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04-211 ASIC and ASX sign supervisory MOU
A new agreement to improve the efficiency of market supervision by minimising overlap and increasing regulatory cooperation has been signed by the Australian Securities and Investments Commission (ASIC) and the Australian Stock Exchange (ASX).
The new Memorandum of Understanding (MOU) recognises that ASIC and ASX have complementary roles in relation to the oversight of the market and clearing and settlement facilities offered by ASX, and the conduct of brokers and listed entities. The new MOU replaces three existing MOUs entered into by the then Australian Securities Commission and the ASX between 1992 and 1997.
The MOU sets out, in a more streamlined manner, expectations in relation to the supervisory activities that each party is required to undertake to meet their statutory obligations.
For the first time, the MOU will be a public document. Greater transparency about the communication and cooperation between ASIC and ASX should reinforce confidence in the market and streamline procedural requirements for users. It should also strengthen the market’s confidence that it is supervised by a system that is both robust and flexible, and able to meet both the needs of business and the legitimate expectations of investors.
The full text of the MOU is available from www.asic.gov.au or www.asx.com.au.
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