ASIC has paved the way for greater overseas participation in Australia's financial services industry, with the provision of a guide to conducting business in the country. 

The guide, 'Doing financial services business in Australia' is targeted at offshore companies interested in setting up a financial services business in Australia, and provides information on Australia's statutory and licensing regime, as well as disclosure obligations.

The Investment and Financial Services Association (IFSA) has applauded the initiative.

"This is an important initiative from the regulator. We must tell the world how to do business in our country. ASIC has moved closer to making Australia's financial services a more attractive place to conduct business," IFSA chief executive Richard Gilbert said.

The guidance note follows a report released by ASIC earlier this month, which outlined the regulator's work in the past year in securing business arrangements with some of the world's major financial markets.

Chinese banks, insurance firms and funds management companies are now allowed to invest in the Australian financial services market under the Qualified Domestic Institutional Investor Scheme (QDII).

An agreement between ASIC and the Hong Kong Securities and Futures Exchange has paved the way for certain managed investments to be offered between the two countries.

A similar arrangement is also in place between Australia and New Zealand.