ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705 (Cth)

ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705

About this compilation

Compilation No. 1

This is a compilation of ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705 as in force on 1 September 2023. It includes any commenced amendment affecting the legislative instrument to that date.

This compilation was prepared by the Australian Securities and Investments Commission.

The notes at the end of this compilation (the endnotes) include information about amending instruments and the amendment history of each amended provision.

Contents

Part 1—Preliminary 1 Name of legislative instrument 3 Authority 4 Definitions Part 2—Declaration 5 Adequate financial resources for issuers of retail OTC derivatives Part 3—Repeal 6 Repeal Endnotes Endnote 1—Instrument history Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument This is the ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705.

3 Authority This instrument is made under paragraph 926A(2)(c) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

Part 2—Declaration

5 Adequate financial resources for issuers of retail OTC derivatives

Part 7.6 (other than Divisions 4 and 8) of the Act applies to financial services licensees as if that Part were modified or varied by inserting the following section in its relative order in Division 3 of Part 7.6: "912AB Adequate financial resources for financial services licensees that issue derivatives to retail clients (1) This section applies to a financial services licensee that: (a) holds an Australian financial services licence covering the provision of the following financial services: (i) dealing in a financial product by issuing derivatives; (ii) making a market for derivatives; and (b) incurs actual or contingent liabilities by issuing derivatives to persons as a retail client; and (c) is not: (i) a body regulated by APRA that is not required to comply with paragraph 912A(1)(d); or (ii) a market participant; or (iii) a clearing participant. (2) A financial services licensee covered by subsection (1) that complies with this section is taken to comply with conditions (if any) of its licence that relate to any of the following: (a) a cash needs requirement; (b) financial requirements for licensees transacting with clients; (c) reporting triggers and requirements for financial requirement conditions; (d) the obligation to lodge an audit opinion on the financial requirements to the extent the opinion is for a part of a financial year or other period during which the licensee was covered by subsection (1). Note: The conditions on the licence may include other requirements that relate to having available adequate financial resources.