FSC welcomes Asia Region Funds Passport signing
The trade of managed funds within Asian economies was set to become a lot easier after the Federal Government's move to sign the Asia Region Funds Passport, the Financial Services Council (FSC) said.
FSC chief executive, Sally Loane, said the passport offered a regulatory framework for "mutual recognition of fund operators and investment funds between participating countries".
She was also pleased Japan, which has $4 trillion of funds under management, was included in the Asian Region Funds Passport Statement of Understanding, which was signed at the APEC Finance Minister's meeting in the Philippines.
"The passport will offer investment managers across the region with a viable alternative to the European Union's regime, which has a strong foothold in Asia," she said.
"It will mean the economic benefits of cross-border financial services will remain within the Asian region, instead of Asian savings benefiting Europe."
Finance ministers from Australia, Japan, Korea, New Zealand, the Philippines and Thailand signed the statement of understanding, which is set to decrease red tape for managed funds, while giving fund managers the chance to compete for a bigger slice of managing Asia's savings.
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