On 26 February 2025, the Australian Securities and Investments Commission (ASIC) published a discussion paper titled Australia’s Evolving Capital Markets: A Discussion Paper on the Dynamics Between Public and Private Markets. The document examines trends in Australia’s capital markets, discussing the increasing shift from public to private market investments and the potential implications for investors, financial institutions, and regulatory frameworks. ASIC is seeking stakeholder feedback on whether current regulations adequately support both market structures and what reforms may be necessary to ensure market efficiency, transparency, and investor protection. ASIC has set a deadline of 28 April 2025 for responses, to gather actionable recommendations to inform future regulatory adjustments and enhance the efficiency and integrity of Australia’s capital markets.
The discussion paper discusses the rapid growth of private capital markets in Australia and globally, raising concerns about valuation risks, liquidity constraints, and regulatory oversight. ASIC in the discussion paper, notes that the number of public listings in Australia has declined, raising the question whether this trend is driven by structural market changes or cyclical economic factors. ASIC acknowledges the role of superannuation funds in capital formation and their increasing influence in directing financial flows within the Australian financial market, to assess whether regulatory adjustments are needed to maintain market integrity and financial stability in both public and private investment markets.
The discussion paper explores whether additional regulatory oversight of private market investments is required, particularly in relation to risk disclosure, valuation practices, and investor protection mechanisms and considers potential market reforms that could enhance transparency, competition, and capital access for companies and investors.
ASIC has set a stakeholder feedback deadline of 28 April 2025. Following the consultation period, the Australian regulator will assess submissions and issue an update later in the year, which could inform future regulatory policy changes.
(Source: https://asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-021mr-advancing-australia-s-regulatory-roadmap-for-public-and-private-capital-markets/, https://asic.gov.au/regulatory-resources/find-a-document/reports/dp-australia-s-evolving-capital-markets-a-discussion-paper-on-the-dynamics-between-public-and-private-markets/)
