Milestone Agreement Set To Increase Access To US Capital Markets

On 25 August 2008, the Australian Securities & Investments Commission ("ASIC") together with the Australian Minister for Superannuation and Corporate Law, executed a Mutual Recognition Arrangement ("MRA") with ASIC's US counterpart, the United States Securities and Exchange Commission ("SEC"). The MRA is expected to significantly reduce requirements for Australian entities wishing to offer securities to US investors. The agreement follows similar agreements that Australia has signed with New Zealand and Hong Kong authorities that are intended to establish closer links with their respective financial markets.

The purpose of the MRA is to expand the benefits to investors of broader access to US and Australian securities markets whilst maintaining respective domestic protections afforded to investors from those jurisdictions. To this end, ASIC and SEC have agreed to consider applications for