Australia and US partner on securities regulation
Richard Gilbert
The Australian Government has signed an agreement with the United States Securities and Exchange Commission (SEC) regarding regulatory exemptions to allow US and Australian stock exchanges and brokerages to operate in both countries without being separately regulated.
When the agreement is implemented, the exemptions will allow Australian stock exchanges and brokers regulated by the Australian Securities and Investments Commission (ASIC), to offer their services to certain types of US investors and firms without being subject to most SEC regulations. Similarly, US stock exchanges and brokers can offer their services to Australian financial firms and wholesale investors.
The Investment and Financial Services Association (IFSA) has welcomed the announcement, believing it furthers Australia’s goal of becoming a world financial services hub.
“The signing of this historic agreement in Washington is yet another clear indication from the Australian Government that it is committed to positioning Australia as an international financial centre,” said the chief executive of IFSA, Richard Gilbert.
ASIC chairman Tony D’Aloisio said: “This arrangement reflects the importance of promoting the freer flow of capital in providing wider investment opportunities for Americans and Australians where sound market integrity and investor protection regulatory regimes are in place.”
A key element of the agreement is an Enhanced Enforcement Memorandum of Understanding that allows greater regulatory co-ordination between ASIC and the SEC. It will apply to all Australian and US market activity.
Ethiopis Tafara, the director of the SEC Office of International Affairs, said: “Over the past several years and continuing to this day, there has been increased interest by US investors in foreign securities. The SEC-Australia mutual recognition agreement recognises this investor interest and serves as a pilot exercise in building a cross-border regulatory infrastructure to address the increasing globalisation of our securities markets.”
Recommended for you
With Sanlam Private Wealth coming under ASIC pressure regarding the number of responsible managers in its business, law firm Holley Nethercote explores what the role entails and how to stay on the right side of the law.
Insignia Financial has granted CC Capital access to select company information in the hope of securing an improved offer from the private equity firm.
Recruitment agency Robert Walters has revealed the expected salary ranges for Australian financial advisers in 2025, with one particular state seeing a decline.
As global PE firms scope out the Australian wealth management industry, Finura predicts which other local names may potentially receive a takeover offer this year.
