PerhapsI'm naive or simply optimistic but I wouldn't be too disillusioned by ASIC'sresponse.
ASIC is charged with maintaining the integrity of our financial markets. Theylicense and regulate the ASX. If ASIC was to comment publicly about allegedmisconduct of the ASX it could undermine confidence in the market. In thatsense I can understand why they couldn't be drawn into a public discussionabout your concerns or the action they may be taking as a consequence.
More generally, I'm not convinced the relationship between ASIC and the ASX isall that flash.
Weknow ASIC has been concerned about the potential for conflict between the ASX'scommercial and regulatory roles for many years.
https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Completed%20inquiries/2002-04/econ_stock/report/c03?print=1
https://www.copyright link/companies/asic-says-asx-should-do-more-to-remove-conflict-of-interest-perception-asic-says-asx-must-do-more-to-remove-conflict-of-interest-perception-20140805-jkblz
So I wonder what ASIC make of the ASX’s commercial expansion into new areasof business. Surely a more complex and entrepreneurial ASX simply creates morepotential conflicts and potential for scandal?
ASICmight find it a little galling watching their high paid colleagues at the ASX pushthe envelope on potential conflicts when it will be ASIC that cops the flackfrom parliament when the sh*t hits the fan.
(ASICboss earns $800K. ASX boss $3.9m. ASIC department heads approx $400K. ASX departmentheads $1.1m. I wonder if that grates on them a little?)
ASIChas copped a lot of criticism in the past decade over alleged regulatory andoversight failings. From the CBA/financial advisory scandal back in 2007through to the Banking Royal Commission in 2018; ASIC invariably cops a sprayin the media and parliamentary inquiries.
I think the Royal Commission was a watershed moment in terms of how we view thebanks. The blowback on ASIC has also seen them adopt a far more aggressivestance on regulation and prosecution.
https://www.copyright link/companies/financial-services/asic-spruiks-spike-in-active-investigations-20190219-h1bfqa
It’snot too hard to imagine that a more aggressive approach may extend to theiroversight of the ASX.
Against that background we have the ISX suspension. The ASX’sbehaviour in relation to the management of the suspension looks pretty appalling (IMO). I think(hope?) ASIC will be highly sensitive to the public complaints.
