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The Safe Harbour Benefits of Delegated Reporting

Posted on September 25th, 2015 by Sophie Gerber in OTC Trade Reporting

Regulation-formAustralian issuers of OTC derivatives (with less than A$5 billion gross notional outstanding positions as at June 30, 2014) will need to report for the first time from October 12, 2015 under the ASIC Derivative Transaction Rules (Reporting) 2013 (the Reporting Rules).

What Is Delegated Reporting?

The Reporting Rules allow a reporting entity to appoint one or more persons (each a delegate) to report on its behalf in accordance with Reporting Rules 2.2.1–2.2.5 and 2.2.8. This delegate may be a counterparty, a central counterparty, a trading platform, a service provider, a broker or any person.

Safe Harbour

A reporting entity that appoints a delegate is taken to have complied with their reporting obligations (under Reporting Rules 2.2.1–2.2.5 and 2.2.8) in relation to each reportable transaction and reportable position for which the delegate has been appointed to report. However, this is only available if:

(a) the terms of the delegate’s appointment and any related agreements or arrangements are documented in writing; and

(b) the reporting entity makes regular enquiries reasonably designed to determine whether the delegate is discharging its obligations under the terms of its appointment.

Further, a reporting entity that appoints another person to report on its behalf remains responsible for taking all reasonable steps to ensure the completeness, accuracy and currency of the information reported.

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Sophie Gerber

Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.