The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, today announced that the transfer of supervisory responsibility for Australia's domestic licensed financial markets will take place on 1 August 2010.
"I have previously said that I would only provide for the transfer of supervision to take place once I was completely satisfied that all the necessary preparations have been made," Mr Bowen said.
"I am pleased to say I have spoken with industry bodies and market participants and they have expressed to me their broad support for ASIC's readiness to take on the new role on 1 August 2010."
Minister Bowen made the announcement at the formal opening of ASIC's new Sydney office at 100 Market Street.
"ASIC has worked closely with the industry to prepare for this significant change. It is a direct result of these efforts, and particularly ASIC's close engagement with the ASX and key stakeholders, that Australia's financial market is well-prepared for this handover of responsibility.
"I would also like to thank the ASX for its co-operation with ASIC, which will help ensure that this technically complex transfer occurs as smoothly as possible."
In August 2009, the Government announced its intention to transfer market supervision responsibilities from market operators, such as the Australian Securities Exchange, to ASIC during the third quarter of 2010.
Minister Bowen today also announced his intention to consent to ASIC's market integrity rules and to the consequential changes to the operating rules of the ASX Group.
"The market integrity rules and the new operating rule books for the ASX and SFE will together form the new rules for the ASX and SFE markets from 1 August," Mr Bowen said.
The Minister's in-principle consent to the ASIC market integrity rules will provide certainty to the market as to the rules which will govern it from 1 August. Formal approval will be granted once the Corporations Amendment (Financial Market Supervision) Act 2010 commences on 1 August.
The Act was proclaimed by the Federal Executive Council earlier today.
The Federal Executive Council also formalised the Corporations (Fees) Amendment Regulations 2010, whichprovide details of the proposed fee structure that ASIC will charge to recover the costs of supervision.
8 July 2010