ASIC outlines expectations for debt capital markets

23 September 2020
| By Laura Dew |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has released its report on market practices in debt capital markets and outlined its expectations for Australian financial service licensees (AFSLs).  

Report 668 ‘Allocations in debt capital market transactions’ (REP 668) stated it expected AFSLs to:  

  • Identify and manage potential conflicts of interest when making allocation recommendations; 
  • Have effective policies and procedures for identifying and managing confidential and market-sensitive information; 
  • Have processes to ensure that information provided to issuers and investors (including updates) was accurate and not misleading or deceptive; and 
  • Have active and effective supervision and monitoring for DCM transactions. 

The regulation followed a report by the International Organisation of Securities Commission (IOSCO) issued this week which helped regulators to identify and address conflicts of interest in the role of intermediaries in debt capital raisings. This could include pricing of debt securities, quality of information provided to investors and allocation of debt securities.  

ASIC said the better practices outlined in REP 668 were “consistent” with the IOSCO report. 

ASIC Commissioner, Cathie Armour, said: “All licensees should review ASIC’s findings and consider whether their controls for the allocation process in DCM transactions – including policies, procedures and monitoring – are appropriate and sufficiently robust”. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 12 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago