The paper presents preliminary views on the opportunities and risks emerging from shifts in public and private capital markets. It explores the changing dynamics in capital markets, in Australia and abroad, including declining listings on public markets, the rapid growth in investment capital allocated to private markets and the influence of superannuation funds on markets. 

Internationally, regulators are reviewing their regulatory settings in response to these changes in capital markets, with some focusing on strengthening their public markets and others moving to address vulnerabilities identified with transparency and investor protection in private markets. Key risks of concern include opacity, valuation uncertainty, conflicts of interest, illiquidity and leverage in private markets, which includes private equity and private credit markets.

Drawing on global trends and evidence about the Australian capital markets, this paper seeks to:

• facilitate discussion on the implications of changing market dynamics, to build understanding and consensus on issues that are important for the success of our capital markets and therefore our economy and of all Australians who participate in it,
• articulate ASIC’s preliminary views on key issues and risks, and to outline how ASIC's work has already shifted to account for these risks as markets have evolved,
• gather actionable ideas to enhance the operation of Australia's public and private markets, while ensuring continued market integrity and confident and informed participation in the financial system by investors and consumers.

Consultation closes 28 April 2025.