Tuesday, August 26, 2008

US and Australia Sign Deal on Financial Markets Access

Does this mean that Australians will be allowed to buy unlisted US mutual funds? Or does it only cover exchange traded products? Currently new purchases of US mutual funds are only open to US residents and Australian IPOs are only open to Australian residents. US residents aren't allowed to trade foreign options including Australian options etc. US investments already have special status in the Australian foreign investment fund rules. US regulated investment companies (which includes mutual funds and exchange traded funds) are not subject to mark to market accounting, while such funds in other countries are. Will need to learn more on the implications of this deal.

P.S. 28th August

I just read in the AFR that the deal does not cover IPOs. Looks like it may lower costs for trading shares by allowing direct trading by US brokers on the ASX and vice versa rather than through intermediary local brokers.

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