The report sets out the findings of ASXSR arising out of its review of ASX supervisory activities and the funding of these activities for the twelve months to 30 June 2003, which are:
- the ASX policies and procedures for those areas with supervisory activities were adequate to support the ASX Group in complying with its specific statutory obligations as a licensed market operator and clearing house under the Corporations Act, with the exception of the CHESS policies and procedures which ASXSR was unable to form a view largely as a result of ASX's restructuring of clearing and settlement operations;
- the level of funding and resources devoted by the ASX Group to its supervisory activities was sufficient and substantial;
- ASX had in place and maintained appropriate controls and arrangements for commercial and employee conflicts of interest; and
- the procedures in place governing Review Group Entity and Review Participant oversight and their respective operation in practice was satisfactory.
The report includes details of the conflict handling role played by ASXSR in ASX supervisory decisions, and considers the complex matter of ASX technology and supervision.
The Chairman of ASXSR, Mr David Hoare, said "The report is based on the on-going comprehensive review by ASXSR and builds upon the work undertaken and reported in last year's report. It has been pleasing to note that the ASX Group continues to play a significant role in ensuring the highest standards of market integrity, the notable example during our reporting period being the establishment of the ASX Corporate Governance Council and release of its Principles of Good Corporate Governance and Best Practice Recommendations."
A copy of the report is available on ASXSR's website at www.asxsr.com.au.
