Treasurer Scott Morrison announces shake-up of financial sector

OWNING a stake in the Australian Securities Exchange just got easier, according to Treasurer Scott Morrison.

Federal Treasurer Scott Morrison speaks at press conference in Sydney, Wednesday, March 30, 2016. (AAP Image/Mick Tsikas) NO ARCHIVING

THE Federal Government is opening the doors to competition in the clearing of shares which currently is the main domain of the Australian Securities Exchange.

Treasurer Scott Morrison said the government is absolutely committed to open and competitive markets which are “fundamental to a vibrant 21st century economy”.

“(It) will mean that, should a competitor to the ASX emerge, there will be arrangements in place for safe and effective competition, allowing for a transition to competition over a period of around 18 months,” Mr Morrison told reporters in Sydney today.

However, he conceded it was unlikely a competitor would emerge anytime soon.

“It is not likely at this point in time,” he said.

“What’s important right now is that we ensure that our arrangements here are as tight as they can be, that I think provide the potential for competition and keep the tension accord with the ASX in operating in a light competitive environment so I think these reforms actually tick all of those boxes.”

Should a competitor to the ASX emerge, there will be arrangements in place for safe and effective competition, says Treasurer Scott Morrison.

The changes reflect recommendations of the Council of Financial Regulators, which comprises the Reserve Bank, Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.

The treasurer also responded to a recommendation from the financial system inquiry that would relax restrictions on the ASX to allow it more flexibility in raising capital.

He said the ASX’s willingness to invest and trial new technologies was strongly supported by the government and is consistent with its financial technology or FinTech agenda.

“I want to help create an environment where our financial services sector can be both internationally competitive and play a central role in aiding the positive transition of our economy,” Mr Morrison said

Originally published as Treasurer Scott Morrison announces shake-up of financial sector