Asic consults on crypto asset-based ETPs and other retail investment products – Finextra

Asic consults on crypto asset-based ETPs and other retail investment products – Finextra

ASIC has today released Consultation Paper 343 Crypto-assets as underlying assets for ETPs and other investment products (CP 343), seeking feedback on proposals about exchange-traded products (ETPs) and other investment products that provide retail investors with exposure to crypto-assets.

Other investment products covered by CP 343 are listed investment companies, listed investment trusts and unlisted registered managed investment schemes.

ASIC considers that these products have unique features and risks which need to be recognised by market operators and product issuers in performing their functions and meeting existing regulatory obligations.

Key areas of focus for market operators and issuers in the Consultation Paper include:

identifying crypto-assets that are appropriate underlying assets;
establishing good practice in respect of pricing, custody, risk management, and disclosure.

ASIC Commissioner Cathie Armour said, ‘The proposals set out good practices for market operators and product issuers regarding crypto-asset ETPs and other investment vehicles that provide retail investors with exposure to crypto-assets.’

‘Market operators and product issuers need to be mindful of meeting their existing regulatory obligations when creating, operating and allowing such products, so they can be facilitated in a way that maintains investor protections and Australia’s fair, orderly and transparent markets,’ Commissioner Armour said.

Given the unique, evolving characteristics and risks involved with crypto-assets, ASIC considers it appropriate to consult widely on the proposals in this consultation paper.

While considerable discussions with stakeholders has already been undertaken, this consultation paper is
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