The Australian Securities and Investments Commission (ASIC) today released the findings of its latest assessment of the Bendigo Stock Exchange Limited (BSX).

Under the Corporations Act 2001, ASIC is required to conduct an annual assessment of how well the BSX is complying with its obligations to supervise its market. In this assessment, ASIC also examined whether the BSX has sufficient financial resources to operate and supervise its market.

ASIC has concluded that the BSX is complying with its statutory obligations to supervise its market and has sufficient financial resources to operate the market properly.

However, ASIC has identified some concerns about the robustness of the BSX’s conflict handling arrangements and the extent to which they are properly implemented.

‘We have recommended that the BSX takes a number of measures in relation to its conflict handling arrangements’, ASIC’s Director, Markets Regulation, Ms Tracey Lyons said.

‘ASIC has also recommended that the BSX strengthen some of its operational practices to address weaknesses in some areas of supervisory activity’, Ms Lyons added.

The BSX is currently considering ASIC’s recommendations.

In April this year, the BSX became a wholly owned subsidiary of NSX Limited, which is also the parent company of the Stock Exchange of Newcastle Limited. The markets of both licenses are still being operated independently.

The assessment report is available from the ASIC website at www.asic.gov.au or by contacting the ASIC Infoline on 1300 300 630.