Financial System Legislation Amendment (Resilience and Collateral Protection) Regulation 2016 (F2016L00724)

Schedule 1   Facilitating access to derivatives for superannuation funds and life insurance companies

Superannuation Industry (Supervision) Regulations 1994

9   Subregulation 13.15A(2) (definition of derivative)

Repeal the definition, substitute:

derivative means any of the following:

(a) a derivative (within the meaning of Chapter 7 of the Corporations Act 2001);

(b) a foreign exchange contract (within the meaning of that Chapter);

(c) an arrangement that is a forward, swap or option, or any combination of those things, in relation to one or more commodities;

but does not include any arrangement that is of a kind mentioned in subregulation 6(2) of the Payment Systems and Netting Regulations 2001.

Note: Subregulation 6(2) of the Payment Systems and Netting Regulations 2001 identifies obligations that are not eligible obligations in relation to a close-out netting contract. The arrangements mentioned include credit facilities, reciprocal purchase agreements (otherwise known as repurchase agreements), sell-buyback arrangements, securities loan arrangements, contracts of insurance and managed investment schemes.