IFSA has congratulated Prime Minister Kevin Rudd on a proposal to achieve mutual recognition of securities markets with the US.

On his visit to the US, PM Kevin Rudd met with Chairman of the US Securities and Exchange Commission Christopher Cox, later announcing the mutual recognition agreement, to be finalised by the end of the year.

IFSA CEO Richard Gilbert told insuranceNEWS.com.au the deal would give Australia’s financial services industry the opportunity to market its products in a very large market, and vice versa.

He says it also gives consumers greater choice.

“This is about opening up the rest of the world to Australia,” he said. “Australia in many areas of goods and services has very open access and open trade and this is consistent with that trade.

“The important thing is that the most senior politician in our land made this announcement, meaning various people in government agencies have been given a clear message.”

The change means the ASX will be able to operate trading screens in the US with minimal regulation.

Mr Gilbert says the next issue to open up the market will be on how the industry pursues double tax agreements, free trade agreements and other bilateral agreements as well as a mutual understanding between regulators.

“By delivering the message in New York, the PM has effectively signalled to the world that Australia is ‘open for business’,” he said.