ASX powers may go to ASIC

Calls are increasing for the Australian Securities Exchange to be stripped of its regulatory powers. The government is expected to be advised by its senior officials to transfer the ASX's market regulation role to the Australian Securities and Investments Commission to address concerns about the performance of the two bodies over recent months with investors losing money in corporate collapses. A survey of 65 major companies conducted by Deloitte found that 37 per cent believed that the ASX and ASIC were not doing their jobs properly and another 23 per cent were not sure if they were. As part of the shake-up, it is expected that ASIC will be given new disciplinary tools with faster but less onerous penalties, and that the number of its staff involved in market supervision would increase.

Source: The Australian Financial Review