ASIC seeks enhanced capital flows

Tony D'Aloisio

The Australian Securities and Investments Commission (ASIC) has announced that it will be working to remove barriers to capital flows into and out of Australia.

ASIC chairman Tony D’Aloisio said the report, entitled Enhancing Capital Flows into and out of Australia, details ASIC’s mutual recognition work with some of the world’s most significant markets and identifies objectives for the future.

D’Aloisio said the report identifies the importance of the freer flow of capital in providing wider investment opportunities for Australians and minimising the cost of capital for domestic businesses.

“The net amount of capital flowing into Australia increased by 200 per cent between 2001 and 2006, while Australian investment abroad increased from $7.3 billion in 1992 to $107 billion in 2006,” he said.

According to the report, ASIC has been working with the Treasury and using its connections with other regulators to assist the freer movement of capital.

The report focused particularly on ties with the United States following Prime Minister Kevin Rudd’s visit earlier this year and China following the visit by Treasurer Wayne Swan.

D’Aloisio said ASIC would focus over the next year on actively maximising recognition for foreign markets and regulatory regimes and maximising international supervision and enforcement cooperation.

“We will also look at ways to make it easier to establish a financial services business in Australia and work with other Australian agencies to assist local businesses that want to expand offshore. Our relationships with foreign regulators means we can assist those regulators in considering requests by Australian businesses to operate in their jurisdiction,” he said.