INTRODUCTION OF THE ASIA REGION FUNDS PASSPORT BILL

The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, today introduced the Corporations Amendment (Asia Region Funds Passport) Bill.

“The Funds Passport is an important step to further Australia’s economic integration with the Asia region. It will provide Australian fund managers with access to Asia’s expanding middle class and high net worth individuals, by allowing them to offer their products into the region without having to go through duplicative approval processes in each economy,” Minister O’Dwyer said.

“The Passport will also benefit Australian investors through greater choice of funds. Increased market competition will lead to better consumer outcomes by ensuring access to more reasonably priced investment products.”

The Bill delivers on the Government’s commitment set out in the Passport’s Memorandum of Cooperation signed by Australia, Japan, Korea, New Zealand and Thailand, which took effect on 20 June 2016.

The Passport will be complemented by a new corporate collective investment vehicle regime, which will provide Australian fund managers with a well-recognised, corporate structure vehicle to export to investors in Asia.

The Passport Joint Committee, which consists of a representative of each of the signatory economies, recently launched a pilot program allowing industry to get in at the ground floor and work with regulators to finalise the Passport framework while developing viable and attractive products.

The next Joint Committee meeting will be held in Sydney in April. It will host representatives from the Passport signatories, as well as observers from other interested economies. There will also be an industry day on Friday 27 April.

Both events are expected to discuss progress on implementing the Passport as well as take-up of the industry pilot scheme.

“I encourage all businesses in the funds management industry to get involved in the pilot program as well as the industry day in Sydney,” Minister O’Dwyer concluded.