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.
Australia, Japan, Korea and New Zealand today signed the Asia Region Fund Passport’s memorandum of cooperation, which will come into effect on June 30.
Industry welcomes move by Singapore's financial regulatory authority to go public with tax criticism of ARFP passport scheme. They say it could force Australia and Korea into a corner.
Singapore’s regulatory authority has issued a clarification to AsianInvestor explaining why it chose not to sign the Statement of Understanding for the planned fund passport scheme.
Six nations signed a statement of understanding to join the Asia Region Funds Passport at the Apec finance ministers meeting in Cebu. However, Singapore was not among them.
The Japanese asset manager is looking at alternative ways of distributing its products in Asia such as through private banks, its Hong Kong head tells AsianInvestor. It also has plans to boost its headcount.
With passporting still in its infancy, funds distribution looks set to be transformed by 2030. The future could include full transportability of funds in Asia, underpinned either by passport schemes or digital delivery.