Banking and Finance Point-in-Time Service Updates

The Banking and Finance Point-in-Time Service has been updated to include the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (Cth) (Act No 87 of 2024) and the National Consumer Credit Protection Amendment (Small Business Exemption) Regulations 2024 (Cth).

Act 87 of 2024

This Act makes substantive amendments to various Acts including the Corporations Act 2001 (Cth) (the Corporations Act) and the Reserve Bank Act 1959 (Cth), as part of a financial market infrastructure (FMI) reform package. Schedule 1, 2 and 3 to the Act includes amendments to: 

• give powers to the Reserve Bank of Australia (RBA) to step in and resolve a crisis at a domestic clearing and settlement facility to ensure the continuity of critical clearing functions, and to protect Australia's financial stability;
• grant powers to the RBA to assist a foreign regulator to resolve an overseas clearing and settlement facility licenced in Australia;
• enhance regulator powers over foreign entities operating FMIs with a significant Australian nexus to ensure they are subject to appropriate oversight;
• implement the recommendations from the Council of Financial Regulators (CFR) in their advice provided to government on the FMI crisis and supervisory reforms in July 2020.

These amendments also aim to strengthen and streamline the Australian Securities and Investments Commission (ASIC) and the RBA's licensing, supervisory and enforcement powers over FMIs and reallocates powers between the minister and regulators to better accord with their respective mandates.

Schedule 4 to the Act requires entities that lodge financial reports under Chapter 2M of the Corporations Act and meet certain minimum size thresholds, or have emissions reporting obligations under the National Greenhouse and Energy Reporting scheme, to make disclosures relating to climate in accordance with relevant sustainability standards made by the Australian Accounting Standards Board. The amendments phase-in the new obligations for climate-related financial disclosure depending on entity size and type over a number of years.

Schedule 5 to the Act makes related minor and technical amendments to the Corporations Act, the Australian Securities and Investments Commission Act 2001 (Cth) and the Insurance Act 1973 (Cth).

National Consumer Credit Protection Amendment (Small Business Exemption) Regulations 2024

The Regulations amend the National Consumer Credit Protection Regulations 2010 (Cth) to extend the existing time-limited exemption from responsible lending obligations for small businesses for a further two years; and make minor and technical amendments.

These amendments have been updated in the Point-in-Time Banking and Finance Service current to 10 October 2024. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.