The Australian Securities and InvestmentsCommission (ASIC) will focus on five key market issues in the coming months in response to concerns over current conditions.
These issues include managed investment schemes (MIS) and disclosing risk, credit ratings agencies, listed investment vehicles, auditing and accounting issues surrounding present valuation methodologies and disclosure for complicated financial assets, and market surveillance for illegal trading.
ASIC commissioner Belinda Gibson made the announcement at the annual Investment and Financial Services Association national conference. She told those assembled that ASIC would review sectors in the MIS industry to see how the market can be informed about the business models and how they operate.
“It is perhaps self evident to say that where a MIS is in financial difficulties, we will want to focus management on liquidity, redemption practices and valuations,” she said.
She also said that the review was looking at the extent to which investors rely on credit ratings agencies and how the agencies look at conflicts of interest, transactions involving listed investment vehicles and valuation accounting.
Gibson said ASIC was conducting the reviews to continue promoting confidence in Australia’s market integrity.
