Economies that wish to participate in the Asia Region Funds Passport must meet criteria in the Memorandum of Cooperation.
This is:
- The regulator for that economy must be a signatory to Appendix A of the International Organization of Securities Commissions Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (IOSCO MMOU)
- The jurisdiction must not be listed on the Financial Action Task Force list of high-risk and non-cooperative jurisdictions in relation to a relevant matter
- The jurisdiction must have been assessed as having fully or broadly implemented the relevant IOSCO Principles relating to enforcement, cooperation and collective investment schemes, unless this was for reasons irrelevant to the Asia Region Funds Passport or has taken steps towards implementing the recommendations or making other arrangements satisfactory to the Joint Committee
- On implementation of the Passport Arrangements, the regulatory framework of the economy will require someone to be responsible for performing the independent oversight functions in the Passport Rules and be sufficiently independent
- The regulatory framework of the economy is in the unanimous opinion of the Joint Committee, sufficiently equivalent to the regulatory framework of the economies of each Participant.