ASIC and FINRA Sign Cooperation Agreement
20 June 2010 Washington
Image: Shutterstock
The Australian Securities and Investments Commission (ASIC) and the Financial Industry Regulatory Authority (FINRA) entered into a Memorandum of Understanding (MOU) on the 18th June 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," Mr D'Aloisio said. "This MOU will enhance the supervision of financial markets in both Australia and the U.S. This is particularly important in light of ASIC's new market supervision responsibilities."
Mr Ketchum added, "Today's agreement is a true indication of the global reach of the capital markets. 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 U.S. and Australia."
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," Mr D'Aloisio said. "This MOU will enhance the supervision of financial markets in both Australia and the U.S. This is particularly important in light of ASIC's new market supervision responsibilities."
Mr Ketchum added, "Today's agreement is a true indication of the global reach of the capital markets. 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 U.S. and Australia."
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