The Australian Securities and Investments Commission and the U.S. Financial Industry Regulatory Authority have announced an agreement to enhance co-operation between the regulators.

FINRA and the ASIC have entered into a Memorandum of Understanding that establishes a framework for mutual assistance and the exchange of information. Among other things, the agreement will help the regulators to investigate possible instances of cross-border market abuse, exchange information on firms under the supervision of both regulators, and allow more robust collaboration on approaches to risk-based supervision of firms.

“Because the U.S. and Australian financial markets are highly globalized, it is crucial to both agencies that we have effective co-operation agreements with key partner jurisdictions,” said ASIC chairman, Tony D’Aloisio. “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.”

FINRA’s chairman and CEO, Richard 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.”

IE