The Concept of Mutual Recognition
The fundamental objective of a mutual recognition regime is to confer benefits upon businesses and individuals by reducing barriers to cross-border commercial activity. Mutual recognition achieves this by enabling entities from a participating jurisdiction to operate in other participating jurisdictions on the basis of compliance with a single substantive regulatory framework.
The main advantages of such arrangements are that they overcome inconsistent requirements between national regulatory frameworks which pursue the same policy objectives in different ways (for example, different requirements relating to the structure of collective investment vehicles), and reduce compliance costs associated with the need to comply with the differing regulatory requirements of different jurisdictions (for example, the rules relating to the format and content of disclosure documents).
In the trans-Tasman context, mutual recognition contributes to the broader goal of achieving a single market for goods, services and capital. The Trans-Tasman Mutual Recognition Arrangement ("TTMRA") provides mutual recognition for the supply of goods and occupational registration. The mutual recognition proposal set out in this paper is intended to complement the TTMRA, in the context of a trans-Tasman securities market.
Back to Top