US-Australia sign investor recognition agreement

CANBERRA Aug 26 (Reuters) - The United States and Australia signed an agreement to make it easier for investors in both countries to access each other's financial markets, the Australian government said on Tuesday.

The mutual recognition agreement, the first for the United States and the third for Australia, gives Australian retail investors direct access to U.S. markets through Australian brokers, with Australian regulatory protection.

"It will also make Australian markets more attractive and accessible to investment from the United States," Prime Minister Kevin Rudd, Treasurer Wayne Swan and Superannuation and Corporate Law Minister Nick Sherry said in a joint statement.

"The arrangement will also help reduce red tape and compliance costs as brokers and markets will primarily only have to comply with one substantive set of regulations - namely in their home jurisdiction."

Sherry, Australian Securities and Investments Commission chairman Tony D'Aloisio, and U.S. Securities and Exchange Commission chairman Christopher Cox signed the new agreement in Washington.

Australia already has mutual recognition arrangements with New Zealand, covering securities, and Hong Kong, covering the sale of retail funds.

(Reporting by James Grubel; Editing by Jason Neely)