The Australian Parliament passed Investment Manager Regime (“IMR”) legislation. According to the Alternative Investment Management Association (“AIMA”), this will allow Australia to become a destination for foreign capital and fund trading operations.
The Bill to implement Element 3 of the IMR was introduced on May 27, 2015 and passed by the Senate on June 17, 2015. It now awaits Royal Assent.
General Manager of AIMA Australia Michael Gallagher explained that IMR is designed to ensure the fair treatment of all investment segments, including Australia’s “young and growing” hedge fund community. According to Mr. Gallagher, the new regime “levels the playing field with other hedge fund centers around the world” and “promises to transform the hedge fund sector in Australia.”
Lofchie Comment: At some point, U.S. regulators will realize that financial businesses, like all other businesses, require reasonable and sensible regulation. In the meantime, other jurisdictions will improve their competitive positions when they see advantage. By lowering regulatory barriers, Australia is seeking to become a more meaningful competitor. It is a logical step given Australia’s proximity to Asian investors and investments. Other countries, as well, would be happy to acquire many of the jobs involved in our financial investment activities.