Asia region funds passport
The Asia region funds passport allows a managed fund based in one country to be offered more easily to investors in other participating countries.
The participating countries are New Zealand, Australia, Japan, Korea and Thailand. They signed a Memorandum of Understanding in 2016 to set up and implement the funds passport.
Europe has a similar passport initiative known as Undertakings for Collective Investment in Transferable Securities or UCITS and it has been successful.
Access to more investment opportunities
New Zealand and the Asia region will both benefit from a managed funds passport.
The passport is intended to provide New Zealanders and investors in the Asia region with access to a greater range of investment opportunities.
It may also open up a new channel for international investment flows between New Zealand and participating economies in the Asia region. This, in turn, would deepen the region’s capital markets and support the development and competitiveness of the region’s fund management industry.
Implementation in New Zealand
In New Zealand, Financial Markets Conduct amendment regulations were made in May 2019 to implement the funds passport.