Working with ASIC

Regulatory oversight by ASIC

Australian Securities and Investments Commission (ASIC) is responsible for the administration of legislation regulating the financial system including the Corporations Act 2001.  This includes licensing of financial service providers across the whole spectrum of financial products and services, including market operators and clearing and settlement facility providers.

Further information

ASIC has a role to monitor and enforce compliance by ASX with its various obligations as a holder of an Australian market licence and Clearing and Settlement facility licences.  In accordance with section 794C of the Corporations Act, ASIC must assess how well a licensed market operator is complying with its obligations and whether it has adequate arrangements for supervising its markets.  Section 823C sets out similar requirements in relation to Clearing and Settlement facilities.  In its most recent annual assessment dated February 2006, ASIC concluded that ASX did have adequate arrangements for supervising its market and managing conflicts under its markets licence.

May 2007:  ASIC Annual Assessment of ASX, ACH and ASTC (PDF 104KB)

July 2006:  ASIC Annual Assessment of ACH and ASTC (PDF 64KB)

February 2006:  ASIC Annual Assessment of ASX (PDF 274KB)

A Memorandum of Understanding (PDF 878KB) governs the relationship between ASIC and ASX.  The MOU aims to minimise duplication of activity and promote cooperation, effective communication and mutual assistance between ASIC and ASX. 

Under the MOU, ASX is expected to:

  • Monitor and enforce compliance by Participants and listed entities with its Operating Rules;
  • Undertake regular education of Participants and listed entities to promote compliance with the Rules;
  • Maintain a close working relationship with ASIC to avoid unnecessary duplication of investigation and enforcement work;
  • Consult with ASIC before making public any information in relation to a current or possible future ASIC investigation or enforcement action; and
  • Maintain ongoing and effective communication in accordance with agreed procedures.

Meetings on the operation of the MOU take place quarterly between ASX and ASIC.  In addition, there are monthly meetings between senior supervision staff at ASX Markets Supervision and enforcement and compliance staff at ASIC to discuss operational and strategic supervisory matters common to both organisations.