Regulation: ASIC to take over supervision of ASX
The Australian government has today announced a major shake-up in the regulation of the Australian Stock Market. ASX's regulatory function is to be transferred to ASIC.
It's been a bone of contention for some time: how, critics ask, can a public company be both a part of a market and supervise that market? By definition there is at least a conflict of interest - and at worst there is the potential for market abuse, some say.
And so, today, The Treasurer and the Minister for Financial Services, Superannuation and Corporate Law have said that, effective sometime in Q3 2010, supervision of financial markets and market participants will be transferred from ASX to ASIC.
But it is not a wholesale transfer of ASX's regulatory function - and nor is only ASX the only market affected.
Market operators such as ASX will retain supervision of listed entities.
It will also, says the government, allow ASIC to have a bird's eye view of the market to help in decision making when a new entrant wishes to open a market in Australia.
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