|
|
US - Australia Mutual Recognition Talks |
|
| Focus: |
Mutual recognition arrangement between the Australian and US securities markets. |
| Services: |
Financial Services |
| Industry Focus: |
Financial Services |
| Date: |
19 June 2008 |
| Author: |
Piny Ly, Lawyer, Sydney |
|
Dibbs Abbott Stillman Lawyers restructured on 1 March, 2009.
The Sydney, Brisbane and Canberra offices are now DibbsBarker.
|
On 29 March 2008, Prime Minister Kevin Rudd and US Securities Exchange Commission (SEC) Chairman Christopher Cox announced that the SEC, ASIC and the Australian Treasury Department were formally discussing the possibility of a mutual recognition arrangement for the two nations' securities markets.
This is important news for Australia and the United States and represents a major step towards a possible bilateral arrangement. IFSA has also welcomed the news, stating that it signals to the world that Australia is "open for business".
The arrangements will aim to enhance cross border law enforcement co-operation between the two countries, increase investor access to well- regulated capital markets and facilitate regulatory co-ordination. It could also mean that:
-
in the longer term, capital flows between the two countries will increase, leading to improved liquidity in foreign and host markets;
-
the cost of capital in both markets will significantly decrease, benefiting investors and listed entities in both countries;
-
the ASX could operate trading screens in the US with minimal regulation by the SEC; and
-
Australian stock brokers could provide advice on Australian listed securities in the US under reduced regulatory requirements.
Next steps
Following the discussions, the SEC and ASIC each agreed to undertake a formal assessment of each others' regulatory systems to determine the extent to which each jurisdiction produces a comparable level of investor protection. The results of these assessments will be subject to public comment before being finalised. These results will provide the basis for continued discussions between the SEC and ASIC in relation to mutual recognition and the extent to which US and Australian market participants could operate in each other's markets. It would also articulate the additional co-operation needed between the SEC and ASIC to ensure the integrity of both markets and the continued protection of investors.
We will advise our readers when the results of the formal assessments are released for public comment.
The Prime Minister's media release can be accessed at:
http://www.pm.gov.au/media/Release/2008/media_release_0150.cfm
For further information on this issue, please contact a member of our Financial Services Reform team listed on the right hand side of the screen.
|
Recent Publications
21 May 2012
IP Australia has introduced a new online “TM Check” to assist Australian Business Name applicants identify potential impediments to use of their proposed business name.
16 May 2012
A recent decision may provide businesses with an easy target when defending their brands from misuse by competitors under the Google Adwords Program in Australia.
15 May 2012
Commonwealth Compensation decisions for the week ending 4 May 2012.
|
