Legislation reforming the way financial markets in Australia are supervised passed the Senate today, paving the way for transfer of market supervision responsibility to the Australian Securities and Investments Commission (ASIC).
The Minister for Financial Services, Superannuation and Corporate Law, the Hon Chris Bowen MP, said the Bill would enhance the integrity of Australia's financial markets, giving effect to recommendations contained in the Australian Financial Centre Forum Report.
"I am pleased that the Parliament has passed the Bill I introduced last month, allowing ASIC to progress its preparations for assuming supervisory responsibilities," Mr Bowen said.
"The transfer of supervision to ASIC is important for ensuring the continued integrity of Australia's financial markets and will contribute to the goal of making Australia a financial hub."
The Bill contains three key measures:
- It removes the obligation on Australian market licensees to supervise their markets.
- It provides ASIC with the function of supervising domestic Australian market licensees.
- It provides ASIC with additional powers, including the power to make rules with respect to trading on such markets and additional powers to enforce such rules.
The transfer of supervision will come into effect in the third quarter of 2010.
Draft Regulations to support the Bill are currently being developed and will be made available for stakeholder consultation shortly.
A consultation draft of ASIC's market integrity rules for the Australian Securities Exchange and Sydney Futures Exchange was released for consultation on Friday 24 February.
11 March 2010