The two bodies have signed a consultation agreement to promote global standards for fair and effective wholesale financial markets.
In a statement on Thursday, the corporate regulator said this agreement formalises ASIC’s interest in the development of global industry standards.
The Financial Markets Standards Board (FMSB) is a practitioner-led change agent that sets guidance across asset classes and jurisdictions to safeguard market discipline.
ASIC chair, Joseph Longo, said: “ASIC welcomes the agreement between ASIC and the FMSB. This agreement will help us engage with the FMSB to promote good wholesale market practices.”
“ASIC is committed to ensuring Australia’s financial markets are fair and efficient, and those who provide financial services demonstrate fairness, honesty and professionalism,” Mr Longo continued.
According to the corporate regulator, FMSB standards are relevant to Australian market intermediaries given the global and interconnected nature of fixed income, currencies and commodities markets, which drive growth in Australia’s real economy.
The agreement will see FMSB and ASIC work together on the development of draft guidance and other publications, with the FMSB set to provide the local regulator with regular updates on its strategy.
ASIC cautioned that industry standards do not replace obligations under Australian law; instead, they are intended to “drive robust operational practices among market intermediaries”.
The agreement takes effect from the date of execution and will continue to have effect for two years.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
