Footnotes

Chapter 1 - The framework for the market supervision of Australia’s stock exchanges

[1]            The Treasury, Submission No. 5, p. 1.

[2]            NSX CALLS, eNewsletter Number 5, 11 December 2000 at www.newsx.com.au/wnews.

[3]            www.newsx.com.au/nsx.html.

[4]            Information obtained from the BSX web site at www.bsx.com.au.

[5]            Self regulation and the demutualisation of the Australian Stock Exchange, Australian Journal of Corporate Law, March 1999, Vol 10 (1), pp. 5-6.

[6]            ASX, Submission No. 2, pp. 10-11.

[7]            ASX, Submission No. 2,  p. 4.

[8]            Only public companies and public trusts are permitted to be listed on ASX. A public company or trust is one in which any member of the general public can acquire shares or units and there are no restrictions on the maximum number of shareholders or unitholders.

[9]            Information obtained from the glossary of sharemarket terms on the ASX web site, www.asx.com.au.

[10]          ASX, Submission No. 2, p. 6.

[11]          ASX, Submission No. 2, p. 6.

[12]          The Treasury, Submission No. 5, p. 1.

[13]          Explanatory Memorandum to the Financial Services Reform Bill 2001, p. 1.

[14]          Explanatory Memorandum to the Financial Services Reform Bill 2001, p. 14.

[15]          Explanatory Memorandum to the Financial Services Reform Bill 2001, p. 14.

[16]          Explanatory Memorandum to the Financial Services Reform Bill 2001, p. 87.

Chapter 2 - Advantages of the Current Framework

[1]           See Australian Securities and Investments Commission, Submission No. 8, p. 6.

[2]            See The Treasury, Submission No. 5,  p. 4.

[3]            ASX, Submission No. 2, p. 4.

[4]            ASX, Submission No. 2, p. 5.

[5]            Securities Institute of Australia, Submission No. 1, p. 1.

[6]            Chartered Secretaries Australia Limited, Submission No. 6, p. 2.

[7]            Chartered Secretaries Australia Limited, Submission No. 6, p. 2.

[8]            Evidence, p. 38.

[9]            Australian Shareholders’ Association, Submission No. 12, p. 1.

[10]          Australian Shareholders’ Association, Submission No. 12, p. 3.

[11]          Australian Shareholders’ Association, Submission No. 12, p. 5.

[12]          Model for Effective Regulation – Report of the SRO Consultative Committee of the International Organization of Securities Commissions, May 2000.

Chapter 3 - Disadvantages and Shortcomings

[1]            ASX, Submission No. 2, p. 4.

[2]            ASX, Submission No. 2, pp. 7-8.

[3]            ASX, Submission No. 2, pp. 7-8.

[4]            ASX, Submission No. 2, p.7.

[5]            ASX, Submission No. 2, p. 9.

[6]           Evidence, pp. 21-22.

[7]            Dr Shann Turnbull, Submission No. 3, p. 1.

[8]            Dr Shann Turnbull, Submission No. 3, p. 1.

[9]            Dr Shann Turnbull, Submission No. 3, p. 3.

[10]          Dr Shann Turnbull, Submission No. 3, p. 3.

[11]          Evidence, p. 28.

[12]          The Treasury, Submission No. 5,  p. 5.

[13]          IFSA, Submission No. 10,  p. 4.

[14]          Mr Ross Catts, Submission No. 9, p. 9.

[15]          Mr Ross Catts, Submission No. 9, pp. 2-3.

[16]          Quoted in Evidence, p. 55.

[17]          Evidence, p. 66.

[18]          ASX, Submission No. 2B, p. 9.

[19]          Evidence, pp. 23-4.

[20]          ASX, Submission No. 2B, p. 10.

[21]          Evidence, p. 23.

[22]          ASX, Submission No.2B, p. 9.

[23]          Evidence, p. 24.

[24]          Evidence, p. 10.

[25]          Boardroom Partners, Submission No. 11, p. 2.

[26]          Boardroom Partners, Submission No. 11, p. 5.

[27]          Boardroom Partners, Submission No. 11, p.5.

[28]          ASX, Submission No. 2B, p. 1.

[29]          This change follows controversy in mid 2000 when the ASX relaxed listing rule requirements applying to shareholder approval of employee incentive schemes. Under the listing rule change, which press reports suggested took many within the industry by surprise, approval requirements were reduced from 75% of shareholders to 50%.  IFSA subsequently disagreed with the change, urging company compliance with its Corporate Governance guidance notes instead of the lower ASX requirement. A major reason for controversy surrounding the change appears to be that it came into effect before many within the industry were even aware of it. ASX’s initiative to list proposed changes on its website should avoid future controversy of this nature.

[30]          ASX, Submission No. 2, p. 13.

[31]          Evidence, pp. 52-3.

[32]          Evidence, p. 53.

[33]          See discussion between Senator Conroy and Mr Humphry at Evidence, p. 22.

[34]          Computershare, Submission No. 4, p. 13.

[35]          ASX, Submission No. 2A, p. 2.

[36]          ASX, Submission No. 2B, p. 5.

[37]          Evidence, p. 30.

[38]          Evidence, p. 10.

Chapter 4 - ASX Supervisory Review Pty Ltd

[1]             ASX, Submission No. 2,  p. 14.

[2]            The ‘Review Group' will comprise entities which satisfy one of the following criteria:

1. their business is in direct competition with our business in a material way for ASX;
2. they hold a substantial shareholding interest in ASX;
3. we hold a substantial shareholding interest in them;
4. the entity ‘controls' an entity falling with paragraphs (a), (b) or (c). For this purpose ‘control' means the direct or indirect capacity to dominate decision making in accordance with AASB 1017: Related Party Disclosure; or
5. it is otherwise desirable for the entity to fall within the Group because of the potential for significant conflict of interest. [from ASX, Submission No. 2, p. 15]

[3]            Evidence, p. 26.

[4]            Evidence, p. 19.

[5]            Evidence, p. 143.

[6]           Evidence, p. 26.

[7]            Evidence, p. 27.

[8]            Media Release by Minister for Financial Services, 9 November 2000.

[9]            Evidence, p. 27.

[10]          Evidence, p. 12.

[11]          Evidence, p. 56.

[12]          Evidence, p. 63.

[13]          Evidence, p. 63.

[14]          Evidence, p. 39.

[15]          Evidence, p. 42.

[16]          Evidence, pp. 41-42.

[17]          Evidence, p. 109.

[18]          Evidence, pp. 69-70.

[19]          Since this evidence was taken, the ASX has established an alliance with the Singapore Stock Exchange. The exchanges opened the trading link on 20 December 2001. This issue is discussed in the following Chatper.

[20]          Evidence, p. 28.

[21]          Evidence, p. 2.

[22]          Evidence, p. 13.

[23]          Evidence, p. 13.

[24]          Evidence, p. 110.

[25]          Evidence, p. 40.

[26]          Evidence, p. 126.

[27]          Evidence, p. 30.

[28]          Evidence, p. 27.

Chapter 5 - Demutualisation, Listing and Alliances

[1]            The Treasury, Submission No. 5, p. 5.

[2]            ASX, Submission No. 2,  p. 15.

[3]            The Treasury, Submission No. 5, pp. 5-6.

[4]             ASX, Submission No. 2, p.18.

[5]            Evidence, p.31.

[6]            ASX, Submission No. 2B, p. 8.

[7]            Evidence, p. 136.

[8]            ASX, Submission No. 2B,  p. 8.

[9]            Evidence, p. 136.

[10]          Address by Ms Jillian Segal, Deputy Chair, ASIC to IOSCO conference, June 2001.

[11]          Evidence, p. 31.

[12]          ASX, Submission No. 2,  p. 9.

[13]          ASX, Submission No. 2, p. 19.

[14]          Evidence, p. 138.

[15]          Evidence, p. 31.

[16]          Evidence, p. 6.

[17]          Evidence, p. 161.

[18]          Evidence, p.14.

[19]          Evidence, p.15.

[20]          Securities Institute, Submission No. 1, p. 2.

[21]          Evidence, p. 69.

[22]          Dr Shann Turnbull, Submission No. 3, pp. 3-4.

[23]          ASX, Submission No. 2A, p. 19.

[24]          The Treasury, Submission No. 5, p. 5.

[25]          The Treasury, Submission No. 5, pp. 5-6.

[26]          The Treasury, Submission No. 5, pp. 5-6.

[27]         ASX, Submission No. 2, p. 16.

[28]          Evidence, pp. 22-3.

[29]          Evidence, p. 20.

[30]          IOSCO Technical Committee on Demutualisation, Issues Paper, June 2001, p. 12.

Chapter 7 - Effectiveness of Trade Practices Law

[1]            ACCC, Submission No. 7, p. 2.

[2]            ACCC, Submission No. 7, p. 3.

[3]           ACCC, Submission No. 7, p. 4.

[4]            ACCC, Submission No. 7, p. 5.

[5]            ACCC, Submission No. 7, p. 29.

[6]            Miller’s Annotated Trade Practices Act 2000/21st Edition, Russell V Miller, LBC, Sydney, 2000, p. 637.

[7]            Evidence, p. 91.

[8]            ACCC, Submission No. 7, p. 20.

[9]            Evidence, p. 92.

[10]          ACCC, Submission No. 7, p. 3.

[11]          Evidence, p. 52.

[12]          Computershare, Submission No. 4, p. 9.

[13]         Financial Services Reform Act 2001, s824A - s824C.

[14]          Computershare, Submission No. 4, p. 9.

[15]          ASX, Submission No. 2B,  p. 4.

[16]          Chartered Secretaries of Australia Limited, Submission No. 6, p. 3.

[17]          ASX, Submission No. 2B,  p. 21.

[18]          Evidence, p. 94.

[19]          Evidence, p. 88.

[20]          Evidence, p. 89.

[21]          Additional information supplied by the ACCC.

[22]          ACCC, Submission No. 7, p. 8.

Appendix 3 - Alternative models

[1]           Submission No. 2, Appendix 5.

[2]           United States Securities Industry Association, Reinventing self regulation, White paper for the SIA's Ad hoc Committee on Regulatory Implications of de-mutualisation, January 2000.

[3]           White paper, p.3.