The Chairman of the Australian Securities and Investments Commission (ASIC), Mr Jeffrey Lucy today welcomed the Memorandum of Understanding (MOU) entered into between ASIC and the Securities and Exchange Commission of Pakistan (SECP).

The MOU, signed by Mr Lucy and Pakistan’s High Commissioner to Australia, Mr Babar Wahid Malik, on behalf of the Chairman of the SECP, Dr Tariq Hassan, establishes a framework for mutual assistance and the exchange of information between ASIC and the SECP.

Recognising the increasing international activity in the financial markets, and the corresponding need for cooperation between the relevant national authorities, ASIC and the SECP have formalised a framework that will facilitate the exchange of information. The MOU has been developed to ensure compliance with the respective securities and futures laws or regulatory requirements of Australia and Pakistan.

‘The MOU will improve the arrangement for providing assistance, obtaining information and the use of information by the securities regulators of our countries’, Mr Lucy said.

‘As the need to combat transnational fraud grows, it is important that regulators share information about illegal securities activities. ASIC and the SECP have a strong relationship and I look forward to continuing to work with our colleagues in Pakistan to protect consumers and business interests at home and abroad ’, Mr Lucy said.

Cross-border financial services transactions between Australia and Pakistan are significant and growing given our improving trade relationship, and increasing globalisation. The signing of the MOU is one of a number of agreements signed by the two countries this week, which illustrate Australia’s strong relationship with Pakistan.

An agreement on counter-terrorism co-operation was also signed by Australia and Pakistan today during Pakistani President General Pervez Musharraf’s visit.

Information exchanged between ASIC and the SECP may be used in civil investigations and proceedings. This information can also be used to assist other law enforcement or regulatory bodies, such as the stock exchanges, to enforce laws relating to insider dealings, market manipulation and other fraudulent practices.

Furthermore, this information can be used for supervising and monitoring stock markets, as well as ensuring that registered persons are considered fit and proper.

‘Together we will work 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