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australia - official


Official sector announcements, developments, consultations and activities in Australia.

Reserve Bank of Australia

The Reserve Bank of Australia (RBA) is Australia's central bank and derives its functions and powers from the Reserve Bank Act 1959. Its duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the cash rate to meet an agreed medium-term inflation target, working to maintain a strong financial system and efficient payments system, and issuing the nation's banknotes.

ASIC

ASIC is Australia's integrated corporate, markets, financial services and consumer credit regulator.

In December 2019, the IBOR Transformation Australian Working Group wrote to the Council of Financial Regulators requesting guidance on the supervisory expectation regarding conduct matters associated with the transition from LIBOR to alternative reference rates (ARRs) in the form of near Risk Free Rates (RFRs). The Australian Group is the national working group that considers the strategic issues facing Australia as the market is transformed by IBOR transition. Two issues were raised. The first matter concerned conduct risk in relation to the transition to RFRs; the second concerned client communications. This letter is available here.

After deliberation by the Council, ASIC has responded to the request for guidance and its views are set out in a letter of reply to Australian group. The letter addresses conduct risk in relation to the transition to RFRs and client communications. ASIC’s guidance letter is available here.

In May 2020, ASIC sent out a letter to a number of large corporations in Australia regarding the transition to ARRs to highlight the need to plan for LIBOR transition and to encourage entities to start the transition early. The letter is available here.

With the support of the Australian Prudential Regulation Authority (APRA) and the RBA, ASIC released a statement on 13 October 2020 urging Australian institutions to adhere to the ISDA Protocol and Supplement.