20 February 2015
Media Release - #2015009, 2015

In the role of: Assistant Treasurer [23 December 2014 - 21 September 2015]

Government calls for consultation on crisis resolution regime for financial market infrastructures

Today the Government is releasing a consultation paper and calling for submissions on a potential crisis resolution regime for financial market infrastructures.

The Government is committed to implementing measures to mitigate the risks of a financial market or related service failing. Although Australia has statutory crisis resolution regimes for banks and insurance companies, such provisions do not exist for key market infrastructure, despite the risks to the stability of the financial system that could result from their failure.

These risks are not unique to Australia. International bodies, including the Financial Stability Board (FSB), have acknowledged these risks and developed standards setting out the powers regulators should have to resolve a failing market infrastructure. The proposals put forward in the consultation paper are consistent with those developed by the FSB.

The Financial System Inquiry Final Report also acknowledged the risk of market infrastructure failing, recommending that policy development and consultation on a resolution framework be progressed.

The closing date for submissions is 27 March 2015. Further information relating to the consultation process is available on the Treasury website.