Mr David Knott, Chairman of the Australian Securities and Investments Commission (ASIC), today signed a Memorandum of Understanding (MoU) with Mr Andrew Sheng, Chairman of the Hong Kong Securities and Futures Commission (SFC).
The new arrangements will enable ASIC licensed managed investment scheme operators outside of Hong Kong to manage SFC authorised funds without having to apply for separate registration in Hong Kong.
‘This is a further important step towards international reciprocity of regulation. From the perspective of Australian fund managers, today’s initiative opens up new marketing opportunities without the requirement of additional licensing requirements in Hong Kong’, Mr Knott said.
‘Australia greatly values its close working relationship with the Hong Kong SFC and looks forward to further opportunities of this type throughout the Asia–Pacific region’, he said.
The MoU (Declaration on Cooperation and Supervision of Cross-Border Investment Management Activity) lays the groundwork for the recognition of Australia as an Acceptable Inspection Regime (AIR) under the SFC’s Code on Unit Trusts and Mutual Funds.
Under the MoU, the SFC and ASIC have agreed to exchange information and offer assistance to each other concerning the activities of fund managers licensed in one jurisdiction and also operating in the other jurisdiction. This regulatory co-operation facilitates ASIC in its supervision and inspection of fund managers that are licensed with the SFC and also operating managed investment scheme funds in Australia.
Background
Australia is an active participant in the International Organization of Securities Commissions (IOSCO). Mr Knott chairs the IOSCO Technical Committee, which is undertaking substantial work in streamlining international regulation, including acceptance of international accounting standards.
On 18 November 2002, ASIC released a discussion paper on principles for cross-border financial services recognition, which address issues relating to the regulation of foreign markets, products and services across international borders. ASIC is also finalising a policy on foreign financial service providers for release shortly.
End of release
Download a copy of