The Federal Government today welcomed the release of a report by the Australian Securities and Investments Commission into the independence of research analysts in the investment banking industry.
"The review will be a very valuable contribution in shaping the final legal and policy framework for CLERP 9 to address analyst independence," the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said.
"ASIC's examination did not uncover any indications of the wrongdoing that occurred on Wall St - and we should not underestimate the significance of that - however weaknesses have been identified in a number of areas, notably how firms manage conflicts of interest, but there was encouraging evidence that industry is addressing these issues.
"CLERP 9 will further address this critical area by inserting into the law a new requirement for industry to manage conflicts of interest.
"This will provide ASIC with a strong legislative basis to develop a policy statement on the matter and to take enforcement action."
Senator Campbell said the CLERP 9 legislation would be introduced into Parliament this year and become effective from 1 July next year.
22 August 2003
Contact: Wayne Grant 08 9421 1755 or 0407 845280