Fund managers and investors will have far greater opportunities across Asia if Australia's proposed Asia Region Funds Management Passport (ARFMP), to be discussed at the APEC Policy Dialog in Kuala Lumpur this week, goes ahead.
The Asia Region Funds Management Passport will establish a multilateral framework allowing the cross border marketing of funds across participating countries. Fully implemented, the Passport will allow fund managers based in Passport countries to sell their investment management products in all Passport participating countries, without needing to meet different regulatory requirements.
The Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon. Bill Shorten MP said "I welcome the regional interest in the Passport. Its development will provide great opportunities for the Asian funds management industry in the long-term and help cement Australia's place as a financial services hub."
Fund managers in participating countries will benefit by being able to manage a larger regional pool of funds from their home base. Investors in Passport countries will benefit by having a greater range of investment products to choose from with the protection of a robust licensing regime.
"This is a long-term policy measure the Australian Government has committed to pursuing. It illustrates our commitment to sensible reforms to develop Australia as a financial services centre. Unfortunately for local workers in this industry and Australian investors, the Coalition opposes our broader package of reforms in this area," Mr Shorten said.
The Asia Passport proposal was originally put forward by the Government's Australian Financial Centre Forum paper, Australia as a Financial Centre: Building on our Strengths. It is strongly supported by the Australian funds management industry.
An Australian business and government delegation will present the proposal to a group of interested economies, including Singapore, Hong Kong, Korea and Japan, with the aim of securing their interest and support for establishing a pilot ARFMP scheme in the Asian region under the auspices of APEC in 2011.
If accepted, the proposal will be put forward for consideration by the APEC Finance Ministers Meeting in Japan next month.
25 October 2010