What’s new
« back
Reforms to the Supervision of Australia's Financial Markets
2 December 2009
What's new?
Treasurer and the Minister for Financial Services, Superannuation and Corporate Law announced in August 2009 that the Australian Securities and Investment Commission (ASIC) would perform the supervision of real-time trading on Australia’s domestic licenced markets.
Treasury has released Exposure Draft Corporations Amendment (Financial Market Supervision) Bill 2010 which will transfer responsibility to ASIC for supervision and enforcement of market misconduct laws by broker participants of the Australian Stock Exchange (ASX) and other financial markets.
The ASX will retain responsibility for supervising the entities listed on them, and will remain responsible for monitoring compliance with their operating and Listing Rules.
Overview
The Draft Bill introduces a new type of rule, called a ‘market integrity rule’, to be made by ASIC. ASIC will be responsible for supervising compliance with these rules and other market misconduct provisions in the Corporations Act.
Penalties
The Draft Bill contains provision for a flexible infringement notice regime providing an alternative to civil proceedings, the results of which could be:
- A maximum penalty of $800,000
- Undertaking of remedial measures
- Public censures
- Suspensions for up to six months
- Disgorgement of profits
The maximum civil penalty that ASIC can set for a breach of a market integrity rule is $1,000,000.
What's next?
The Government intends that the legislation will be passed so that ASIC can undertake these functions in the third quarter of 2010.
How can Certainty help?
Certainty can assist you in understanding and implementing all your compliance obligations. Please contact a consultant on (02) 9238 8091 or enquiries@certaintycompliance.com.au
For further inofrmation:
Link to the Treasury website to view the Draft Corporations Amendment (Financial Market Supervision) Bill 2009: www.treasury.gov.au