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New proposals for the Market Disciplinary Panel

The Australia Securities and Investments and Commission (ASIC) announced new appointments to the Markets Disciplinary Panel (MDP) last week.

The regulator said the new appointment are:

  • Dan Ritchie from Macquarie Securities

  • Lisa Shand from Morgans

  • John Manchee from Credit Suisse

  • Ian Jones from Goldman Sachs

The regulator also announced it is seeking feedback regarding changes to the MDP policies and proposals.

“The MDP has achieved some significant regulatory outcomes, particularly over the last couple of years. We want to continue that momentum by streamlining and simplifying the policies and procedures to ensure the MDP continues to be in a position to deliver efficient and fair regulatory outcomes,” ASIC Commissioner Cathie Armour concluded.

The Consolation Paper 306 on the MDP was also released last week, and the regulator indicated that ‘comment’ closes on 15 January 2019, with the final regulatory paper to be released in February.

In the consultation paper, the regulator indicated that they are not looking to make any fundamental changes but to streamline it make cost more cost-effective.

Just a week before the release of this consultation paper, ASIC announced that the panel issued a $120,000 infringement notice to UBS Securities, with State One Stockbroking to pay $500,000 in penalties.

The consultation paper will consolidate RG 216, while looking at the overarching framework of the MDP and RG 225, as well as the practices and procedures of the MD, combining them into a single regulatory guide.

Key proposals for change:

  • Explicitly state the key factors that the panel takes into account when determining a penalty;

  • Where matters referred to the panel ‘results in’ an infringement notice, there will be no separate reasons given;

  • Market operators will not be in the panel’s remit;

  • Tier one matters will be determined by a single delegate; and

  • The panel will not be the decision-maker when it comes to accepting court enforceable undertakings.

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