Aust. brokers face foreign equity limit

Press, 21 April 1984, Page 22

Aust. brokers face foreign equity limit

NZPA-AAP Canberra Individual foreign investment in Australian stockbroking firms will be restricted to 15 per cent equity, the Federal Treasurer, Mr Paul Keating has said. The Government has been considering how to apply its foreign investment policy to the Australian stockbroking industry because brokers are now allowed to take in outside Australian and foreign interests.

“The Government has decided that proposals by foreign interests to acquire shareholdings in Australian stockbroking business will be allowed to proceed only where they involve the acquisition of less than a substantial interest as defined in the Foreign takeovers Act,” Mr Keating said. The limit on foreign investment in individual firms would be 15 per cent and foreign portfolio shareholdings in each firm could

aggregate only up to 40 per cent.

“In reaching its decision the Government has noted the substantial increase in competition which will occur within the industry as a result of the removal of uniform brokerage and the entry of major Australian corporate interests,” Mr Keating said. These developments would result in big structural changes to the industry which played an important role in the Australian economy.