Announcement date
20 December 2022
Link to Announcement
Derivative transaction reporting | ASIC
Problem being addressed
There are three main problems being addressed:
- updating the ASIC Derivative Transaction Rules (Reporting) 2013 (Rules) to ensure that they are internationally consistent and that there is regulatory parity, to facilitate Australia’s continued integration into global financial markets
- updating the Rules to remove outdated transitional provisions and consolidate the various exemptions that currently exist as separate instruments within the Rules
- clarification of the Rules to ensure that they are fit-for-purpose as to the scope of reporting entities, derivative products and lifecycle transaction events that are subject to the Rules and clear as to the roles and responsibilities of entities submitting derivative transaction reports.
Proposal
To update the Rules in line with Australia’s Group of Twenty (G20) commitments and the expectations of the Financial Stability Board so that they are:
- harmonised to international standards resulting in reduced cost and complexity for industry, improved data quality for the Australian regulators, more comprehensive and fit-for-purpose trade details and improved inter-jurisdictional data handling
- simplified by the removal of outdated transitional provisions and consolidation of exemptions within the Rules
- fit-for-purpose as to the scope of reporting entities, derivative products and lifecycle transaction events that are subject to the Rules and clear as to the roles and responsibilities of entities submitting derivative transaction reports.
Assessed IA outcome
Independent review
Assessment comments
Consistent with the Government's Impact Analysis (IA) requirements, the Australian Securities and Investments Commission have certified consultation papers 334 - Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): First consultation and 361 - Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): Second consultation as meeting the requirements of an IA. The Office of Impact Analysis (OIA) does not assess the quality of independent reviews and IA-like documents used in lieu of an IA but does assess whether the options analysed in the independent review are relevant to the regulatory proposal. The OIA assessed that the options analysed in the independent review are sufficiently relevant to the regulatory proposal.
Regulatory burden
The Australian Securities and Investments Commission estimates an increase in regulatory costs of $3.7 million per year, averaged over ten years.