The FSI also seeks views on improvements to regulatory processes to consider international standards and foreign regulation, and asks that priority jurisdictions be identified. In our submission, we investigate the benefits of mutual and unilateral recognition, rationalising laws on directors’ duties and disclosure and recognising alternative foreign legal structures.
In particular, we propose to the Inquiry that there would be significant benefit in:
- approving additional territories for mutual recognition purposes, providing flexibility for adaptation;
- adopting broader unilateral recognition for regulated offering and disclosure documents from major securities laws jurisdictions (such as the UK, the US, Canada, Hong Kong and Singapore);
- removing process-focussed impediments to existing mutual recognition offers and class orders relating to foreign primary offers and disclosure;
- rationalising liability laws for directors with those for major securities law jurisdictions, and the division of responsibility between management and directors;
- rationalising disclosure laws for securities and listed financial products under one regime, rather than using the existing PDS regime for listed financial products (which is designed for different purposes); and
- adoption in Australia of business structures that are consistent with common foreign business structures (e.g. limited partnerships).