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 Emirates Securities and Commodities Authority (ESCA).

The MOU, signed by Mr Lucy and Her Excellency Sheikha Lubna Al-Qassimi, the Minister of Economy and Planning and Chair of the Emirates Securities and Commodities Authority, establishes a framework for mutual assistance and the exchange of information between Australia and the United Arab Emirates (UAE).

‘The MOU will improve the arrangement for providing assistance, obtaining information and the permissible use of information between our two countries’, Mr Lucy said.

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

Cross-border financial services transactions between Australia and the UAE are significant and growing given our expansive trade relationship, and increasing globalisation. The signing of the MOU is one of a number of activities this week that illustrate Australia’s strong relationship with the UAE. The Australia-United Arab Emirates Joint Ministerial Commission Meeting will also be held in Canberra.

Information exchanged between the two regulators may be used in civil and criminal 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 in relation to companies, securities and derivatives, as well as collective investment schemes. Such information can also be used for the surveillance and monitoring of stock markets.

Mr Lucy said the MOU provides a framework for the exchange of information and mutual cooperation that will enable ASIC and the ESCA to regulate the provision of cross-border financial services more effectively.

‘Together we will be 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.