LONDON, U.K. – Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, held wide ranging discussions on financial market conditions and regulatory responses with Sir Callum McCarthy, Chairman of the UK Financial Services Authority (FSA) and Mr Chris Gibson-Smith, Chairman of the London Stock Exchange (LSE).
"Sir Callum and Mr Gibson-Smith are both at the coalface of supervisory and regulatory responses to ongoing issues in global financial and securities markets."
"The FSA and the LSE had very positive views on the Rudd Government's approach to managing the current issues in the market."
"Both authorities commended the Government for its considered response and endorsed our view that, overall, the regulatory model in Australia is robust - but agreed that boosting market transparency, such as for covered short selling, was the best way forward."
"US subprime issues, the impact of some types of short selling, views on stock lending, and the actions of the central banks on market liquidity were all on the agenda," said Minister Sherry.
Detailed discussions were also held on the issue of insider trading and the strategies being developed by UK authorities to combat such illegal activity.
"I reinforced to the FSA and LSE that Australia is committed to working with the UK and also the US on stamping out insider trading. In the coming months, ASIC and Treasury will submit detailed work to me as Corporate Law Minister on insider trading."
"The Rudd Government is not going to tolerate market manipulation of any kind," Minister Sherry added.
Minister Sherry's discussions also included the UK's plans for greater transparency of equity derivatives trading, the impact of multiple exchanges on market supervision, financial product disclosure standards and the Australian Government"s forthcoming Green Paper on Financial Services Reform, including national regulation of mortgage broking.
"I also discussed the ASIC restructure and the goal of bringing the market regulator closer to the market, something that was strongly endorsed," said Minister Sherry.
Minister Sherry also held discussions with the LSE's Director of Regulation, Mr Adam Kinsley; Mr Ian Mackintosh, Chairman of the UK Accounting Standards Board; Mr Paul Boyle, CEO of the UK Financial Reporting Council; Ms Kitty Ussher MP, Economic Secretary to the Treasury and Mr Gareth Thomas MP, Under-Secretary for Business, Enterprise and Regulatory Reform.
In relation to superannuation and retirement income issues, Minister Sherry met with the UK Secretary of State for Work and Pensions, the Right Hon James Purnell MP and the full House of Commons Work and Pensions Committee.