Following the Government’s announcement in October last year that it would strengthen financial regulation to better protect Australians from the possible abuse and manipulation of financial benchmarks, Treasury has released the following exposure draft legislation:
- Corporations Amendment (Financial Benchmarks) Bill 2017; and
- ASIC Supervisory Cost Recovery Levy Amendment Bill 2017,
together with explanatory materials.
The proposed Bills establish the overarching framework for the regulatory regime which is proposed to commence from 1 January 2018 and will require administrators of 'significant' benchmarks (which are to be determined by ASIC subject to a number of specified criteria) to obtain a 'benchmark administrator' license and comply with a number of new regulatory requirements.
The Government and ASIC will continue to consult on the regulatory regime, with this detail to be included in subsequent draft ASIC rules.
Submissions are due by Monday 24 July 2017.
See ASIC media release dated 26 June 2017.