ASIC has released its assessment of Golden Circle Limited (GCL).

The report covers the period 19 August 2007 to 4 March 2008, being when trading in GCL's market ceased. GCL was admitted to the official list of National Stock Exchange of Australia Limited (NSXA) on 10 March 2008 and GCL shares commenced quotation on NSXA on 19 March 2008. The Minister cancelled Australian Market Licence (Golden Circle Limited) with a commencement date of 8 August 2008. Accordingly, this will be ASIC's final assessment of GCL as a market licensee.

ASIC has concluded that GCL had adequate arrangements for the supervision of its market in accordance with the obligations under s792A(c) of the Corporations Act (the Act) during the assessment period.

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.

As part of the conditions of granting a licence to operate a financial market, the licensee must supervise the market in accordance with Part 7.2 of the Act.

Under the 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 Act

ASIC’s task is to assess if, over the period in question, GCL had adequate arrangements in place to supervise its markets (including to manage its conflicts of interest) and its clearing and settlement facilities under ss792A(c) and 821A(c) of the Corporations Act.

Download the report