ASIC market supervision update Issue 2
ASIC's surveillance of Australian financial markets is continuing smoothly. Matters identified are being referred through to the ASIC Deterrence teams for investigation. Our key themes continue to be:
Market Integrity Rules
unauthorised securities trading
discretionary managed accounts
misleading and deceptive statements in marketing material
compliance with sophisticated investor requirements for excluded offers
compliance monitoring and adequacy of management supervision and supervision of representatives
staff trading and client order priority
The ASIC Market and Participant Supervision Participant Relationship team has been out meeting with brokers to discuss the new ASIC structure, contacts and ASIC priorities such as Market Integrity Rule compliance, unauthorised securities trading, discretionary managed accounts, compliance monitoring and the adequacy of management supervision.
Automated Order Processing
Participants are reminded that they are responsible for ensuring that their Automated Order Processing does not interfere with the efficiency and integrity of the market (MIR ASX Market 5.6.1).
ASIC has observed some behaviour in the market place that may indicate brokers are not ensuring the proper functioning of their Automated Order Processing systems. This is of particular concern to ASIC and will remain the focus of the ASIC market surveillance team.
Reconciliation notifications regarding client monies
MIR ASX Market 3.5.10 notifications regarding client monies can be submitted to ASIC through the firstname.lastname@example.org email. However brokers must consider their obligations to assess breaches under s 912 d of the Corporations Act.
Competition in market services
ASIC is preparing for consultation on the regulatory framework for competition in market services at the end of October, subject to a briefing of the newly elected Government.
ASIC will then consult and engage thoroughly with the industry. We encourage market participants to engage in the consultation process either directly with ASIC or via their industry association.
Market participants should contact ASIC for market integrity issues and ASX for operational issues. Contact ASIC’s Market and Participant Supervision group on 1300 029 454 and you will have these voice menu options:
Option 1 for real time market matters
Option 2 for other market related matters
Option 3 for Participant enquiries or matters
Option 4 for Market wide announcements.
Or you can reach the Market and Participant Team by email
email@example.com or through your relationship manager.
For more information