Handbook

The broad aim of this course is to examine the structure and regulation of markets for corporate securities. The study is primarily a legal analysis although it considers some financial theory relevant to legal responses to market operations. Topics include: the legal structure of co-regulation of securities markets including the role and powers of Australian Securities & Investments Commission (“ASIC”) and the Australian Securities Exchange (“ASX”); the efficient market hypothesis and its implications for mandatory corporate disclosure and prospectus regulation; prospectus disclosure and liability; the licensing of securities dealers and investment professionals; the conduct of securities business; abusive trading on secondary markets, including stock market manipulation and insider trading.

Main Topics

• Structures, institutions and actors in Australian securities markets; current influences towards the globalisation of financial markets; the development and philosophy of Australian financial services law
• The efficient market hypothesis; the mandatory disclosure regime; prospectus regulation
• Prospectus liability and civil liability
• Regulation of market licensees under the Corporations Act, as amended by the Financial Services Reform Act; the structure of co-regulation of securities markets; the structure, powers and authority of the Australian Stock Exchange in the regulation of securities markets; the status and general concerns of stock exchange listing and business rules; the role of the ASX in the maintenance of an informed market
• The role and powers of the Australian Securities & Investments Commission in the regulation of financial markets; investigation and examination powers with respect to breaches of the Corporations Act
• The licensing of financial services providers
• The conduct of financial services providers including an examination of the legal structure of stock exchange transactions and the consequent obligations of brokers and clients; the incidents of the broker-client relationship
• The regulation of insider trading
• Abusive trading on secondary markets, including the elements of market manipulation offences.