ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver Amendment Instrument 2025/153

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Legislation au F2025L00581 Not in force Legislative Instrument

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Explanatory Statement

 

ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153 

This is the Explanatory Statement for ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153.

This Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).

Summary

  1.              In 2019, ASIC Waiver 2019/576 (the Previous Waiver) was granted to Barclays Capital Asia Limited (BCAL):
    1.        under subrule 1.2.1(1) and Rule 1.2.3 of the ASIC Market Integrity Rules (Securities Markets – Capital) 2017 (Old Capital Rules): and
    2.       under subrule 1.2.1(1) and Rule 1.2.3 of the ASIC Market Integrity Rules (Securities Markets) 2017 (Securities Markets Rules)

(ASIC Waiver 2019/576 was subsequently amended by ASIC Waiver 2021/166.)

  1.              On 7 April 2022, BCAL lodged an application for an extension of the Previous Waiver. ASIC granted an extension of the Previous Waiver under ASIC Waiver 2022/516 (Existing Waiver). The Existing Waiver ceases to have effect on 1 July 2025.
  2.              The ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153 (this instrument) grants a waiver to BCAL, effective from the later of the date this instrument is registered and 1 July 2025 and operating until 1 July 2030. The waiver exempts BCAL from certain reporting requirements in the ASIC Market Integrity Rules (Capital) 2021 (Capital Rules) and the Securities Markets Rules. This instrument grants a waiver in substantially the same terms as the Existing Waiver.

Purpose of the instrument

  1.              BCAL is a company incorporated in Hong Kong. It is  a member of the Barclays Group of companies of which Barclays PLC is the parent. BCAL is registered as a foreign company in Australia (ARBN 625 731 295). BCAL is licensed by the Securities and Futures Commission of Hong Kong (SFC) to deal in securities and futures contracts, and to advise on securities and on corporate finance. BCAL is a participant of the financial market operated by ASX Limited, having been admitted on 22 August 2019.
  2.              In June 2019, ASIC granted the Previous Waiver relieving BCAL from certain rules in the Old Capital Rules and the Securities Markets Rules, relating to the calculation of foreign exchange exposure risks, and periodic (and contingent) reporting requirements. ASIC extended this waiver in 2022. The Previous Waiver and Existing Waiver were given in recognition that the reports required by the Capital Rules are based on Australian accounting standards, which are not used in Hong Kong where BCAL is based. For BCAL to retain professional accounting and auditing services for the small part of its business relating to the Australian securities markets would be overly burdensome and expensive. The waivers also recognise that the risk of BCAL holding positions in currencies denominated other than in Hong Kong dollars was more comparable to an Australian domiciled market participant holding positions in currencies denominated other than in Australian dollars.
  3.              The Existing Waiver is subject to conditions that BCAL:
    1.        uses an alternative calculation method for foreign exchange exposure under which currencies other than Hong Kong dollars are considered “foreign” to BCAL, rather than currencies other than Australian dollars;
    2.       develops an alternative net capital calculation; and
    3.        complies with alternative reporting mechanisms comprising periodic financial reports BCAL lodges in its home jurisdiction, as well as contingent reports related to any triggering of the alternative net capital calculation.
  4.              Due to the upcoming expiry of the Existing Waiver on 1 July 2025, BCAL applied to ASIC in February 2025 for an extension to the waiver from the Capital Rules and the Securities Markets Rules. BCAL sought this waiver extension on substantially the same terms as the Existing Waiver and for a further five years. The purpose of this instrument is to grant that waiver extension to BCAL in the form of a legislative instrument.

Consultation

  1.              ASIC consulted with BCAL about its original application for the Existing Waiver. As this instrument only confers relief on BCAL, ASIC did not conduct any wider consultation.
  2.              A Regulation Impact Statement is not required for this instrument as it is minor or machinery in nature and does not alter the existing requirements for market participants. The substituted or alternative requirements for BCAL as a market participant are not material or significant; they are unlikely to have more than minor regulatory impact.

Operation of the instrument

  1.          Section 1 of the instrument provides that the name of the instrument is the ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153.
  2.          Section 2 of the instrument provides that the instrument commences on the day after it is registered on the Federal Register of Legislation.
  3.          Section 3 of the instrument provides that the instrument is made under subrule 1.2.1(1) and Rule 1.2.3 of each of the Capital Rules and the Securities Markets Rules.
  4.          Section 4 of the instrument provides each instrument that is specified in a Schedule to the instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
  5.          Item 1 of Schedule 1 of the instrument amends section 8 of the Previous Waiver, to omit “1 July 2025” and substitute “1 July 2030”.    

Legislative instrument and primary legislation

  1.          The subject matter and policy implemented by this instrument is more appropriate for a legislative instrument (in the form of a waiver granted to BCAL) rather than primary legislation or through an amendment to the Capital Rules and the Securities Markets Rules. This is because:
    1.        the matters contained in the instrument are a specific exemption designed to ensure that BCAL’s compliance with certain reporting requirements in the Capital Rules and the Securities Markets Rules are appropriate for its circumstances, without compromising the operation of existing requirements for market participants to maintain adequate financial capital and notify ASIC of certain significant financial events; and
    2.       the matters contained in the instrument are highly technical and detailed, and specific to one entity only. Incorporation of these matters would unnecessarily add to the length and complexity of the primary legislation and/or ASIC market integrity rules.

Duration of the instrument

  1.          The instrument’s ceases to have effect end of 1 July 2030.

Legislative authority

  1.          ASIC makes this instrument under subrule 1.2.1(1) and Rule 1.2.3 of the Capital Rules and of the Securities Markets Rules.
  2.          Under subrule 1.2.1(1) of the Capital Rules and of the Securities Markets Rules, ASIC may, by way of legislative instrument, relieve any person or class of persons from the obligation to comply with a provision of the rules, either unconditionally or subject to such conditions as ASIC thinks fit (including the duration of such relief).
  3.          Under Rule 1.2.3 of the Capital Rules and of the Securities Markets Rules, ASIC may specify the period during which any relief from the obligation to comply with a provision of the rules may apply.
  4.          This instrument is subject to disallowance under section 42 of the Legislation Act 2003. Section 44 of the Legislation Act 2003 does not apply to this legislative instrument.

Statement of Compatibility with Human Rights

  1.          The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.

Attachment

Statement of Compatibility with Human Rights

 

This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153

Overview

  1.              This instrument extends a waiver granted to Barclay’s Capital Asia Limited (BCAL), effective from the date this instrument is registered until 1 July 2030. This waiver conditionally exempts BCAL from certain reporting requirements in the ASIC Market Integrity Rules (Capital) 2021 and the ASIC Market Integrity Rules (Securities Markets) 2017. This instrument grants a waiver n substantially the same terms as ASIC Waiver 2022/516.  

 

Assessment of human rights implications

  1.              This instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

  1.              This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview

The ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153, enacted by the Australian Securities and Investments Commission (ASIC) under the Capital Rules and Securities Markets Rules, addresses the need to extend the waiver granted to Barclays Capital Asia Limited (BCAL) beyond the existing expiration date. The waiver, initially granted in 2019 and subsequently extended in 2022, exempts BCAL from certain reporting requirements in the ASIC Market Integrity Rules due to the impracticality of complying with Australian accounting standards while being based in Hong Kong. The policy objective of this amendment is to facilitate BCAL's continued participation in the Australian financial markets by ensuring that the regulatory burden does not impede its operations. The instrument, which extends the waiver until 1 July 2030, maintains the same conditions as the previous waiver, reflecting a commitment to supporting international financial institutions while ensuring market integrity and compliance with key regulatory standards.

Scope and Application

The ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153 applies specifically to Barclays Capital Asia Limited (BCAL), a foreign company registered in Australia and licensed by the Securities and Futures Commission of Hong Kong. The waiver extends to the same terms and conditions as the previously granted waiver, ASIC Waiver 2022/516, and exempts BCAL from certain reporting requirements in the ASIC Market Integrity Rules (Capital) 2021 and the ASIC Market Integrity Rules (Securities Markets) 2017. The waiver is effective from the later of the date the instrument is registered or 1 July 2025, and it will operate until 1 July 2030. This waiver is designed to address the practical difficulties BCAL faces in complying with Australian accounting standards, which differ from those used in Hong Kong, where BCAL is based. The instrument, made under subrule 1.2.1(1) and Rule 1.2.3 of the Capital Rules and the Securities Markets Rules, allows ASIC to relieve BCAL from specific obligations subject to certain conditions, including the use of an alternative calculation method for foreign exchange exposure and compliance with alternative reporting mechanisms. This legislative instrument is considered more appropriate than primary legislation due to its highly technical nature and its applicability to a single entity.

Key Provisions

The ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver (Amendment) Instrument 2025/153 (the Instrument) extends a waiver granted to Barclays Capital Asia Limited (BCAL), effective from the later of the date this instrument is registered and 1 July 2025 and operating until 1 July 2030. This waiver exempts BCAL from certain reporting requirements in the ASIC Market Integrity Rules (Capital) 2021 and the Securities Markets Rules, in substantially the same terms as the Existing Waiver. Specifically, section 4 of the Instrument amends section 8 of the Previous Waiver, substituting "1 July 2030" for "1 July 2025". This change extends the duration of the waiver granted to BCAL. The waiver conditionally exempts BCAL from certain reporting requirements relating to the calculation of foreign exchange exposure risks and periodic reporting requirements, recognising that BCAL is based in Hong Kong and thus subject to different accounting standards. The Instrument imposes several obligations on BCAL, including the use of an alternative calculation method for foreign exchange exposure, the development of an alternative net capital calculation, and compliance with alternative reporting mechanisms. BCAL must ensure that currencies other than Hong Kong dollars are considered "foreign" and must lodge periodic financial reports in its home jurisdiction, as well as contingent reports related to the triggering of the alternative net capital calculation. These requirements are designed to ensure that BCAL’s compliance with certain reporting requirements remains appropriate for its circumstances without compromising the operation of existing requirements for market participants. Breaches of the conditions set out in the Instrument may have civil or criminal consequences. Under subrule 1.2.1(1) of the Capital Rules and the Securities Markets Rules, ASIC has the authority to relieve any person or class of persons from the obligation to comply with a provision of the rules. However, failure to adhere to the conditions of the waiver could result in the waiver being revoked, leading to the re-imposition of the reporting requirements. Additionally, any breaches of the terms could potentially result in other civil or criminal penalties under applicable financial services and securities legislation, depending on the nature and severity of the breach. The specific penalties for such breaches would depend on the relevant provisions of the Australian Securities and Investments Commission Act 2001 and other related legislation. The Instrument provides a legislative framework for the continued operation of the waiver, ensuring that BCAL can continue to operate under the specified conditions until 1 July 2030. The waiver is subject to disallowance under section 42 of the Legislation Act 2003, and a Statement of Compatibility with Human Rights is included to demonstrate that the Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.