In a speech Lessons learnt from market volatility and sub-prime (pdf). ASIC Commissioner Belinda Gibson listed her 4 lessons as follows:
1. Australia is very much part of the global economy and subject to its influences.
2. ASIC is a financial regulator and supervisor, not the legislator.
3. ASIC has an important role in influencing the market.
4. ASIC’s Strategic Review should result in ASIC moving closer to the market, and to all its stakeholders.
She also outlined five key market issues ASIC will be focussing on over the coming months, specifically responding to concerns emerging from the current market conditions.
Ms Gibson said the key areas are:
- Managed Investment Schemes (MIS) and the disclosure of risk;
- Credit Ratings Agencies (CRA);
- Listed investment vehicles; and
- Audit and accounting issues surrounding present valuation methodologies and disclosure for complicated financial assets; and
- Market surveillance for illegal trading activities.
Ms Gibson said that ASIC will continue to review sectors in the managed investment scheme industry to see how businesses operate and just how the market should be informed about the business models.
