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ASIC is concerned about the shrinking ASX — but doesn't know how to fix it

The regulator is exploring whether the shift from public to private markets is permanent, and what role our $4 trillion super sector is playing in the trend.

Andrew Cornell
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ASIC chairman Joe Longo launched a major discussion paper into private and public markets and the role of superannuation. AAP.

The sheer scale of Australia’s superannuation system and what potentially could be a structural decline in public capital markets are top of mind for Australia's corporate and market regulator.

Those two issues dominate the Australian Securities and Investments Commission's new 60 page paper, Australia’s evolving capital markets, which ASIC chairman Joe Longo described as the most comprehensive piece of work in his tenure.

The paper asks major questions but draws no conclusions – which was precisely the point according to Longo.

“ASIC is concerned about the future of Australia’s public equity markets,” the paper states. “Deterioration in the quality, diversity and depth of our markets would have significant adverse effects on the economy and its liquidity and on Australians’ financial participation in these accessible and transparent markets.”