International Law

The Treasury and ASIC have issued a joint consultation paper,  Cross border recognition: Facilitating access to overseas markets and financial services. The consultation paper invites comment on proposals for cross border recognition of financial markets, financial services and disclosure about investments.

Under existing arrangements, Australia can unilaterally grant recognition to foreign financial markets, advisers and collective foreign investment schemes to operate in Australia. However, the consultation paper has identified some scope for improvements to the administration of the existing regime, including a new framework for mutual recognition.

The joint consultation paper contains proposals to:

• refine ASIC?s current framework of unilateral recognition as stated in ASIC Regulatory Guide 54 Principles for cross border financial services regulation: Making the regulatory regime work in a cross border environment; and
• develop a mutual recognition framework for application in agreements between Australia and an overseas jurisdiction that ensures the integrity of financial markets and protects investors.
• The consultation paper seeks to obtain the views of the users and providers of financial services, financial markets and those involved in raising capital about how the initiatives outlined in the consultation paper will assist Australian investors and enhance Australia?s position in the global economy.

Comments on the proposals may be made by 25 July 2008.