Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has welcomed the announcement by the Australian Securities and Investments Commission regarding a mutual recognition agreement with Hong Kong.
ASIC and the Hong Kong Securities and Futures Exchange have announced an agreement on mutual recognition that would give Australian managed investment schemes greater access to the Hong Kong market and indirectly to the mainland Chinese market.
"I am delighted by the potential benefits that this agreement can deliver for both Australian investors and managed investment schemes."
"Mutual recognition would benefit Australian retail investors because they would have access to a broader choice of financial products, while Australian managed investment schemes would be relieved from a wide range of Hong Kong regulatory requirements on the basis of their compliance with Australian requirements," Minister Sherry said.
"It has been an exciting time for Australian investors with regard to new opportunities for mutual recognition of securities with foreign markets."
The Hong Kong agreement follows in the footsteps of a joint Treasury-ASIC consultation paper, Cross Border Recognition: Facilitating Access to Overseas Markets and Financial Services, released on 16 June, which outlines ways in which cross-border recognition can help Australian investors to more effectively access other well regulated capital markets, advisers and products.
On 13 June, Minister Sherry and New Zealand Commerce Minister Lianne Dalziel launched the Agreement on the Mutual Recognition of Securities Offerings at a signing ceremony at the New Zealand Parliament. This agreement allows for the same securities offer documents to be issued in both countries, and is considered to be world leading.
"These initiatives will reduce the regulatory burden for Australian investors and financial product providers, while continuing to ensure Australia's attractiveness to foreign investors as a financial hub," Minister Sherry said.