House of Representatives
Financial System Legislation Amendment (Resilience and Collateral Protection) Bill 2016
Explanatory Memorandum
(Circulated by authority of the Minister for Small Business and Assistant Treasurer, the Hon Kelly O'Dwyer MP)Glossary
The following abbreviations and acronyms are used throughout this explanatory memorandum.
| Abbreviation | Definition |
| ADI | Authorised Deposit-taking Institutions |
| AFS licensee | Australian financial services licensee |
| APCA | Australian Payments Clearing Association |
| APRA | Australian Prudential Regulation Authority |
| ASIC | Australian Securities and Investments Commission |
| Banking Act | Banking Act 1959 |
| BCBS | The Basel Committee on Banking Supervision |
| BCBS-IOSCO Margin Requirements | Margin requirements for non-centrally cleared derivatives published by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions in September 2013 as revised in March 2015 |
| Business Transfer Act | Financial Sector (Business Transfer and Group Restructure) Act 1999 |
| CCP | Central counterparty |
| CFR | Council of Financial Regulators |
| CHESS | Clearing House Electronic Sub-register System |
| Corporations Act | Corporations Act 2001 |
| Corporations Regulations | Corporations Regulations 2001 |
| Cross-Border Insolvency Act | Cross-Border Insolvency Act 2008 |
| EU Financial Collateral Directive | Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements |
| Financial Collateral Arrangements Regulations | The Financial Collateral Arrangements (No.2) Regulations 2003 (UK) (as amended by the Financial Markets and Insolvency (Settlement Finality and Financial Collateral Arrangements)(Amendment) Regulations 2010) |
| FMI | Financial market infrastructure |
| FSB | Financial Stability Board |
| G20 | The Group of Twenty |
| Grantor | Person who has granted the security |
| Industry Acts | Banking Act 1959, Financial Sector (Business Transfer and Group Restructure) Act 1999, Insurance Act 1973 and Life Insurance Act 1995 |
| Insurance Act | Insurance Act 1973 |
| IOSCO | The International Organization of Securities Commissions |
| ISDA | International Swaps and Derivatives Association Inc. |
| Key Attributes | Key Attributes for Effective Resolution of Financial Institutions |
| Life Insurance Act | Life Insurance Act 1995 |
| OTC | Over-the-counter |
| PHI Act | Private Health Insurance (Prudential Supervision) Act 2015 |
| PPSA | Personal Property Securities Act 2009 |
| PSN Act | Payment Systems and Netting Act 1998 |
| PPS Register | Register established under the Personal Property Securities Act 2009 |
| RBA | Reserve Bank of Australia |
| Regulated Entity | ADIs, life insurers and general insurers regulated by the Australian Prudential Regulation Authority |
| Reserve Bank Act | Reserve Bank Act 1959 |
| Resolution Events | Any of the following occurrences: the appointment of a statutory manager or judicial manager, the statutory manager or judicial manager taking action to facilitate recapitalisation and certain events occurring in relation to a compulsory transfer of business which are described in subsection 36AA(2) of the Financial Sector (Business Transfer and Group Restructure) Act 1999. |
| RITS | Reserve Bank of Australia Information and Transfer System |
| RTGS | Real Time Gross Settlement |
| Secured party or secured person | Person to whom security has been granted |
| Stay Protocol | International Swaps and Derivatives Association 2015 Universal Resolution Stay Protocol |
| the Bill | Financial System Legislation Amendment (Resilience and Collateral Protection) Bill 2016 |
| the Inquiry | The Financial System Inquiry |