Very soon the financial market of Australia will undergo reforms. This became clear after the Federal Government's proposed legislation to bring about changes in the current system, made it through the Parliament.

The bill now allows the Australian Securities and Investments Commission (ASIC) to act as a supervisory authority. Besides, it also gives way for the license system to go away.

Till now, the licensees in the market had to supervise the same as well.

ASIC will now have the power to make rules regarding the trading of shares and will also have the authority to fully enforce the same.

It also means that ASX Ltd. will have to give away some of its supervisory power; something which will help in increasing competition in the market since new rival exchanges can now come up.

The details about the bill were given by Financial Services Minister, Chris Bowen.

Talking about the change, Bowen said that he was very happy that the bill that he had introduced last month got passed and that will be very helpful for the market.

Draft regulations are in process and the bill will be in effect from third quarter of 2010.