14 September 2015
Japan Joins Asia Region Funds Passport
Practice Group:
Asia Pacific Investment Management Alert
Investment
Management, Hedge
Funds and
Alternative
Investments
By Elizabeth Gray, Lisa Lautier and Edward Vassie
Announcement
On Friday 11 September 2015, Finance Ministers from Australia, Japan, Korea, New
Zealand, the Philippines and Thailand signed the Passport Statement of Understanding,
signaling their commitment to join the Asia Region Funds Passport (Passport) that is due
to commence in 2016.
It is the first time that Japan has committed to progressing the Passport. This is a crucial
win for the proponents of the Passport and could lead to significant opportunities for the
funds management industry across the Asia Pacific region.
Asia Region Funds Passport
The Passport will establish a multilateral framework designed to facilitate the marketing
and distribution of collective investment schemes cross-border within the Asia Pacific
region.
The signing of the Passport Statement of Understanding by the Finance Ministers follows
the release of the draft Passport rules earlier this year.
Members of the Passport Working Group, their respective Governments and the funds
management industries within those countries are now working on aspects of the region's
tax regimes to ensure the international competitiveness of the Passport. Importantly, the
Passport Working Group continues to include Singapore. While Singapore did not sign
the Passport Statement of Understanding, it has been represented at Passport
negotiations since the beginning and continues as an active participant in the Passport
discussions.
Once implemented, the Passport will promote economic growth in the Asia Pacific region
and provide investors in each of the participating economies (all of which are
characterised by one or more of a growing middle class, aging population in need of
retirement savings products and a growing investment pool) with a more diverse range of
investment opportunities.
Authors:
Elizabeth Gray
Lisa Lautier
Edward Vassie
Sydney
liz.gray@klgates.com
+61.2.9513.2403
Sydney
lisa.lautier@klgates.com
+61.2.9515.2594
Sydney
edward.vassie@klgates.com
+61.2.9513.2328
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