Arbitration of amount of cash settlement of certain claims
7.5.81 Arbitration of amount of cash settlement of certain claims
If:
a cash settlement provision requires the SEGC to pay an amount in respect of a claim; and
the amount cannot be determined by agreement between the SEGC and the claimant;
the amount must be determined by arbitration in accordance with this regulation.
If:
in relation to a claim, paragraph 7.5.77(3)(c), (5)(c) or (6)(c) requires the SEGC to work out the value of securities, or the number of securities that are equal in value to another value or amount; and
the value or number cannot be determined by agreement between the SEGC and the claimant;
the value or number is to be determined by arbitration in accordance with this regulation.
The reference to arbitration is a reference to persons appointed, in accordance with subregulation (4), for the purposes of the reference.
For the purposes of the reference to arbitration:
if the claim relates to a participating market licensee—the participating market licensee must make the appointment, or the participating market licensees must jointly make the appointment; and
if the claim relates to the licensed CS facility operated by ACH—ACH must make the appointment; and
if the claim relates to a participating market licensee and to the licensed CS facility operated by ACH—the participating market licensee and ACH must jointly make the appointment; and
3 persons must be appointed; and
the Minister must have approved the appointment of each person in writing; and
at least 2 of the persons must not be any of the following:
if the claim relates to a participating market licensee:
a representative of the participating market licensee;
a participant of the participating market licensee;
a representative of a participant of the participating market licensee;
if the claim relates to the licensed CS facility operated by ACH:
a representative of ACH;
a participant of the licensed CS facility;
a representative of a participant of the licensed CS facility;
if the claim relates to a participating market licensee and to the licensed CS facility operated by ACH:
a representative of the participating market licensee;
a participant of the participating market licensee;
a representative of a participant of the participating market licensee;
a representative of ACH;
a participant of the licensed CS facility;
a representative of a participant of the licensed CS facility;
in any case—a representative of the SEGC.
If, before the commencement of this regulation, an arbitration:
was to take place but had not begun; or
had begun but had not been concluded;
the arbitration must take place, or continue, as if it were an arbitration under this regulation.
In this regulation:
cash settlement provision means any of the following provisions:
regulation 7.5.28;
regulation 7.5.29;
regulation 7.5.57;
regulation 7.5.62;
subregulation 7.5.65(1);
subregulation 7.5.65(2).
This Act’s bill:Explanatory statement
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