Monday, April 14, 2008

Our ASX is a joke

Michael West on the Australian Securities Exchange in this morning's Age and Sydney Morning Herald.

"The regulators have just become defendants.

Opes Prime had warned both the ASX and ASIC in February that it was in breach of its liquidity requirements. Both failed to act. Any client of Opes whose exposure to the collapsed Prime broker increased between that time - at the latest - and the collapse in March presumably has an action against the regulators.

ASX supervision boss Eric Mayne should fall on his sword immediately. ASX chief executive Robert Elstone should, in the least, consider his position. The Government moreover should now move to strip the ASX of its supervisory powers. Its dual role as a profit-driven company and market supervisor has become a joke.

Thousands of company directors across the country have been personally and professionally affected by the collapse of Opes and Lift Capital. They cannot possibly take the ASX seriously, and they have to report to it. Legions of investors likewise - they have to believe in it."

Here's the full thing.