ASX Referrals to ASIC
ASX works closely with ASIC, the government regulator with responsibility for monitoring and enforcing the Corporations Act. As a licensed market operator and provider of clearing and settlement facilities, ASX is obliged to notify ASIC of certain matters. These include:
- Suspected significant contraventions of the ASX Group Operating Rules or the Corporations Act, such as allegations of insider trading and market manipulation;
- Matters that may adversely affect the ability of a Market Participant to meet its obligations as a financial services licensee;
- Specific matters prescribed by law; and
- Action taken by the ASX Disciplinary Tribunal for breaches of the ASX Group Operating Rules.
The Memorandum of Understanding (PDF 878KB) between ASX and ASIC also provides guidance on the referral of supervisory matters from ASX to ASIC.
ASIC, rather than ASX, is conferred with the powers of civil and criminal enforcement.
Overview of total Referrals from ASX to ASIC
| FY09 | 2H FY09 | 1H FY09 | FY08 | |||
|---|---|---|---|---|---|---|
| Total | 88 | 43 | 45 | 92 |
A single Referral from ASX to ASIC may include more than one contravention of an ASX Rule or the Corporations Act.
ASX also cooperates with ASIC on broader enforcement issues facing the market. Some outcomes achieved by ASIC as a result of referrals or other forms of assistance, as disclosed on the ASIC website, include:
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16/02/2010 - Two NSW men charged with insider trading
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15/12/2009 - New South Wales man pleads guilty to insider trading
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09/10/2009 - Sydney man in court for insider trading offence
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17/08/2009 - ASIC bans Melbourne trader for five years
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14/08/2009 - Former Findlay broker banned for seven years
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10/07/2009 - Former Hogan Partners stockbroker permanently banned
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17/02/2009 - Former Tricom broker banned for six years – SA
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16/02/2009 - Brokers sentenced over market manipulation
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13/02/2009 - ASIC bans Perth broker for five years
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09/07/2008 - Wollongong adviser charged with market manipulation
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05/06/2008 - Rio Tinto complies with ASIC Infringement Notice
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01/02/2008 - Former Victorian Stockbroker sentenced
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21/12/2007 - Melbourne sharetrader sentenced on insider trading
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20/09/2007 - Former Chameleon Mining NL Directors charged
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05/09/2007 - ASIC obtains orders against Citrofresh International
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27/08/2007 - Former Victorian stockbroker pleads guilty
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11/05/2007 - Bondi man fined for contempt of court
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20/03/2007 - Promina pays $100,000 fine
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23/12/2005 - Former Adelaide stockbroker sentenced

