Minister for Small Business and Assistant Treasurer, the Hon Kelly O’Dwyer MP today signed the Asia Region Funds Passport’s Memorandum of Co-operation (MoC) with Japan, Korea and New Zealand.
The Passport is an international initiative that facilitates the crossborder offering of eligible collective investment schemes while ensuring investor protection in economies participating in the Passport. The MoC sets out the internationally agreed rules and cooperation mechanisms of the Passport.
"The Passport will create a single market for managed funds encompassing economies across the region," Minister O’Dwyer said.
"The Passport will better enable Australian fund managers to provide financial services to Asia’s growing middle class, boosting Australian exports, while giving consumers greater investment choices.
Signing of the MoC is an outcome of over-six-years international negotiation on the Passport arrangements. Australia, Japan, Korea, New Zealand, the Philippines, Singapore and Thailand have contributed expertise to developing the framework in the Working Group.
"I thank those industry representatives who contributed greatly to ensuring the arrangements are commercially attractive and accommodate the latest innovations in funds management.
"The Government is committed to implementing the arrangements as a matter of priority so that Australian industry and consumers can begin to benefit from this important Australia-led initiative," Minister O’Dwyer said.
The MoC comes into effect on 30 June 2016 and any other eligible economy that signs the MoC before then will be an original participant in the Passport. The MoC also ensures any other eligible APEC economies are able to participate in the Passport even after it comes into effect.
The MoC is available on the Asia Region Funds Passport page of the APEC website. Participating economies have up to 18 months from 30 June 2016 to implement domestic arrangements. Activation of the Passport will occur as soon as any two participating economies implement the arrangements under the MoC.