The Parliamentary Secretary to the Treasurer, Steven Ciobo MP, will today join a business delegation to the Republic of Korea today to promote the Asia Region Funds Passport and the Australian financial services industry.
The Asia Region Funds Passport is a multilaterally agreed framework that will facilitate the cross-border issuing of funds across participating economies in the Asia region.
Currently, fund managers seeking to market funds across jurisdictions face barriers such as different regulatory and legal requirements and the need to be licensed in more than one jurisdiction.
Mr Ciobo said the passport will enable fund managers in passport member economies to export their products to other member economies under a streamlined process.
“This international ‘portability’ of passport funds will avoid the need for fund managers to manufacture and manage funds in each economy,” he said.
“By increasing cross-border trade of funds, the passport will offer more choice for investors, potentially lowers fees, help create a more competitive Asian industry and improve access to capital and improved regulatory standards across the region.”
During the visit to Seoul Mr Ciobo will also give a keynote speech at the Australia Korea Business Council dinner and meet with the Minister for Strategy and Finance.
Joining Mr Ciobo on the delegation will be representatives from the Financial Services Council, Colonial First State, Russell, Tyndall, La Trobe, APIR, Morningstar, Legg Mason, Vanguard, BT and K&L Gates.
“The Republic of Korea and Australia have one of the strongest and most complementary trading relationships in the Asia-Pacific region,” said Mr Ciobo.
“This trip will help further the relationship between our financial service’s industry and build support for the Asia Region Funds Passport,” he said.