INTERNATIONAL: Asia Region Funds Passport Memorandum of Cooperation

Thursday April 28 2016

On 28th April 2016, representatives from Australia, Japan, Korea and New Zealand signed the Asia Region Funds Passport’s Memorandum of Cooperation (MoC).

The MoC comes into effect on 30th 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 that any other eligible APEC economies are able to participate in the passport even after it comes into effect.

The Participants to the Memorandum of Cooperation share the goals or intend to take those actions consistent with their government’s goals of:

• providing investors in the economy of each of the Participants with a more diverse range of investment opportunities, enabling them to better manage their portfolio and meet their investment objectives;
• deepening the region’s capital markets to attract finance for economic growth in the region;
• facilitating the recycling of the region’s savings locally, growing the pool of funds available for investment in the region;
• strengthening the capacity, expertise and international competitiveness of financial markets in the region and the fund management industry, with a view to supporting sound economic development; and
• maintaining the legal and regulatory frameworks which promote investor protection, fair, efficient and transparent markets for financial services, supporting financial stability and providing high standards in the management and distribution of collective investment schemes; and
• have the mutual intention of implementing and participating in the Asia Region Funds Passport

Participating economies have up to 18 months from the 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.

Click on the link above for further details.