ASIC is consulting on proposals to refine and update ASIC’s regulatory guidance on the licensing regime for financial markets.

Consultation Paper 293 Revising the market licence regime for domestic and overseas operators (CP 293) proposes introducing a two-tiered market licence regime, based on a risk-based assessment. The second tier of licence will be able to facilitate a range of market venues, including specialised and emerging market venues.

The consultation paper also:

  • proposes updating and clarifying the guidance about how licensees may comply with specific licence obligations
  • proposes consolidating Regulatory Guide 177 (overseas market licensees) into the updated Regulatory Guide 177
  • sets out the relevance of the proposals for secondary trading in shares of eligible crowd sourced funding companies, and
  •   addresses implementation and transition matters.

The proposals follow the passage of the Corporations Amendment (Crowd-sourced Funding) Act 2017 (Crowd Sourced Funding Act), which amended Chapter 7 of the Corporations Act 2001 relating to the market licence regime.

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