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ASX calls for shareholder compensation if powers stripped

ASX calls for shareholder compensation if powers stripped

The federal government should compensate ASX Limited (ASX:ASX) shareholders if it proceeds in its efforts to strip ASX of its market supervision role, company CEO Robert Elstone said.

The Rudd government wants to transfer supervisory responsibility for the Australian stock exchange away from ASX Ltd to the Australian Securities and Investment Commission.

Any such move would entitle ASX shareholders to “fair value compensation for the intellectual and physical property rights that are acquired…as a consequence of the transfer,” Elstone said.

He cited as an example a similar situation which occurred when the New York Stock Exchange transferred supervisory functions to another regulatory authority.

Elstone added that it is too early to tell what impact the proposal wold have on ASX Limited’s balance sheet.

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