Market demutualisation and privatisation: The Australian experience
An address by Jeffrey Lucy AM FCA, ASIC Chairman, to International Organization of Securities Commissions (IOSCO), Amman 2004 Annual Conference, 20 May 2004.
The topic of capital market demutualisation and privatisation is an interesting one and is one in which, we in Australia, have considerable experience. I would like to share that experience with you today.
In particular, I would like to begin with a brief description of the Australian market structure and its regulation, and then explain the demutualisation road that we have travelled. Finally, I will discuss with you our observations and thoughts on market demutualisation from a regulatory perspective, given the Australian experience.
Our own capital market demutualisation experience has been an evolutionary one, with the Australian legislation today, providing a clearer picture of the division of responsibilities between market operator and regulator (ASIC).
Fundamentally, 'front-line' regulatory responsibilities in Australia sit with the market operator. Our structure is underpinned by the view that there are real advantages to having a market operator with public regulatory responsibilities that is able to use its closeness to the market to monitor broker activity and intervene quickly as required.