ASIC and the Financial Industry Regulatory Authority (FINRA) of the United States have today entered into a Memorandum of Understanding (MOU) to promote and support greater cooperation between the two regulators.
The MOU establishes a strong framework for mutual assistance and the exchange of information between ASIC and FINRA, to help ensure that high standards of market integrity and consumer protection are maintained in both jurisdictions. Among other things, the agreement will help the regulators to investigate possible instances of cross-border market abuse in a timely manner; exchange information on firms under common supervision of both regulators; and allow more robust collaboration on approaches to risk-based supervision of firms.
The agreement was signed by ASIC Chairman, Tony D’Aloisio and FINRA Chairman and CEO, Richard Ketchum. ASIC and FINRA have a long history of cooperation in cross-border cases affecting both markets.
‘Because the US and Australian financial markets are highly globalized, it is crucial to both agencies that we have effective cooperation agreements with key partner jurisdictions.
‘This MOU will enhance the supervision of financial markets in both Australia and the US. This is particularly important in light of ASIC’s new market supervision responsibilities,’ Mr D’Aloisio said.
‘Today’s agreement is a true indication of the global reach of the capital markets’, Mr Ketchum said.
‘ASIC and FINRA will be able to share information more freely on firms we both oversee and collaborate more closely in dealing with cross-border fraud to better protect investors in the US and Australia.’
ASIC is Australia’s corporate, markets and financial services regulator. It works to ensure Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers. As markets regulator, ASIC oversees 16 financial markets. It is committed to markets operating with integrity and in a fair, orderly and transparent way. From the third quarter of this year, ASIC will take over responsibility for front line regulation of real time trading in Australia’s domestic licensed markets. As financial services regulator, ASIC licences and monitors the activities of more than 4,800 financial services businesses to ensure they operate efficiently, fairly and honestly. ASIC also works to protect retail investors and financial consumers of all financial products and services, including credit. It works with Australian and international regulators on the regulatory reform agenda in financial markets, and gives advice to Australia’s Government to aid its policy formation and decision making. For more information, please visit www.asic.gov.au.
FINRA is the largest non-governmental regulator for all securities firms doing business in the US. FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. FINRA touches virtually every aspect of the securities business – from registering and educating all industry participants to examining securities firms, writing and enforcing rules and the federal securities laws, informing and educating the investing public, providing trade reporting and other industry utilities, and administering the largest dispute resolution forum for investors and registered firms. For more information, please visit www.finra.org.
For further information contact:
Matthew Abbott
ASIC Media Unit
Telephone: 02 9911 2683
Mobile: 0402 543 128