The Federal Government has signalled its intention to improve local investor access to global markets with the release of a consultation paper.
The purpose of the paper, titled Cross Border Recognition: Facilitating Access to Overseas Markets and Financial Services, is for improved recognition of regulatory financial services and market regimes that exist in economies offshore. The paper is a joint initiative from Treasury and the ASIC.
“The measures canvassed in the consultation paper are to fine-tune Australia’s unilateral recognition mechanisms that apply to foreign financial markets, advisers and products,” Minister for Superannuation and Corporate Law Nick Sherry said.
“This fine-tuning will preserve regulatory protection for investors and preserve the greater choice and competition provided by foreign entities operating in Australia.”
Under the new proposed framework a financial services entity operating both domestically and overseas will only have to comply with the foreign regulatory obligations rather than all the Australian regulatory requirements.
The new rules would also see ASIC acknowledge foreign jurisdictions for certain financial products or services by way of an application from an offshore entity or regulator, or of its own initiative.
Currently ASIC recognition of overseas regulation does not require reciprocal recognition of Australian regulations internationally. The consultation paper will also review this arrangement.
Submissions on the paper should be forwarded to the government before July 25, 2008.
Treasury and ASIC will then issue a statement shortly afterwards outlining how the proposals will be implemented.
