ob体育

media release (19-204MR)

ob体育 updates guidance on the Markets Disciplinary Panel鈥檚 policies and procedures

Published

ob体育 has updated its regulatory guidance on the operation of the Markets Disciplinary Panel (MDP).

The MDP, which acts through a Division of ob体育, is a peer review panel that makes decisions about whether infringement notices should be given for alleged contraventions of the market integrity rules.

ob体育 has updated Regulatory Guide 216 Markets Disciplinary Panel (RG 216) to simplify and streamline the MDP鈥檚 policies and procedures, with the benefit of over eight years鈥� experience of the MDP model.

The changes follow a public consultation late in 2018 and are aimed at achieving fair and efficient regulatory outcomes and to assist market participants better understand the expectations of the MDP.

The key changes include:

  • the consolidation of RG 216 and Regulatory Guide 225 Markets Disciplinary Panel聽practices and procedures into a single, shorter guide;
  • using聽 any published infringement notice as the main communication vehicle by聽which the MDP鈥檚聽reasons are explained to the market participant, as聽well as for the benefit of market participants generally
  • removing聽the tables of factors going to penalty and replacing them with 4 key factors, being (1) the character of the conduct; (2) the consequences of the conduct; (3) compliance culture; and (4) remediation
  • excluding聽market operators from the MDP鈥檚 remit.

The guide has also been updated to reflect the amendments to penalties made by the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019. For conduct wholly occurring on or after 13 March 2019, the penalty that can be specified in an infringement聽notice can be as high as $3.15 million for each alleged contravention of any market integrity rule.聽聽聽聽聽聽

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