ASIC denies agitating for private markets policy change

The Australian Securities and Investments Commission (ASIC) has denied suggestions that its recent foray into capital markets is aimed at applying pressure for Government policy change.

Reacting to question on notice from Senate Estimates prompted by its discussion paper on capital markets and private credit, ASIC denied that it was seeking to draw conclusions about the need for change to the regulatory framework.

ASIC’s response to the questions posed by Senate Economics Reference Committee chair, NSW Liberal Senator, Andrew Bragg, have come amid close scrutiny of private credit prompted by the release of the ASIC discussion paper.

The discussion paper also preceded a reported decision by publicly-listed financial advice group, Count Limited, to not include some Metrics Partners funds from its approved product lists (APLs).

Research and ratings house, SQM Research also cited ASIC’s discussion paper when deciding to place private debt fund offerings on “watch”.

Specifically asked by Senator Bragg whether ASIC was “agitating for any policy change”, ASIC chair Joe Longo told the Estimates Committee hearing that there were a number of reasons including a lack of transparency and the need for more data.

ASIC’s formal response to the Bragg’s questions acknowledged that its discussion paper posed “questions designed to deepen and sharpen ASIC’s understanding of how Australia’s capital markets operate, and the answers will inform ASIC’s priorities and work program in the future”

“The discussion paper does identify the need for robust data to identify and respond to risks arising in private markets as mentioned by Chairman Longo,” it said/

“Apart from this, the paper does not draw conclusions about whether any changes to the regulatory framework are needed and is not advocating for policy change.”