Regulatory Overview

Jane Ecclestone Ian Johnstone Kevin Lewis

2011ANNUAL

CONFERENCE

2011ANNU

AL

CONFERENCE

Asia–Pacific regulatory overview

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ASIC is an active participant in international discussions on regulatory issues:• Council of Financial Regulators - considers G20 requirements• IOSCO and its 7 standing committees: accounting, secondary markets, market

intermediaries, investment management, enforcement, CRAs and systemic risk• IOSCO Asia-Pacific Regional Committee• Joint Forum – securities, banking and insurance regulators

(major project on regulation of conglomerates)• FSAP review by IMF benchmarking ASIC by reference to IOSCO standards

ASIC’s ongoing priority: fair and efficient markets

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• Material information is available to all the market in a timely manner:– continuous disclosure (yes, again)– managing confidential information– managing soundings

• Stamp on insider trading and market manipulation• Controls for market volatility and algorithmic trading (including

high frequency trading)

ASIC’s ongoing priority: confident and informed investors

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• Better prospectuses:– business models are clear– risks are clear and up front

• Significant transaction reporting – related party dealings• Misuse of “underlying profits” reporting• Enhanced governance standards – what we expect of directors• Proper management of shareholder voting, particularly of voting

exclusions

Member Jurisdictions

G20

Spain

Hong Kong

The Netherlands

Singapore

Switzerland

International Organisations

BIS

ECB

EC

IMF

OECD

The World Bank

International Standard-

Setting Bodies & Other

Groupings

BCBS (banking)

IAIS (insurance)

IOSCO(securities)

IASB (accounting)

CPSS (payment & settlement)

CGFS(market stability)

International Regulatory ArchitectureF20 – Financial Stability Board

Joint Forum

CASE STUDY: OUTSOURCING

Joint Forum

Outsourcing principles adopted by

IOSCO Basel IAIS

implemented by

National Regulators

applied to

Financial Institutions

SHIFT OF CAPITAL TO THE EAST …

So, Some Common Themes For The Wider Region

• High levels of savings

• Powerful sovereign wealth funds

• Deepening Capital Markets

• Need to unlock Family Capital

• ….while lifting Standards of Governance

• ….and maintaining System Stability

What’s Coming Down The Line (Globally)

• Growing global convergence and less national divergence

• Accountability through to FSB

• Greater attention to big financial institutions

• Ever increasing attention to governance

ASX: Upcoming Developments

Kevin A. Lewis 5 December 2011

CSA Conference

‘Good fame and character’ listing rule changes Updated Appendix 1A Revised Guidance Note 1 (admissions) Revised Guidance Note 4 (foreign entities listing on ASX) Revised Guidance Note 12 (significant changes to

activities) ASX Listing Rules review issues paper: reserves and

resources disclosure rules for mining and oil & gas companies

CGC gender diversity reporting

Upcoming developments

Listing Rule Guidance Notes refresh: Guidance Note 9 (corporate governance) Guidance Notes 15 and 15A (fees) Guidance Note 16 (trading halts) Guidance Note 17 (waivers and in principle decisions) Guidance Note 27 (trading policies) Guidance Note 30 (quotation of additional securities)

Guidance Note 8 (continuous disclosure) - consultation draft end Q1 2012

Upcoming developments (continued)