On September 20 in Bali, Indonesia, the Finance Ministers of Singapore, Australia, South Korea and New Zealand signed a statement for the joint development of the Asia Region Funds Passport (ARFP), which will facilitate the cross-border offering of funds in Asia.
When implemented, the ARFP will offer fund managers operating in a passport economy a direct and efficient route to distribute their funds in other passport economies. Investors in the region will also benefit from having access to a broader range of quality investment products.
As an inclusive regional initiative, it is hoped that the ARFP will strengthen the region's fund management capability, deepen capital markets, and provide finance for sustainable economic growth. In the longer term, it could also facilitate funds from the Asian region being marketed in Europe by way of an Asian/European mutual recognition agreement.
The Ministers also endorsed a framework document which sets out the high level principles, basic arrangements and indicative timeline that will guide the development of the ARFP. Each of the four economies will conduct a joint public consultation in 2014 on the detailed rules and arrangements needed to implement the ARFP.
Following the consultation, economies which decide to participate in the passport will work together towards the launch of the ARFP in 2016. Other countries that have expressed an interest in the project include Hong Kong, Taiwan, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
Tharman Shanmugaratnam, Deputy Prime Minister, Minister for Finance, and Chairman of the Monetary Authority of Singapore, said: "The ARFP will benefit investors and fund managers, and ultimately help in the much-needed deepening of regional capital markets."
TAGS: Finance | investment | capital markets | investment funds | Australia | Philippines | Singapore | Taiwan | Thailand | Hong Kong | Indonesia | Korea, South | Malaysia | New Zealand | Japan | Vietnam | Expats | Invest
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