ASIC has released its annual market assessment (Report 148) of IMBL Limited (IMBL).

ASIC has concluded that IMBL has adequate arrangements for the supervision of its market and clearing and settlement facility in accordance with the obligations under s792A(c) and s821A(c) of the Corporations Act 2001 (the Corporations Act).

IMBL is licensed to operate both a market, and a clearing and settlement facility for IMBL’s own shares.

Background

A financial market is defined as a facility through which offers to buy and sell financial products are regularly made. Anyone who operates a financial market in Australia must obtain a licence to do so, or otherwise be exempted by the Minister. Similarly, anyone who operates a clearing and settlement facility in Australia must obtain a licence unless exempted by the Minister.

As part of the conditions of granting a licence to operate either a financial market or a clearing and settlement facility, the licensee must supervise the market in accordance with Part 7.2 of the Corporations Act, and supervise the clearing and settlement facility in accordance with Part 7.3 of the Corporations Act.

Under the Corporations Act, ASIC is required to conduct an assessment of the extent to which licensed financial markets are complying with their obligations to supervise their markets. ASIC must do this at least once per year in relation to each licensee. ASIC can also assess how well a licensee is complying with its other obligations under the Corporations Act.