Australia’s funds management industry has gained access to a far larger market thanks to the passage of legislation which will open the gateway to the Asia region’s financial services market.
Australia has one of the world’s largest and most sophisticated funds management industries looking after $3 trillion of assets under management, but only around 4 per cent of these funds belong to people outside Australia.
“The Asia Region Funds Passport (Passport) is one of the Government’s initiatives to improve outcomes for consumers by providing them with greater choice of products and increased competition. It will also offer Australian fund managers an opportunity to gain economies of scale through selling to Asia’s growing middle class,” the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP said.
“Australian investors will also benefit through greater choice of funds and increased competition, which in turn will ensure access to more reasonably priced investment products, as well as boost Australia’s services economy.”
The Bill gives effect to the Passport’s Memorandum of Cooperation signed in 2016 by Australia, Japan, Korea, New Zealand and Thailand.
The passage of the Corporations Amendment (Asia Region Funds Passport) Bill is an important milestone in Australia’s implementation of the Asia Region Funds Passport and today, the Minister releases the associated regulations for consultation.
This consultation will enable the regulations to be made and commence together with the Passport legislation when it receives proclamation. This will be the final step in the Government’s delivery of its commitments set out in the Passport Memorandum of Co-operation.
Stakeholders are invited to lodge submissions online via the Treasury website. Submissions open today and conclude on 13 July 2018.