ASIC has released the ‘Advancing Australia’s evolving capital markets: Discussion paper response’ report which outlines a forward-looking agenda to strengthen the nation’s capital markets and ensure it continues to be an efficient, attractive, and globally competitive market to invest in.
The report is a roadmap for unlocking opportunities and tackling emerging risks in the country’s public and private markets by embracing new capital flows and technologies, keeping pace with evolving investor needs, and making it easier for business and growth capital.
The roadmap draws on critical findings from ASIC’s new surveillance into the private credit sector. It builds on the private credit expert insights released in September, along with industry insight from submissions received from some 100 sources in response to ASIC’s discussion paper.
ASIC is open to reconsider the potential of dual class shares where careful consideration of the merits and risks are undertaken and appropriate safeguards are proposed.
It also states that it sees merit in non-discretionary trading plans for company insiders and will continue to engage on the idea.
ASIC Chair Joe Longo says this roadmap is the launchpad for action – not the finish line, adding Australia should be bold and seize the opportunities ahead, “so that our markets remain strong, dynamic and globally competitive”.
Longo says most developed countries are grappling with the same changes and there are significant opportunities for Australia.
“This roadmap lays out the choices and future of Australia’s markets. We want our markets – private and public – to grow”
“This roadmap lays out the choices and future of Australia’s markets. We want our markets – private and public – to grow. That growth means stronger businesses, more jobs and a boost to our economy,” he adds.
“Strong markets have strong market integrity. We want to lay the foundations for managed investment schemes and private markets to sustainably thrive for the future benefit of business and investors.
“We see enormous opportunity for public and private markets to thrive and grow together especially as they embrace new technology and innovation.
‘At the heart of this roadmap is a clear message, that Australia and ASIC want to be backers, not blockers of investment and capital.”
Roadmap ‘timely’: ASX
The Australian Securities Exchange (ASX:ASX) supports ASIC’s commitment to maintaining robust and transparent markets.
ASX Group Executive, Markets and Listings Darren Yip says ASIC’s report recognises that there is a need to continually evolve regulatory settings to meet the changing needs of issuers and investors.
“ASIC’s roadmap is a timely and important step in ensuring Australia’s public markets remain globally competitive. We welcome ASIC’s focus on practical reforms that will support innovation, improve access to capital, and ensure our markets continue to deliver for companies and investors,” says Yip.
“It’s encouraging to see ASIC take forward a number of ideas raised in ASX’s submission, to ensure Australia remains a globally competitive place to list, including streamlining IPO processes, reviewing listing requirements, and exploring new frameworks to support market integrity and growth.
“We also remain supportive of competition that contributes to strong and effective capital markets in Australia. We have a strong value proposition for corporate listings and our listings business competes with many other local, regional and global exchanges and continues to offer one of the world’s leading listings venues with over 2,000 listed entities.”
Last month, the ASX announced that it will take responsibility for future editions of the ASX Corporate Governance Principles and Recommendations, supported by a newly established independent advisory group.
This forms part of a broader program of work underway at the exchange, including recent consultation on proposed changes to the Listing Rules relating to shareholder approvals and dual-listed entities
Write to Adam Orlando at Mining.com.au
Images: iStock & Unsplash
