The Minister for Financial Services, Superannuation and Corporate Law, the Hon Chris Bowen MP, today released a consultation paper and draft legislation facilitating reforms to the supervision of Australia's financial markets.
This follows on from the announcement on 24 August this year by the Treasurer and Minister Bowen that the Australian Securities and Investments Commission (ASIC) would take over the supervision of real-time trading on all of Australia's domestic licensed markets. The preparation of legislation is the first step towards implementing that change.
The Government is consulting on a new system for rule making and enforcement of those rules by ASIC in relation to domestic licensed financial markets in Australia.
"The Bill and the consultation paper propose the establishment of a robust framework for financial market supervision which will ensure the continued integrity of Australia's financial markets into the future," Minister Bowen said.
Key elements of the exposure draft of the Bill are:
- The removal of the obligation on domestic financial market operators to supervise their financial markets. Instead, market operators will be responsible for the operation of their markets and the supervision and enforcement of their operating rules, which relate to operational issues.
- The provision of a new type of rule called a 'market integrity rule' which will be made and enforced by ASIC.
- The establishment of an infringement notice regime in relation to a contravention of the market integrity rules.
The consultation paper seeks comments on:
- the proposed means of ASIC recovering the cost of supervision;
- ASIC establishing a disciplinary panel made up of financial industry experts;
- providing ASIC wider powers to give directions; and
- proposed transitional arrangements.
The exposure draft of the Bill and the consultation paper can be downloaded at www.treasury.gov.au.
Comments can be provided by email to marketsupervision@treasury.gov.au by 24 December 2009.
2 December 2009