risks non-compliance with the CS Services Rules, which could attract penalties under the Corporations Act 2001, including fines and other sanctions as determined by ASIC. The exact penalties for non-compliance with the CS Services Rules are not specified within this instrument but would be in accordance with the general regulatory framework governing financial services in Australia.