The ASX Education and Research Program (ERP) was established by the ASX Compliance board in 2007 as a measure to manage perceived conflicts that might arise if penalties imposed on market participants by ASX as market supervisor were applied to its own benefit. Since then, surplus monies arising from the penalties imposed by the ASX Disciplinary Tribunal, net of certain expenses incurred by ASX in bringing matters before the Disciplinary Tribunal, have been set aside and applied to the ERP. Monies in the ERP have been used to fund various education and research activities, including the cost of conducting training courses for participants on supervisory matters.
The responsibility for supervising real-time trading on Australia’s licensed markets and for monitoring the conduct of participants on those markets was transferred from ASX to ASIC on 1 August 2010. Accordingly, it is no longer appropriate that the ASX take a lead role in educating participants on supervisory matters, since they are matters for which ASIC now has regulatory responsibility.
The mission statement and terms of reference for the ERP have therefore been revised to reflect the changes in ASX’s supervisory responsibilities.
The mission of the ERP is to raise awareness of, and promote compliance with, ASX's operating rules (including its listing rules) and thereby promote confidence in ASX's markets and clearing and settlement facilities.
Terms of reference
The terms of reference for the ERP are to undertake activities in the interests of ASX's stakeholders which:
- raise awareness of ASX's operating rule requirements;
- improve the ability of listed entities to comply with ASX's listing rules;
- improve the ability of market, clearing and settlement participants to comply with ASX's operating rules;
- educate the market on trends and issues in compliance;
- contribute to a better compliance culture within ASX’s stakeholder groups; or
- otherwise promote confidence in ASX’s markets and clearing and settlement facilities.
Requests for funding
The ERP is willing to consider requests to arrange or fund education events or research projects, provided they comply with the ERP's mission statement and terms of reference above. Any requests in this regard should be forwarded to the ERP at the address below.
Email: email@example.com or write to:
ASX Education and Research Program
Level 1, 20 Bridge St
Sydney NSW 2000
Facsimile: 02 9227 0428
A note on the future of the ERP
With the responsibility for supervising real-time trading on Australia’s licensed markets and for the conduct of participants on those markets having transferred to ASIC, it is anticipated that the number of ASX enforcement matters and the aggregate level of penalties imposed by ASX against participants will both diminish significantly. Consequently, the ERP is unlikely to continue to receive the level of incoming funds from penalties it has received in the past and the amount of funds in the ERP will diminish over time as money is expended on new education and research initiatives. The Board of ASX Compliance intends to keep the operation of the ERP and the level of its funding under review and may decide to terminate the ERP if its continued operation becomes uneconomical.