Bill
Financial System Legislation Amendment (Resilience and Collateral Protection) Bill 2016
passed, as at 2016-05-04. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2016-03-16
- second reading — 2016-03-16
- other — 2016-04-15
- other — 2016-05-02
- second reading — 2016-05-02
- second reading — 2016-05-02
- third reading — 2016-05-02
- introduced — 2016-05-03
- second reading — 2016-05-03
- second reading — 2016-05-04
- second reading — 2016-05-04
- third reading — 2016-05-04
- passed — 2016-05-04
- royal assent — 2016-05-04
Divisions
No divisions recorded. Most questions are decided on the voices; this does not establish that a bill was unopposed.
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2016-03-16.
This bill would let Australian financial institutions meet global rules for managing risk in over-the-counter derivatives trades.
It would update the Payment Systems and Netting Act 1998 and other laws to allow institutions to give and enforce rights over collateral provided as security.
The bill would also clarify how Australian law applies to termination rights and approved settlement systems in all market conditions.
- Amends the Payment Systems and Netting Act 1998 and associated provisions in other Acts.
- Ensures financial institutions can comply with internationally-agreed margining requirements for OTC derivatives.
- Provides legal certainty about termination rights under certain financial market transactions.
- Provides legal certainty about approved RTGS systems, netting arrangements and netting markets in all market conditions.
- Makes consequential amendments to the Banking Act, Business Transfer Act, Insurance Act, Life Insurance Act, and PHI Act.
Financial institutions in Australia that deal in over-the-counter derivatives.
Sources
em
billhome
frl act