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ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329

ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329

Administered by Department of the Treasury

Legislation au F2022L00751 Rules Not in force Legislative Instrument

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Explanatory Statement

This is the Explanatory Statement for ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329.

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

Summary

1. On 9 March 2022 ASIC made the following three instruments (together, the amendment instruments), all of which were registered on the Federal Register of Legislation on 9 March 2022:

(a) ASIC Market Integrity Rules (Securities Markets) Amendment 2022/73 (Instrument 2022/73), which amends the ASIC Market Integrity Rules (Securities Markets) 2017 (Securities Markets Rules) commencing three months after the day of registration;

(b) ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/74 (Instrument 2022/74), which amends the Securities Markets Rules and the ASIC Market Integrity Rules (Futures Markets) 2017 (Futures Markets Rules) commencing on the day that is 12 months after the day of registration; and

(c) ASIC Market Integrity Rules (Securities Markets and other ASIC-Made Rules) Amendment Instrument 2022/117 (Instrument 2022/117), which (among other amendments) amends the Securities Markets Rules and the Futures Markets Rules commencing three months after the day of registration.

Purpose of the instrument

3. The purpose of this instrument is to amend each of the amendment instruments to provide for a specific date of commencement, instead of a date specified by reference to the elapsing of a period of months for certain amendments to the Securities Markets Rules and the Futures Markets Rules. The specified dates in this instrument do not materially alter the period of months originally referred to in the commencement provisions of the amendment instruments.

4. Specifically, this instrument amends section 2 of:

(a) Instrument 2022/73, to clarify that the amendments to Rule 5.4B.1 of the Securities Markets Rules commence on 10 June 2022;

(b) Instrument 2022/74, to clarify that the following amendments commence on 10 March 2023:

(i) inserting Chapter 8A and 8B into the Securities Markets Rules and the Futures Markets Rules; and

(ii) repealing Rule 9.1.3 of the Securities Markets Rules;

(i) inserting a good fame and character requirement for market operators into the Securities Markets Rules, and for market operators and participants into the Futures Markets Rules; and

(ii) inserting a suspicious activity reporting requirement into the Futures Markets Rules.

5. The amendments made by this instrument do not materially alter the periods of months originally referred to in the commencement provisions of the amendment instruments and align the commencement dates with ASIC’s public statements about commencement of the amendment instruments, made after the amendment instruments were registered.

Consultation

6. We did not consult with industry on the amendments in this instrument, as they are minor machinery amendments made, as noted above, to provide clarity to industry by aligning the commencement dates of the amendment instruments with ASIC’s public statements about commencement of the amendment instruments, made after the amendment instruments were registered.

Operation of the instrument

7. Section 1 of this instrument provides that the name of the instrument is the ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329.

8. Section 2 of this instrument provides that the instrument commences on the day after the instrument is registered on the Federal Register of Legislation.

9. Section 3 of this instrument provides that the instrument is made under section 798G of the Corporations Act 2001 (the Act).

10. Section 4 of this instrument provides that each instrument specified in a Schedule to the instrument is amended or repealed as set out in the applicable items of the Schedule.

11. Schedule 1 of this instrument amends section 2 of Instrument 2022/73 to clarify that the amendments set out in Schedule 1 of Instrument 2022/73 commence on 10 June 2022. It also removes the note in section 2 which referred to the Federal Register of Legislation, as the amendment removes any reference to that Register in the section.

12. Schedule 2 of this instrument amends section 2 of Instrument 2022/74 to clarify that the amendments set out in Schedules 1 and 2 of Instrument 2022/74 commence on 10 March 2023. It also removes the note in section 2 which referred to the Federal Register of Legislation, as the amendment removes any reference to that Register in the section.

13. Schedule 3 of this instrument amends subsection 2(c) of Instrument 2022/117 to clarify that the amendments set out in items 8 and 14 of Schedule 1 and items 8,11,12 of Schedule 2 of Instrument 2022/74 commence on 10 June 2022.

14. The amendments made by this instrument do not materially alter the periods of months originally referred to in the commencement provisions of the amendment instruments and align the commencement dates with ASIC’s public statements about commencement of the amendment instruments, made after the amendment instruments were registered.

Legislative instrument and primary legislation

15. The subject matter and policy implemented by this instrument is more appropriate for a legislative instrument rather than primary legislation. The matters contained in the instrument are specific amendments to existing legislative instruments, being the amendment instruments. The purpose of this instrument is to give certainty and clarity to industry about the actual commencement date for amendments made by the amendment instruments to the Securities Markets Rules and Futures Market Rules.

Duration

16. The duration of the amendments made by this instrument aligns with the duration of the Securities Markets Rules and the Futures Markets Rules being amended.

17. The market integrity rule books, which include the Securities Markets Rules and the Futures Markets Rules, are exempt from sunsetting under item 18 of section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015. Market integrity rules regulate the operation of financial markets. As noted in the Explanatory Statement to the Legislation (Exemptions and Other Matters) Regulation 2015, commercial certainty would be undermined by the sunsetting of these rules.

Legislative authority

18. This instrument is made under sections 798G of the Act.

19. Subsection 798G(3) of the Act provides that ASIC must not make a market integrity rule unless the Minister has consented, in writing, to the making of the rule. The Minister consented to the making of the amendment instruments by written notice to ASIC dated 31 January 2022. This instrument clarifies the actual commencement dates for some of the amendments in the amendment instruments.

20. Subsection 33(3) of the Acts Interpretation Act 1901 (as in force as at 1 January 2005 and as applicable to the relevant powers because of section 5C of the Act) provides that “Where an Act confers a power to make, grant or issue any instrument (including rules, regulations or by‑laws) the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.” Subsection 33(3) of the Acts Interpretation Act 1901 applies to this instrument.

21. Sections 798G of the Act provides that rules respectively made under this section are by way of legislative instrument. This means that such rules are subject to disallowance in accordance with section 42 of the Legislation Act 2003. Section 44 of the Legislation Act 2003 does not apply to this instrument. This instrument is subject to disallowance.

Statement of Compatibility with Human Rights

22. 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 (Securities Markets and Futures Markets) Amendment Instrument 2022/329

Overview

1. On 9 March 2022 ASIC made the following three instruments (together, the amendment instruments), all of which were registered on the Federal Register of Legislation on 9 March 2022:

2. The ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329 (this instrument) amends section 2 of each of the amendment instruments to provide for a specific date of commencement, instead of a date specified by reference to the elapsing of a period of months. The specified dates in this instrument do not materially alter the period of months originally referred to in the commencement provisions of the amendment instruments. This instrument also removes references in notes to the commencement provisions to the Federal Register of Legislation. Those references are redundant once this instrument commences.

Assessment of human rights implications

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

Conclusion

4. 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 (Securities Markets and Futures Markets) Amendment Instrument 2022/329 was enacted by the Australian Securities and Investments Commission (ASIC) to address the need for clarity and certainty regarding the commencement dates of certain amendments to the Securities Markets Rules and Futures Markets Rules. This legislative instrument, which amends the commencement dates specified in earlier amendment instruments, was introduced to ensure that the rules come into effect as publicly communicated by ASIC, without altering the original intended timeframes. The primary objective of this amendment is to provide explicit commencement dates for the rules, thereby enhancing transparency and predictability for industry participants. By specifying exact dates rather than periods, the instrument aims to prevent any confusion or misinterpretation regarding when the new rules will apply. This amendment is a response to the need for precision in the implementation of regulatory changes, ensuring that the securities and futures markets operate under clearly defined and understood rules.

Scope and Application

The ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329 applies to the amendments made by three preceding instruments: the ASIC Market Integrity Rules (Securities Markets) Amendment 2022/73, the ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/74, and the ASIC Market Integrity Rules (Securities Markets and other ASIC-Made Rules) Amendment Instrument 2022/117. These amendments concern the Securities Markets Rules and Futures Markets Rules, which are part of the broader regulatory framework overseen by the Australian Securities and Investments Commission (ASIC). The instrument specifies particular commencement dates for certain amendments, replacing the previously referenced period of months with specific dates to provide clarity and certainty for industry participants. Jurisdictionally, this instrument operates under the authority of the Corporations Act 2001 and is subject to disallowance, reflecting its legislative instrument status. The geographic reach of the Act extends to the entire Commonwealth of Australia, as it pertains to national securities and futures markets. This instrument does not introduce any exclusions, exemptions, or thresholds beyond those already established in the primary rules it amends, but it does clarify the commencement dates for certain amendments. The instrument’s provisions are designed to ensure that the commencement dates align with ASIC's public communications, thereby maintaining transparency and predictability for market participants.

Key Provisions

The ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329 amends the commencement dates of the previous three amendment instruments made by ASIC, specifically Instruments 2022/73, 2022/74, and 2022/117. For example, it specifies that certain amendments to the Securities Markets Rules and Futures Markets Rules should commence on 10 June 2022 and 10 March 2023, respectively, rather than the dates specified by reference to the elapsing of a period of months (sections 2 and 4). This amendment provides clarity to the industry by aligning the commencement dates with ASIC's public statements made after the amendment instruments were registered. The Act imposes several obligations on the parties and entities it governs. The most notable obligations include ensuring compliance with the market integrity rules and meeting the requirements for market operators and participants. For example, the Act requires market operators and participants to meet certain good fame and character requirements and report suspicious activities. The Act also mandates the insertion of Chapter 8A and 8B into the Securities Markets Rules and the Futures Markets Rules and the repeal of Rule 9.1.3 of the Securities Markets Rules. Breach of the provisions of this Act can lead to various civil and criminal consequences, depending on the nature and severity of the offence. In terms of civil penalties, the Act provides for significant financial penalties for non-compliance with the market integrity rules, which can be imposed by the Australian Securities and Investments Commission (ASIC). In terms of criminal penalties, the Act provides for imprisonment and/or fines for serious breaches of the market integrity rules. For example, the maximum penalty for individuals found guilty of knowingly making a false or misleading statement in relation to financial products or services is a fine of up to $275,000 or imprisonment for up to five years, or both (section 12AA of the Corporations Act 2001). For corporations, the maximum penalty is a fine of up to $1.375 million (section 13AD of the Corporations Act 2001). The Act also provides for the possibility of disqualification from managing corporations for certain offences. In conclusion, the ASIC Market Integrity Rules (Securities Markets and Futures Markets) Amendment Instrument 2022/329 provides clarity and certainty to industry by specifying the commencement dates for certain amendments to the Securities Markets Rules and Futures Markets Rules. The Act imposes obligations on parties and entities it governs, such as meeting the good fame and character requirements and reporting suspicious activities. Breach of the Act can lead to civil and criminal consequences, including significant financial penalties and imprisonment.

Area of Law: Administrative Law; Corporate Law & Governance; Financial Law
Instrument: Legislative Instrument
Concepts: Commencement Provisions; Delegated & Subordinate Legislation; Regulatory Standards

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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.

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