Mr Jeffrey Lucy, Chairman of the Australian Securities and Investments Commission (ASIC), today released the findings of ASIC’s most recent assessment of the Australian Stock Exchange (ASX).
‘ASIC’s assessment shows that ASX’s market is well run and supervised and that investors can have confidence in the market. We have suggested some changes to ASX's supervisory arrangements so that ASX can continue to respond effectively to the changing demands on its role as a market supervisor’, Mr Lucy said.
Under the Corporations Act, ASIC must conduct an annual assessment of how well ASX is complying with its obligations to supervise its market.
This is the second assessment ASIC has undertaken. ASIC’s report to the Government concludes that ASX has adequate arrangements for supervising the market, including arrangements for:
- handling conflicts between its commercial interests and the obligation to operate the market in a fair, orderly and transparent way
- monitoring the conduct of participants, and
- enforcing compliance with its rules.
The report identifies some areas where ASX should strengthen its supervision and compliance arrangements, to ensure it can continue to comply with its obligations in the future. Key recommendations are that ASX should:
- accelerate steps to restructure its supervisory areas to ensure a more co-ordinated approach and provide clearer lines of accountability
- review its arrangements for managing conflicts of interest, and
- work towards greater consistency in monitoring and enforcing listing rules.
‘I am pleased ASX has already acted on a number of the recommendations in the report, and indicated it will change a number of other practices. ASX took an important step earlier this year to enhance its regulatory role by establishing a single division responsible for managing all of its core supervisory functions’, Mr Lucy said.
The assessment report is available on our website at www.asic.gov.au.
End of release