The Asia Region Funds Passport (the Passport) Joint Committee (JC) held its sixteenth meeting over two days in November 2024 in a hybrid format (both face-to-face with the committee members and online for observers). It was a constructive and enthusiastic meeting that included a challenge to action from one of the original champions of the initiative, New Zealand Financial Markets Authority (FMA) Chair Craig Stobo. The JC was encouraged by the commitment to exploring ways to raise the passport’s profile and reduce barriers for fund managers.
A key session focused on the European UCITS (Undertakings for Collective Investment in Transferable Securities) framework, providing valuable insights into the challenges and opportunities of a cross-border fund scheme. A central takeaway was the principle of “start small, grow big”. The Committee agreed to maintain an ongoing dialogue on the UCITS experience as it works to model the ARFP’s future success.
The meeting was chaired by the FMA. Members were welcomed with a traditional New Zealand Māori welcome which was warmly received. It was attended by representatives from Australia, Japan, Republic of Korea and Deputy Chair Thailand. The JC was pleased to also welcome online observers India as well as representatives from the local investment management industry across the JC members’ jurisdictions.
Progress of the Passport
JC members provided an update on the progress of the Passport in their respective jurisdictions. Korea and Japan reported interest from one investment fund manager in each jurisdiction to set up a passport in their respective jurisdictions, though they noted further work was required from both managers.
Regulatory snapshot
Each JC member presented an update on the developments in their domestic regulatory framework relating to funds management.
Overcoming Challenges to ARFP Implementation
Members discussed ways to ways to improve visibility of the Passport and potential ways to remove barriers to each jurisdiction. They reviewed the implementation of the UCITS in Europe, to understand its potential and risks.
Opportunities in each jurisdiction
Each jurisdiction showcased the opportunities and focus areas in their respective financial services sector. Jurisdictions reported seeing growth in the Fintech sector, ESG and ETFs.
Other matters
The Chair actioned a plan to update guidance on the ARFP website. JC members agreed several improvements could be made to the website to increase visibility and outreach of ARFP.
Closing remarks
The Chair touched on the challenges that the JC faces and building on what has been discussed. The JC looks forward to continuing the development between Japan and the Republic of Korea.
A call was made for improvement on developing leadership and making a plan to turn ARFP into a UCITS success story.
Next meeting
The JC has agreed to hand over the Chair to Thailand and the role of Deputy Chair to the Republic of Korea. Following the 17th JC on the 20 June 2025, the 18th JC will be held in a one-day online format on 28 November 2025.
Background
Australia, Japan, New Zealand, the Republic of Korea, and Thailand entered into the Memorandum of Cooperation in June 2016, then established the JC to oversee the effective implementation and operation of the Passport.
Established through the APEC (Asia-Pacific Economic Cooperation) 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.