On September 9, the Australian Securities and Investments Commission (ASIC) announced the remake of ASIC Class Order [CO 12/752] Financial Requirements for Issuers of Retail OTC without significant amendments.
The new instrument, ASIC Corporations (Financial Requirements for Issuers of Retail OTC Derivatives) Instrument 2022/705 imposes specific financial requirements on AFS licensees that are authorised to make a market in over-the-counter (OTC) derivatives to retail clients. The instrument modifies the Corporations Act 2001 (the Act) by inserting s912AB. Section 912AB requires retail OTC derivative issuers to comply with the provisions set out in the instrument, as part of satisfying the obligation to have adequate financial resources under paragraph 912A(1)(d) of the Act.
Consistent with Government’s Regulation Impact Statement requirements for sunsetting instruments, ASIC has, after consultation with stakeholders, assessed the instrument as operating effectively and efficiently. Therefore, a Regulation Impact Statement is not required for remaking this instrument.