Wed, Aug 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Apec meeting approves progress on Asia Region Funds Passport

Tuesday, October 01, 2013

Finance Ministers of the Asia-Pacific Economic Cooperation (APEC) economies convened its 20th annual meeting in Nusa Dua, Bali, Indonesia, on 19 and 20 September 2013 under the Chairmanship of Dr. Muhamad Chatib Basri, Indonesia's Finance Minister. The meeting was attended by various delegates, including the President of the Asian Development Bank (ADB), the Managing Director of the World Bank Group, and the Deputy Managing Director of the International Monetary Fund (IMF).

In a statement the delegates said: "We note the progress in the development of Asia Region Funds Passport, including the formation and on-going development of a framework document that sets out its voluntary guiding principles and basic arrangements. We welcomed the signing of the Statement of Intent (SOI) in Nusa Dua, Bali, Indonesia, on 20 September 2013 by some economies that will potentially become members of a pilot group launching the Passport and publicly consult on the detailed rules for its implementation in accordance with the timeline set out in the SOI."

The pilot group includes Australia, New Zealand, Singapore and South Korea who will now set to work to create the Asia Region Funds Passport (ARFP), which it is hoped, will work like an Asian UCITS, allowing a level regulatory playing field and cross border sales for funds across the Asian region. The target is to have the passport up and running by 2016. A key driver for this development is the increasingly close  cross border financial relationship in funds between China and Hong Kong, which is expected to be added to by Taiwan, creating a Greater China alliance in funds, which might push fund groups from the rest of the region out.

Reported in Asia Pacific Intelligence's October 2012 edition, Angelyn Lim from Dechert explained Thailandand Singapore were leading the way in establishing a Ucits type fund passport across the Association of Southeast Asian nations (ASEAN).

In an interview with Asia Pacific Intelligence, Lim said that, at that time, Thailand and Singapore had stolen a march on the other countries interested in forming some sort of funds distribution union, and predicted that any such scheme would start as a pilot with other countries joining in.

At the time, Lim explained that certain Asia-Pacific countries have been pushing for a funds passport for some years. "Specifically Australia and New Zealand were very keen to have an Asian Ucits-type passport." One factor limiting the development has been the Australian tax regime which is not conducive to passporting arrangements with offshore funds. "There appears to be government support for a passporting arrangement and a more conducive domestic tax regime but it has not yet translated into practical action" she said.

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Altegris and Artivest partner on distribution for alternative funds suite[more]

    Bailey McCann, Opalesque New York: California-based investment firm Altegris has partnered with New York-based alternative investments platform Artivest on distribution for $1 billion in alternative funds. The partnership also launches Artivest's capabilities to offer alternative solutions to acc

  2. Investing - Buffett's Berkshire Hathaway will not increase its Oncor offer, Travel-tilting hedge funds are investing in airlines and online travel agencies[more]

    Buffett's Berkshire Hathaway will not increase its Oncor offer From Reuters.com: The energy unit of Warren Buffett's Berkshire Hathaway Inc said on Wednesday it will "stand firm" on its $9 billion offer to acquire 80 percent of Oncor Electric Delivery Company LLC and will not increase it

  3. Investing - David Tepper sells airline stocks, except Delta[more]

    From Forbes.com: Head of successful hedge fund Appaloosa Management, David Tepper shied away from airlines in the second quarter after upping his bets in the first three months of the year, according to his portfolio filing released this week. Tepper sold all of his position in United Continen

  4. Opalesque Exclusive: Update: Emerging long-biased hedge fund expands coverage[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Left Brain Capital Management, which manages Left Brain Capital Appreciation Fund

  5. Investing - Silchester International Investors buys 5% stake in bookie William Hill, Hedge funds split over Microsoft, Top hedge funds are bullish on these 3 mega-cap stocks, Hedge funds betting demise in small-cap stocks will get worse[more]

    Silchester International Investors buys 5% stake in bookie William Hill From Thisismoney.co.uk: A leading investment fund has put its cash behind under-pressure William Hill. Mayfair-based Silchester International Investors has bought 5 per cent of the bookmaker's stock - which has almos