Crisis Management Arrangements

As described on the Financial Institutions crisis management arrangements page, the Council of Financial Regulators (CFR) has a role to coordinate responses to a range of circumstances involving potential or actual instances of financial instability. This role is detailed in an updated Memorandum of Understanding (MOU) on Crisis Management, which the CFR signed in July 2025. The MOU sets out the CFR’s crisis management framework, including its objectives, principles and processes. It also sets out the responsibilities of the individual CFR members during situations of potential or actual stress.

As co-supervisors of clearing and settlement (CS) facilities, effective communication and cooperation between Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA) in the event of a crisis occurring at a CS facility will be vital. The Memorandum of Understanding in place between those agencies for the sharing of information in the normal course would also provide the basis for information sharing in a crisis event.

FMI Resolution

The Council of Financial Regulators' (CFR's) 2011 consultation on the Review of Financial Market Infrastructure Regulation discussed resolution powers in relation to financial market infrastructures (FMIs), including the power to “step in” and take control via appointment of a statutory manager. Following the consultation, the CFR recommended that step in powers be introduced.

Since then, CFR agencies have been working on the design of a resolution regime, intended to provide legislative powers to resolve a distressed FMI. The high level design of the regime was consulted on in 2015. Further details were provided in a second consultation in 2019, alongside a number of other FMI regulatory reforms. Following this, the CFR provided advice to the Government recommending a package of reforms.

In June 2021, the Treasurer announced that the Government will introduce regulatory reforms (see the Treasurer's media release).