In August a new mutual recognition agreement was signed by ASIC, SEC and Senator the Hon Nick Sherry.

SDIA held confidential preliminary discussions with ASIC and Treasury on the proposed agreement earlier this year, which is aimed at promoting the benefits of cross border investment and capital formation. 

 

The new agreement demonstrates a broadening in policy by the US. It is the first such agreement entered into by the US, serving as a ‘..pilot exercise in building a cross-border regulatory infrastructure to address the increasing globalization of our securities markets’, SEC Director of the Office of International Affairs said.

 

The agreement will apply to Market Participants of both countries, and will expand the range of US institutional clients with whom Australian brokers can do business directly.

 

The arrangements will be supported by greater regulatory co-operation, and up-front disclosures to the relevant clients as to regulatory differences.

 

Initial applications for exemptions and approvals are expected to be considered by the regulators early in 2009.