Market education fund on hold pending election
|
|
The idea for a new education fund that utilises money collected from market breaches has received a good hearing from Government, but everything is on hold pending the elections, according to the Australasian Compliance Institute (ACI).
The ACI has been raising attention to the fact that an education and research fund will be lost in the imminent transition of market supervision from the Australian Securities Exchange (ASX) to the Australian Securities and Investments Commission (ASIC). According to the law, any money collected by ASIC must go towards the Commonwealth Government’s consolidated revenue, whereas previously the ASX was able to place the funds collected from market breaches in the education fund.
The ACI met with both ASIC and members of the Treasury and ACI chief executive Martin Tolar said they received a good hearing. He said the Minister for Financial Services, Chris Bowen, was receptive to the ACI’s suggestion that the Commonwealth Government set up a new fund, administered by representatives of ASIC and members of the financial services industry.
“Everyone thinks it’s a good idea and that it should go ahead,” Tolar said. However, he added that frustratingly everything is pending the next elections.
“If there is a new minister, they may have different policies,” Tolar said. “Like many things, it has been put on hold pending the next election.”
The education fund under the ASX raised over $1 million and was intended to improve the performance of compliance and risk management practices within the broking industry and listed companies.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
