Aussie, Japanese investors welcome Asia Region Funds Passport
Australian and Japanese asset managers, distributors and regulators have expressed their support presented by the Asia Region Funds Passport, a framework allowing funds to be marketed to retail investors.
The passport would also have the potential to create a single retail investment management market in the Asia-Pacific region by ensuring a high level of investor protection, according to the investors’ summit that was held this week in Sydney.
The current signatories included Australia, Japan, New Zealand, South Korea and Thailand.
The Financial Services Council (FSC) chief executive, Sally Loane, said that from an Australian perspective the pilot of the programme, which was launched in April, was a success.
“After such a substantial investment from so many people over many years we want to see the passport get off to a great start next year,” she said.
The pilot program, which was supported by a range of fund managers and service providers, was aimed to test system architecture and help participants understand the operational and regulatory requirements of launching passport products from one jurisdiction to another.
Also, local asset managers involved in the pilot reported that the regulatory steps they needed to overcome to be able to distribute products through the scheme took less time to complete than anticipated, thanks in no small part to an easy-to-navigate and standardised online form, which was developed by the Australian Securities and Investment Commission (ASIC).
It was expected that the Asia Region Funds Passport may one day rival Europe’s 33-year old UCITS scheme in its breadth and value.
AUTHOR
Oksana Patron
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