In April 2012 the Australian Council of Financial Regulators
(which comprises the RBA, APRA and ASIC) issued a Consultation
Paper entitled "Implementation of a framework for
Australia's G20 over-the-counter derivatives commitments".
Public submissions on the Consultation Paper closed on 15 June
2012. Norton Rose Australia is pleased to have made a submission to
the government in relation to a number of legal matters raised in
the Consultation Paper. A copy of the Norton Rose Australia
submission can be accessed
The Consultation Paper is the first concrete step taken by the
Australian government to implement Australia's G20 commitments
relating to the regulation of OTC derivatives. At this stage, the
government's proposal envisages the introduction of a
legislative framework which will allow ASIC and the Minister for
Financial Services and Superannuation to promulgate more specific
regulations (following further public consultation) that will
mandate that certain prescribed classes of derivatives be subject
to one or more mandatory obligations relating to trade reporting,
central clearing and trade execution.
Whilst the Consultation Paper seeks submissions on key issues
surrounding the implementation of regulations for OTC derivatives,
such as which derivatives products and market participants should
be subject to mandatory central clearing requirements, the
extra-territorial effect of such requirements and whether there
should be a requirement that central counterparties be located in
Australia, it stops short of issuing draft regulations that seek to
address them. It is expected that the next phase of public
consultation will involve the issue of more detailed draft
legislation to implement the proposed legislative framework, along
with further details regarding those classes of derivatives that
will be subject to the mandatory obligations.
Norton Rose Australia has extensive experience advising
financial institutions, asset managers and corporates regarding the
OTC derivatives. Norton Rose Group's London and European
offices have also been involved in assisting clients to understand
the implications of regulatory developments in the OTC derivatives
market in those jurisdictions. Should you wish to discuss any
aspects of Australia's proposed regime for regulating OTC
derivatives, please contact one of our specialist lawyers. Further
information may also be found on the "
OTC Oracle" area of the Norton Rose Group website.
This part will cover the legal position in relation to promotional materials and misleading and deceptive conduct.
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