Sun, Aug 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Regulatory Update: Angelyn Lim ASEAN Ucits type passports take two steps closer to coming into existence

Monday, October 29, 2012

Angelyn Lim

Angelyn Lim of Dechert’s Hong Kong office has reported on developments in establishing an ASEAN funds passport, and most recently highlighted the news that Thailand and Singapore are 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, in a way, Thailand and Singapore have stolen a march on the other countries interested in forming some sort of funds distribution union. "The fact that the two regulators have actually announced that ‘this is what we are proposing’ implies there can probably be no turning back now" she said. "It will likely start as a pilot scheme, with these two countries and then possibly expand to include others, perhaps Malaysia and/or Indonesia."

In background to the development, 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."

The ASEAN trading bloc is the only one that exists in Asia and has expanded from its original five countries to 10 and now also includes Myanmar. "In November 2007, ASEAN member states adopted the ASEAN Economic Community Blueprint 2015, which outlines the goals and timelines of implementing the ASEAN Economic Community (AEC) by 2015.  The AEC is anticipated to establish ASEAN as a single market and production base which will be similar to the EU."

While talks continue, much remains unclear. Lim thinks that an ASEAN funds passport could be appealing to offshore funds as well, particularly if the pre-requisite to utilising the passport is only for the fund to be authorized or registered for retail distribution in one ASEAN jurisdiction with the new passport. "But if funds have to be domiciled in an ASEAN jurisdiction too, then that would be a different story" she says. "The way things are going now it makes sense for Asia to have its own version of Ucits but the stumbling block is that you have 10 different countries in quite different stages of development and regulatory and investment characteristics which have a huge differential, as opposed to the more homogenous Ucits environment."

 
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new