Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary for Social Inclusion and the Voluntary Sector) Share this | Hansard source

I thank Senator Fifield for indicating the opposition’s support and for outlining the effects of the Corporations Amendment (Financial Market Supervision) Bill 2010 and Corporations (Fees) Amendment Bill 2010. I will not reiterate all the intent of the bills.

The bills give effect to a government decision to transfer the responsibility for the supervision of Australia’s domestic licensed financial markets from market operators to ASIC. The reforms set out in the bills will change the way financial markets in Australia are supervised. These changes will further enhance the integrity of Australia’s financial markets and will contribute to the goal of making Australia a financial hub. It is important that the supervision of Australia’s financial markets is transparent and independent. It is also important that any actual or perceived conflicts of interests be avoided. Consequently, it is far more appropriate for an agency of the government to perform this important function. The decision to transfer responsibility for supervision of Australia’s financial markets to ASIC is a significant one—I acknowledge that—but it is one that will stand the operation of Australia’s financial markets in good stead into the future. By removing the requirements for the markets to supervise themselves, these bills also meet Australia’s G20 commitment to protect the integrity of financial markets by avoiding conflicts of interest. This reform is also in line with moves towards centralised or independent regulation in other leading jurisdictions.

I agree with Senator Fifield that ASIC is very well placed to take on the role of whole-of-market supervisor and has been fully resourced to perform this role. ASIC’s role as whole-of-market supervisor will enhance the stability and integrity of the market and, in addition, the bills provide ASIC with a wide range of enforcement options that will enable ASIC to respond swiftly to emerging market situations. Supervision by ASIC will consolidate the current individual supervisor responsibilities into one entity by streamlining supervision and enforcement and by providing unified supervision of trading on the market. As Senator Fifield so rightly said, industry is seeking support for this legislation from the opposition and is seeking the certainty that this legislation provides. I commend the bills to the Senate.

Question agreed to.

Bills read a second time.