The Asia Region Funds Passport (the Passport) Joint Committee (JC) held its fourteenth meeting over two days on 30 November and 1 December 2023 in a hybrid format (both face-to-face and online). The meeting was chaired by the Australian Treasury Department and the Australian Securities and Investments Commission. It was attended by representatives from New Zealand (Deputy Chair), Japan, Republic of Korea, and Thailand.
The JC was pleased to welcome online observers from Singapore, Chinese Taipei, Hong Kong, and the Philippines.
Progress of the Passport
JC members provided an update on the progress of the Passport in their respective jurisdictions. One regulated collective investment scheme based in New Zealand remains the only approved Passport Fund.
Memorandum of Cooperation Amendments
JC members are continuing to domestically implement some previously agreed minor and technical amendments to the Memorandum of Cooperation (MoC). The proposed effective date for these amendments is now 30 June 2024.
Passport Review
The JC continued discussions on the review of the Passport framework. As part of this, JC members focused on the challenges to the framework that have been identified and considered potential actions that could be taken to encourage greater participation in the Passport arrangements.
The JC will finalise the report shortly and is aiming to publicly release the report in early 2024.
Regulatory Snapshot
Each JC member presented an update on the developments in their domestic regulatory framework relating to funds management.
Industry Day
The JC hosted an Industry Day on 1 December 2023 in a hybrid format. This session attracted more than 50 market participants including financial regulators, industry associations and fund distributors and operators in the Asia-Pacific region.
As part of this Industry Day, JC members and industry participants shared information on different aspects of the managed funds industry in each member jurisdiction, outlining trends and opportunities.
Future meetings
The next meeting of the JC is likely to be held virtually in the first half of 2024. The JC agreed to hand over the role of Chair to New Zealand and the role of Deputy Chair to Thailand next year.
Background
Australia, Japan, New Zealand, the Republic of Korea, and Thailand entered the MoC in June 2016, then established the JC to oversee the effective implementation and operation of the Passport.
Established through the APEC Finance Ministers’ Process, the Passport enables cross‑border offerings of managed funds to retail investors and intends to provide significant benefits to investors through more fund choices and easier offshore market access to fund operators, while maintaining effective legal and regulatory arrangements for investor protection. The Passport is also designed to bolster the capacity, expertise, and international competitiveness of financial markets and the fund management industry in the region.