Govt passes Asia Region Funds Passport legislation
The local funds management industry has gained access to a far larger market thanks to the passage of the Asia Region Funds Passport legislation, which will open the gateway to the Asia region’s financial services market, according to the Federal Government.
Federal Revenue and Financial Services Minister, Kelly O’Dwyer said the Passport will provide Australian fund managers with an opportunity to gain economies of scale through selling to Asia’s growing middle class.
The Minister pointed out that while Australia has one of the world’s largest and most sophisticated funds management industries looking after $3 trillion of assets under management, only around 4 per cent of these funds belong to people outside Australia.
“Australian investors will also benefit through greater choice of funds and increased competition, which in turn will ensure access to more reasonably priced investment products, as well as boost Australia’s services economy,” she said.
The Bill gives effect to the Passport’s Memorandum of Cooperation signed in 2016 by Australia, Japan, Korea, New Zealand and Thailand, O’Dwyer said.
Given that the passage of the Corporations Amendment (Asia Region Funds Passport) Bill was an important milestone in Australia’s implementation of the Asia Region Funds Passport, the Government has also released the associated regulations for consultation.
This consultation will enable the regulations to be made and commence together with the Passport legislation when it receives proclamation, O’Dwyer said. This will be the final step in the Government’s delivery of its commitments set out in the Passport Memorandum of Co-operation.
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