Sat, May 30, 2015
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 ‚Äėthis is what we are proposing‚Äô 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. Opalesque Exclusive: New TMT hedge fund adopts the long-term approach[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Dr

  2. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  3. Investing - Nelson Peltzís Trian Fund Management reduces position in Legg Mason, Biotech investors up big amid bubble talk, Hedge funds increase exposure in healthcare[more]

    Nelson Peltzís Trian Fund Management reduces position in Legg Mason From Octafinance.com: Trian Fund Management has filled a SC 13D/A form regarding Legg Mason, Inc. Per Nelson Peltzís Trian Fund Managementís filing, the filler reported decreased stake in the company by -11.05% to 11,03

  4. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AMís latest Weekly Briefing, in t

  5. Billionaire hedge fund investor Odey says April 'bloody', has cut risk[more]

    From Reuters/Yahoo.com: Billionaire hedge fund manager Crispin Odey has cut risk and leverage following a stunning 19.3 percent loss in his 3.1 billion euros (2 billion pounds) Odey European Inc fund in April, a letter to investors seen by Reuters showed. Describing the month as "bloody", Odey

banner