It would make little sense for China to accept Ucits funds or to merge with other Asian passport schemes, says Sean Tuffy, head of regulatory intelligence at custody bank BBH.
EY has analysed the tax treatment of domestic funds versus foreign products that may be marketed under the Asia Region Funds Passport, to see what progress needs to be made.
Programmes including mutual recognition, Asean CIS, QFII, RQFII and Stock Connect appear to have fallen in favour, while ARFP, QDII, QDLP and QDIE have gained popularity.
Thailand signed up to the cross-border scheme this week, AsianInvestor can reveal, but the head of the local securities watchdog says take-up may be slow, at least initially.
Their surprise failure last week to sign up to the memorandum of cooperation is the result of temporary snags and internal processes, national regulators say.
Yesterday’s signing of the memorandum of cooperation for the Asia Region Funds Passport has sparked calls for jurisdictions to address the unequal tax treatment of cross-border funds.