The Council of Financial Regulator has released its recommendations on reforms to the oversight of the country’s financial market infrastructure to ensure continued protection for investors, businesses and market participants.

 

The main recommendations include:

  • new powers to require certain market infrastructure to have key aspects of their operations located in Australia, where deemed appropriate, and be managed and governed by 'fit and proper' persons;
  • enhanced 'step in' powers for regulators to intervene in the event of infrastructure experiencing substantial difficulties; and
  • strengthened and clarified powers for regulators to give directions to operators of key market infrastructure and impose appropriate sanctions where licensees and their officers fail to comply with directions or licence conditions.

 

The Council, whose members include the Governor of the Reserve Bank, the Secretary of the Treasury, and the Chairs of both APRA and ASIC, advise that these changes are desirable to underwrite the continued stability of market infrastructure and robust oversight.

 

“I asked the Council to advise on potential reforms last year following my decision to prohibit the acquisition of ASX Limited by Singapore Exchange Limited,” Treasurer Wayne Swan said.