The Australian Securities and Investments Commission (ASIC) and the Japanese Financial Services Agency (FSA) will be in a stronger position to act against unlawful corporate behaviour after the Chairman of ASIC, Mr Jeffrey Lucy joined the FSA’s Commissioner Gomi today to sign a Statement of Intent Concerning Cooperation, Consultation and the Exchange of Information.

Mr Lucy welcomed the arrangement which encourages ASIC and the FSA to cooperate in the enforcement and supervision of laws governing securities and securities derivatives transactions in Australia and Japan.

‘The framework will improve the arrangement for providing assistance, obtaining information and the permissible use of that information’, Mr Lucy said.

Cross-border financial services transactions between Australia and Japan are significant and growing given our expansive trade relationship and increasing globalisation.

‘As the need to combat transnational fraud grows, it is important that regulators share information about illegal securities activities’, Mr Lucy said.

Information may be used in civil and administrative investigations and proceedings, and to assist a self-regulatory organisation’s surveillance or enforcement activities. Information can also be used to assist criminal investigations.

Mr Lucy said the Statement of Intent provides a framework for the exchange of information, which is supported by an Exchange of Notes between the Australian Embassy and the Japanese Ministry for Foreign Affairs in Japan on 26 August 2004.

‘It is the only ASIC bilateral arrangement that is reinforced by such a government initiative’, Mr Lucy said.

‘The Statement of Intent and corresponding Note Verbale is another positive outcome of the Trade and Economic Framework that reflects the commitment of both ASIC and the FSA to cooperate. Together we are able to promote high standards of regulation and exchange information in order to promote the confident and informed participation of investors and consumers in the financial system’, Mr Lucy added.