6 May 2009

Government Welcomes ASIC's Leadership Role in Global Report on Unregulated Markets and Products

Senator Nick Sherry, Minister for Superannuation and Corporate Law has today welcomed publication of the International Organisation of Securities Commissions (IOSCO) report Task Force on Unregulated Financial Markets and Products, and has particularly welcomed the role played by the Australian Securities and Investments Commission (ASIC) as co-chair of the taskforce.

The Report suggests a range of possible regulatory and industry reforms covering key market segments that have been of critical concern during the global financial crisis.

The Report focuses on the securitisation market, including asset-backed securities, such as residential mortgage backed securities and collateralised debt obligations, and on the credit default swap market, including development of central counterparty clearing mechanisms.

"Our national corporate regulator has played a global leadership role on this internationally important project, and I congratulate ASIC on representing Australia's interest in strong global financial markets."

"It's another example of the high-level role Australia has played in the development of global solutions to the financial crisis."

"I understand ASIC will be conducting an Australian and international consultation process for interested industry participants, and I look forward to the outcomes of that work."

"The Report has made a number of regulatory reform suggestions. I have today asked ASIC to work with Treasury to examine each of the interim recommendations in the context of our market and corporate legal framework and provide the Government with advice on potential reforms," said Minister Sherry.

IOSCO has also recently published reports on hedge fund regulation, short selling and credit rating agencies (CRAs), which strongly endorse the Rudd Government's decisions to implement major reforms to the market regulation of short selling and CRAs in Australia.

Further information on the report can be found on IOSCO website.