New legislation introduced in parliament today will make ASIC responsible for the supervision of Australia's financial markets.
The bill will remove the obligation on Australian market licensees to supervise their markets and will give ASIC additional powers, including the ability to make and enforce rules with respect to trading on such markets.
Minister for Superannuation and Corporate Law Chris Bowen said the decision to transfer responsibility to ASIC was a significant one and one that would put Australian financial markets in good stead for the future.
Under changes to the bill, the maximum penalty for a breach of a market integrity rule will be reduced to $1 million for an individual or corporation.
"Setting the maximum penalty level at $1 million is an appropriate level as it is equivalent to the maximum that the ASX (Australian Securities Exchange) can currently fine a market participant for a breach of an ASX rule," Bowen said.
The maximum pecuniary penalty payable when entering an arrangement with ASIC to avoid civil proceedings has also been lowered from 80 to 60 per cent of the maximum a court can order.
Bowen said the discount rate for avoiding civil proceedings provided a real incentive to enter an arrangement with ASIC.
Further details about how the new regime will work will be contained in regulations and ASIC's market integrity rules, which are still being developed.
