Federal Register of Legislation - Australian Government

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Corporations Amendment Regulations 2002 (No. 7)

Authoritative Version
  • - F2002B00178
  • No longer in force
SR 2002 No. 182 Regulations as made
These Regulations amend the Corporations Regulations 2001.
Administered by: Treasury
General Comments: This instrument was backcaptured in accordance with Section 36 of the Legislative Instruments Act 2003
Made 25 Jul 2002
Registered 01 Jan 2005
Tabled HR 19 Aug 2002
Tabled Senate 19 Aug 2002
Gazetted 01 Aug 2002
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

Corporations Amendment Regulations 2002 (No. 7)1

Statutory Rules 2002 No. 1822

I, PETER JOHN HOLLINGWORTH, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Corporations Act 2001.

Dated 25 July 2002

PETER HOLLINGWORTH

Governor-General

By His Excellency’s Command

IAN CAMPBELL


1              Name of Regulations

                These Regulations are the Corporations Amendment Regulations 2002 (No. 7).

2              Commencement

                These Regulations commence on gazettal.

3              Amendment of Corporations Regulations 2001

                Schedule 1 amends the Corporations Regulations 2001.


Schedule 1        Amendment

(regulation 3)

  

[1]           After regulation 9.12.01

insert

9.12.02   Exemption from provisions of Chapter 7 — CLS Bank

         (1)   For section 1368 of the Act, the following provisions of Chapter 7 of the Act do not have effect in relation to the following transactions by participants in the facility operated CLS Bank International:

                (a)    section 794E — settlement of non-cash payments between participants;

               (b)    Part 7.3 — settlement of non-cash payments between participants in relation to the provision or transfer of a financial product mentioned in paragraph 764A (1) (a), (b), (ba), (c) or (j) of the Act.

         (2)   Subregulation (1) is subject to the conditions set out in this regulation.

         (3)   CLS Bank International must:

                (a)    operate under section 25A of the Federal Reserve Act of the United States of America; and

               (b)    be regulated as a bank by the Board of Governors of the Federal Reserve System of the United States of America.

         (4)   An Australian entity that is a participant in the facility operated by CLS Bank International:

                (a)    must be regulated by APRA; and

               (b)    must not use the services of CLS Bank International as a retail client within the meaning of section 761G of the Act.

         (5)   CLS Bank International must tell the Reserve Bank of Australia in writing as soon as practicable after any of the following circumstances happen:

                (a)    CLS Bank International receives a request for an Australian entity to become a participant in the facility it operates;

               (b)    CLS Bank International proposes approving an additional Australian entity or Australian resident as a shareholder;

                (c)    CLS Bank International notifies the Board of Governors of the Federal Reserve System of the United States of America of a proposed change in the character or nature of the facility or a significant change in its operations;

               (d)    material regulatory action is taken against CLS Bank International in any other jurisdiction.

         (6)   In this regulation:

Australian entity includes:

                (a)    an Australian bank; or

               (b)    a financial services licensee within the meaning of section 761A of the Corporations Act 2001.

material regulatory action, for the facility operated by CLS Bank International, means:

                (a)    any action by the Board of Governors of the Federal Reserve System of the United States of America that requires CLS Bank International to cease, suspend or vary its operations or to take any other action in the nature of a sanction or corrective action in relation to either the operation of the facility or CLS Bank International; or

               (b)    regulatory action that is likely to affect Australian participants in the facility or any Australian operations of CLS Bank International.

participant, for the facility operated by CLS Bank International, means a person who, under the facility’s operating rules, is allowed to participate directly in the facility, with or without the authority of another participant.

Notes

1.       These Regulations amend Statutory Rules 2001 No. 193, as amended by 2001 Nos. 208, 318 and 319; 2002 Nos. 15, 16, 41, 53, 126 and 145.

2.       Notified in the Commonwealth of Australia Gazette on 1 August 2002.