Asian countries agree fund passporting rules

Five countries have agreed on a memorandum on the Asian passport scheme
By Paul Walsh
Representatives from Australia, Japan, Korea, New Zealand and Thailand have signed a memorandum of co-operation (MoC) on the Asian Region Funds Passport (ARFP).

The five economies will now have 18 months to implement the domestic arrangements agreed under the MoC.

The passport will be formally activated once any two economies complete the implementation process.

Global Custodian reported last September that finance ministers from the five countries had signed a statement of understanding committing their respective countries to the ARFP scheme.

The ARFP is designed as a vehicle for cross-border mutual funds, similar to UCITS, which facilitates cross border offerings of eligible collective investment schemes.

“The ARFP will provide the regulatory framework and architecture for mutual recognition of fund operators and investment funds between participating countries,” said Salley Loane, Financial Services Council CEO, in September 2015.

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