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19-204MR ASIC updates guidance on the Markets Disciplinary Panel’s policies and procedures
ASIC has updated its regulatory guidance on the operation of the Markets Disciplinary Panel (MDP).
The MDP, which acts through a Division of ASIC, is a peer review panel that makes decisions about whether infringement notices should be given for alleged contraventions of the market integrity rules.
ASIC has updated Regulatory Guide 216 Markets Disciplinary Panel (RG 216) to simplify and streamline the MDP’s policies and procedures, with the benefit of over eight years’ experience of the MDP model.
The changes follow a public consultation late in 2018 and are aimed at achieving fair and efficient regulatory outcomes and to assist market participants better understand the expectations of the MDP.
The key changes include:
- the consolidation of RG 216 and Regulatory Guide 225 Markets Disciplinary Panel practices and procedures into a single, shorter guide;
- using any published infringement notice as the main communication vehicle by which the MDP’s reasons are explained to the market participant, as well as for the benefit of market participants generally
- removing the tables of factors going to penalty and replacing them with 4 key factors, being (1) the character of the conduct; (2) the consequences of the conduct; (3) compliance culture; and (4) remediation
- excluding market operators from the MDP’s remit.
The guide has also been updated to reflect the amendments to penalties made by the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019. For conduct wholly occurring on or after 13 March 2019, the penalty that can be specified in an infringement notice can be as high as $3.15 million for each alleged contravention of any market integrity rule.