The Corporate Disclosure Co-Regulatory Model: Dysfunctional and Rules in Limbo

Abstract

Issues around potential or actual conflicts of interest of the Australian Securities Exchange (ASX) as a monopoly market operator and market co-regulator have received considerable academic and media attention. However, there are other significant issues arising from the co-regulatory framework that have not been discussed in the public arena. The ASX disclosure listing rules are integral to an informed market. However, these rules might best be described as in limbo. Neither the ASX nor the Australian Securities and Investments Commission seem to be responsible for administering or enforcing the rules as stand-alone regulation. Policy clarification is therefore sought on the status of the ASX listing rules and the extent to which these rules can be, and are in fact, monitored and enforced within the current regulatory structure.