ASIC Discussion Paper on the dynamics between public and private markets

On 28 April 2025, AFIA provided a submission to ASIC’s Discussion Paper on the dynamics between public and private markets in Australia. The paper considers the regulatory and economic questions posed by the global rise of private equity and credit.

AFIA’s submission notes that there are a range of different non-bank financial intermediaries (NBFIs). In reality, different financial firms do different things - from simple lending in competition with the banks through to investment, market-making, hedging and other important market-based functions. Private credit and non-bank lenders perform different activities and serve different forms of credit demand in the market, areas usually unserved by banks.

Australia’s financial system relies on efficient markets, to allocate Australia’s scarce financial and other resources to their greatest benefit, supporting productivity and prosperity. Markets lie at the heart of our economic growth. Any regulatory intervention into private markets should have the goal of lifting living standards and prosperity for Australians front of mind.

AFIA submits that policymakers should resist the temptation to reach for regulation to address volatility and uncertainty via quick-fix solutions. Such overreach stifles investment, innovation, and efficient capital mobilisation and allocation. In-fact, regulation should be adjusted to make capital allocation easier - for example, by streamlining the regulatory requirements of debt security issuance.

 View the PDF here.