Mon, May 2, 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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n