ASIC signs mutual recognition agreement with US regulator
The Australian and US governments have paved the way for easy access to each other’s financial systems in an historic move by the US.
The Australian Securities and Investments Commission (ASIC) and the US Securities and Exchange Commission (SEC) last week signed a mutual recognition agreement providing Australian investors and financial advisers with greater access to US markets.
The arrangement means retail investors will be able to access the US market directly through Australian stockbrokers. The initiative is also expected to reduce red tape and compliance costs as brokers face just one set of regulations.
The SEC and ASIC have also agreed to consider providing certain exemptions to the market exchanges and brokers of securities in each country.
Investment and Financial Services Association CEO Richard Gilbert joined the delegation in Washington to witness the signing of the historic agreement.
“This agreement signals to the international market that Australia has a well-regulated financial system, is progressively reducing compliance costs and is facilitating cross-border financial services,” he said.
This is the first time the US has recognised any other country’s jurisdiction. It is Australia’s third mutual recognition agreement following similar agreements with New Zealand and Hong Kong.
The Australian Securities and Investments Commission (ASIC) and the US Securities and Exchange Commission (SEC) last week signed a mutual recognition agreement providing Australian investors and financial advisers with greater access to US markets.
The arrangement means retail investors will be able to access the US market directly through Australian stockbrokers. The initiative is also expected to reduce red tape and compliance costs as brokers face just one set of regulations.
The SEC and ASIC have also agreed to consider providing certain exemptions to the market exchanges and brokers of securities in each country.
Investment and Financial Services Association CEO Richard Gilbert joined the delegation in Washington to witness the signing of the historic agreement.
“This agreement signals to the international market that Australia has a well-regulated financial system, is progressively reducing compliance costs and is facilitating cross-border financial services,” he said.
This is the first time the US has recognised any other country’s jurisdiction. It is Australia’s third mutual recognition agreement following similar agreements with New Zealand and Hong Kong.