ASIC Extends Cooperation Agreement with FMSB on Wholesale Market Standards to 2029

Key Takeaways

• ASIC has extended its Consultation Agreement with the Financial Markets Standards Board (FMSB) by three years, to 25 September 2029.
• The extension deepens ASIC's engagement in shaping global wholesale market standards, but ASIC states that its participation is not an endorsement and that industry standards do not replace obligations under Australian law.
• Compliance teams should treat FMSB materials as informative good practice, not as a safe harbor.

Deep Dive

ASIC has extended its Consultation Agreement with the Financial Markets Standards Board (FMSB) by three years, to 25 September 2029. The extension deepens ASIC's engagement in shaping global wholesale market standards, but ASIC states that its participation is not an endorsement and that industry standards do not replace obligations under Australian law. Compliance teams should treat FMSB materials as informative good practice, not as a safe harbor.

The extension continues a cooperation framework first signed in September 2022 and previously extended in 2024 to 25 September 2026. Under the Agreement, FMSB consults ASIC when shaping draft standards, guidance materials, and other publications, and gives ASIC periodic updates on its strategy. ASIC also notes the increased Australian connection with the FMSB Board of Directors. The announcement imposes no new legal obligations on regulated entities. It does signal that ASIC is closely tracking, and may be informally influencing, the content of global wholesale market standards.

For compliance teams, the most important element is ASIC's explicit caveat. Its participation does not constitute implicit or explicit endorsement of FMSB publications, and industry standards do not replace obligations under Australian law. Firms should therefore not assume that adopting an FMSB Standard, Statement of Good Practice, or Spotlight Review satisfies Australian requirements, such as those under the Corporations Act 2001, market integrity rules, or conduct obligations. Conversely, ASIC's involvement makes it more likely that FMSB-aligned practices will inform supervisory expectations and benchmarks for what constitutes reasonable conduct among market intermediaries.

The key timeline is the new expiry date of 25 September 2029. No firm-level deadlines arise from the announcement. The Agreement and the extension letter are available through ASIC's related links and should be reviewed for the precise scope of the cooperation.

Recommended actions:
- Map current wholesale market policies, such as those on trading conduct, benchmarks, information handling, and market abuse controls, to relevant FMSB publications and Australian legal requirements.
- Document any gap analyses showing that FMSB alignment is supplemental to, not a substitute for, Australian law compliance.
- Monitor FMSB consultations on draft standards and consider contributing through industry bodies or FMSB membership, since ASIC's input at the drafting stage may preview its supervisory focus.
- Brief front-office and conduct risk stakeholders on the distinction between good practice guidance and binding obligations.

Overall risk impact is low in the near term, with no direct compliance burden. The main risk is misinterpretation: over-reliance on FMSB standards as evidence of compliance could create regulatory exposure. The upside is earlier visibility into emerging expectations for market intermediaries, which supports proactive control enhancements.

Source: Australian Securities and Investments Commission