Lightly regulated markets to receive more scrutiny
Markets that were largely left alone by regulators prior to the global financial crisis will be more actively managed as a result of a series of post crisis reviews, and the current wave of changes may not be the end of the reform process.
In a speech to the 35th IOSCO Annual Conference of the International Organization of Securities Commissions, Australian Securities and Investments Commission (ASIC) chairman and Joint Forum Commission chairman Tony D'Aloisio said regulators must also maintain a sense of urgency to have changes made in each jurisdiction, otherwise opportunities for key reform might be missed.
Further to the current round of proposed changes, regulators needed to re-examine the conceptual framework that had previously underpinned the approach to the less regulated sector.
“We need to re-examine those assumptions and assess further changes which may be needed,” he said.
The changes will result in the previously less regulated markets being regulated similarly to other markets, such as exchange traded markets, and may also result in the industry being more heavily regulated than it may want as a result of the crisis, D’Aloisio said.
Proposed securities and investments changes had been well targeted, and responded to the problems which were thrown up by the crisis in a way that balanced market efficiency with improved investor protection, D’Aloisio said.
“Although a lot of work has been done, there is a way to go before we can provide clarity and certainty to the markets, and we need to maintain a sense of urgency,” he said.
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
