Australia's corporate watchdog the Australian Securities and Investments Commission will be given enhanced power to audit the country's exchanges and report to the Government on how well they are supervising their markets, the Minister for Financial Services & Regulation, Joe Hockey, announced today.
The Financial Services Reform Bill will give ASIC powers to audit compliance by a market with its obligations under the Corporations Law.
The Minister's announcement complements the Australian Stock Exchange's decision to implement new market supervisory arrangements.
As part of this initiative, ASX will set up a separate corporate entity, ASX Supervisory Review Pty Ltd, to monitor and oversee ASX's supervisory functions and be positioned to report on the general policy direction, funding and administrative arrangements of ASX's market supervision operations.
"My number one commitment is the integrity of Australia's markets. By enhancing accountability we are better safeguarding the integrity of our markets," the Minister said.
"Giving our national corporate watchdog these audit powers, along with steps being taken by exchanges like ASX's supervisory initiative, will ensure this integrity
"I welcome ASX's announcement as it shows the exchange is responding to market developments and pressures.
"It shows ASX's commitment to sound supervisory arrangements. Through this we will have a strong, stable and well functioning market.
"Importantly, these initiatives put the supervision of Australia's markets at the international forefront of accountability."