A recent article in the AFR reports on the annual Stockbrokers Association of Australia (SAA) conference held recently in Sydney.
Stockbrokers at the conference voiced concerns that indirect brokers, who do not have the same level of regulatory oversight and capital requirements as they do, are able to set up shop and call their services “broking services”, while undercutting them in price and market share.
ASIC is continuing their review of Australia’s indirect brokers, following collapses of companies such as Sonray Capitial Markets and Lift Capitial. Initial findings indicate that there is a general lack of governance, compliance, controls and risk management in such companies.
ASIC’s proposal to include indirect brokers in their market integrity rules has been delayed at this stage.
How can Certainty help?
Certainty Compliance can assist you in understanding all your regulatory obligations, and ensure you have systems, policies and procedures in place to comply with them. Please contact a consultant on (02) 8324 5300 orenquiries@certaintycompliance.com.au
For further information:
ASIC targets loopholes in stockbroking, Matthew Drummond, AFR 7 June 2011