The passing by both Houses of the Bill to introduce the Asia Region Funds Passport (ARFP) is good news for the Australian financial services industry and will play a key role in facilitating growth in the region, says Chris Donohoe, CEO of APIR.
The Bill was passed by both Houses of Parliament yesterday (28 June 2018) and effectively amends the Corporations Act 2001 to allow the establishment and implementation of the ARFP.
"The ARFP is a positive initiative to facilitate cross-border distribution of funds between member jurisdictions," Mr Donohoe said.
"The passing of the Bill follows the launch of a pilot program at the start of this year to test the regulatory framework and to investigate operational requirements, and APIR has been a strong supporter and participant in the pilot".
"The ARFP is an opportunity for Australian fund managers to expand into Asian growth markets, and for Australian investors to access regional investment expertise".
"Further, when accompanied with the CCIV legislation that is currently in exposure draft for comment, it will bring Australian funds into alignment with globally accepted structures, such as UCITs".
Mr Donohoe said there is still some way to go before the ARFP can fully achieve its aims.
"A key element in the success of the ARFP will be to establish systems that allow the efficient and accurate delivery of information and data about funds and holdings across multiple jurisdictions. We believe that the adoption of a standardised regional identification regime will enable a scalable and cost-effective system in line with the domestic and regional expectations of the ARFP".
"APIR is looking forward to working with the industry as the ARFP/CCIV framework develops", he said.
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