EXPLANATORY STATEMENT – REVOCATION OF FINANCIAL STABILITY STANDARDS (FSS 2003.1, FSS 2003.2)
The Reserve Bank of Australia (Reserve Bank) has the power under subsection 827D(8) of the Corporations Act 2001 (the Act) to revoke financial stability standards that apply to clearing and settlement facility licensees.
At its November 2012 meeting, the Reserve Bank’s Payments System Board approved the revocation of the Financial Stability Standard for Central Counterparties (FSS 2003.1) and the Financial Stability Standard for Securities Settlement Facilities (FSS 2003.2), each as varied, with effect on 29 March 2013.
The Reserve Bank’s decision to revoke FSS 2003.1 and FSS 2003.2 was made in conjunction with its decision to, pursuant to subsection 827D(1) of the Act, determine the Financial Stability Standards for Central Counterparties and Financial Stability Standards for Securities Settlement Facilities (together, the new FSSs). The new FSSs will replace FSS 2003.1 and FSS 2003.2.
The Reserve Bank’s decision to revoke FSS 2003.1 and FSS 2003.2 and to determine the new FSSs was made following feedback received from stakeholders during a consultation process on a proposal to determine new FSSs. In accordance with subsection 827D(8) of the Act, that process included consultation with the Australian Securities and Investment Commission. The consultation process undertaken by the Reserve Bank is described in more detail in the Regulation Impact Statement, available on the Reserve Bank’s website at http://www.rba.gov.au/payments-system/clearing-settlement/standards/201212-new-fss-ris/index.html.
Documents
- RBA Media Release: New Financial Stability Standards, 5 December 2012, is available on the Reserve Bank’s website at http://www.rba.gov.au/media-releases/2012/mr-12-37.html
- The Regulation Impact Statement detailing these changes, together with attachments setting out the new FSSs and associated guidance, is available on the Reserve Bank’s website at http://www.rba.gov.au/payments-system/clearing-settlement/standards/201212-new-fss-ris/index.html