ASIC has signed a Consultation Agreement (Agreement) with the Financial Markets Standards Board (FMSB) to promote global standards for fair and effective wholesale financial markets. The Agreement formalises ASIC’s active interest in the development of global industry standards.
ASIC Chair Joseph Longo said, ‘ASIC welcomes the Agreement between ASIC and the FMSB. This Agreement will help us engage with the FMSB to promote good wholesale market practices.’
‘ASIC is committed to ensuring Australia’s financial markets are fair and efficient, and those who provide financial services demonstrate fairness, honesty and professionalism,’ concluded Mr Longo.
Fixed income, currencies and commodities (FICC) markets underpin and drive growth in Australia’s real economy. Given the global and interconnected nature of FICC markets, FMSB standards are relevant to Australian market intermediaries as they seek a global level playing field and benchmark their practices against industry peers.
While industry standards do not replace obligations under Australian law, the development and promotion of good industry standards can supplement principle-based laws and drive robust operational practices among market intermediaries.
The Agreement will facilitate the FMSB’s consultation with ASIC in the development of draft guidance and other publications, and provide ASIC with periodic updates on the FMSB’s strategy. While the Agreement enables ASIC to observe open sessions of certain FMSB meetings, it does not constitute ASIC’s implicit or explicit endorsement of FMSB’s publications.
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Background
The FMSB is an industry organisation focused on developing clearer guidance across asset classes and jurisdictions to increase market discipline and prevent repetition of bad behaviour. The FMSB promotes good practices in wholesale markets globally through the publication of and adherence to standards, good practice statements and spotlight reviews.