One funds veteran says the Asia Region Funds Passport will not succeed, while another argues it could prove the most important of the region’s three cross-border product initiatives.
Ucits product is likely to be part of the mutual recognition scheme within two years, says the head of the Luxembourg funds association, despite a previous attempt to join being rejected by China.
Evidence from Europe on the effects of banning inducements for distributors offers authorities in Asia important evidence as they consider how best to protect investors.
Ucits products designed in Europe for global distribution often make regulators in Asia uncomfortable, Lieven Debruyne tells a conference in Luxembourg.
The Alfi chairman says Chinese investors remain inward-looking, while only Singapore in the other proposed passport schemes is a big Ucits market. Critical mass may be an issue.
Mainland asset managers are increasingly seeking to sell their capabilities to European institutions, although lack of brand recognition and market volatility are obstacles.