New powers for ASIC

Written on the 9 September 2009

ASIC has been handed the supervisory role of financial market trading, effective from the third quarter 2010.

At present, the ASX refers problems to ASIC, but under the new system the corporate watchdog will assume full control. The extra powers sought by ASIC give it the ability to monitor trading activity directly and to have sole power over investment bankers, brokers and other traders.

ASIC chairman Tony D’Aloisio, says the move, unveiled by Treasurer Wayne Swan and Financial Services Minister Chris Bowen, effectively removes some of the conflict of interest implied by the ASX having supervisory control of the market that also provides it with its sole source of profits.

“Following our strategic review in 2007, ASIC is now closer to the market, more accessible, flexible, and able to take emerging trends into account more quickly,” he says.

“We have built up our market skills with a number of senior recruitments with market experience. We will be working closely with ASX to ensure a smooth transition of market surveillance and participant supervision responsibilities to ASIC.

“In addition, this will allow for a whole of market approach to market surveillance and participant supervision should the government issue licences for new trading market operators.”

The move is a welcome one, reducing much of the inherent conflicts in the present system, where the ASX earns its money from increased trading but is also the market’s regulator.

The ASX will still have control over the listing rules governing companies listed on the Australian Securities Exchange.

The move will save the ASX an estimated $15 million in supervisor fees.


Latest News

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter