The Turnbull Government has introduced the Corporations Amendment (Asia Regions Funds Passport) Bill (Bill), delivering on the Government’s commitment to implement arrangements set out in the Passport’s Memorandum of Cooperation between signatories Australia, Japan, Korea, New Zealand and Thailand.
Following an extensive consultation process and pilot program, the Minister for Revenue and Financial Services, Kelly O’Dwyer announced the introduction of the Bill, and said it was an important step to furthering Australia’s economic integration with the Asia region.
“It will provide fund mangers with access to Asia’s expanding middle class and high net worth individuals, by allowing them to offer their products into the region without the duplicative approval process in each economy,” said O’Dwyer.
The Passport, which was set to benefit Australian investors though greater funds choice and increased market competition, would be complemented by a corporate collective investment vehicle (CCIV) to provide fund managers with a well-recognised, corporate structure vehicle to export to investors in Asia.
The Passport Joint Committee had recently launched a pilot program which allowed the industry to work with regulators to finalise the Passport framework. The next Joint Committee meeting, held in Sydney this April, would discuss the implementation of the Passport as well as take-up of the industry pilot scheme.
O’Dwyer has encouraged all businesses in the funds management industry to get involved with the pilot program as well as the upcoming industry day.