ASIC market supervision update Issue 2

Previous issues

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 market.participants@asic.gov.au 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.

Contact ASIC

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

market.participants@asic.gov.au or through your relationship manager.

More about contacting ASIC about market supervision issues

For more information

Please see www.asic.gov.au/market-supervision

 

Last updated: 30/03/2021 09:35