An Asia-Pacific Funds Passport: Creating a Truly Single Market for Cross-Border Managed Funds

Abstract

This paper discusses the concept of an Asia-Pacific region funds passport. It describes the current landscape of the funds industry within the Asia-Pacific region and considers how widely supported a funds passport regime is. It outlines the perceived advantages and disadvantages for New Zealand of participating in a funds passport regime and identifies the constraints standing in the way of the successful implementation of a funds passport, notably regulatory and tax constraints. It looks at the development of the UCITS regime, before considering the best approach for the Asia -Pacific region. The paper explores the idea of a central regulatory authority that would remove the regulatory and supervisory role from each individual country and instead entrust one body, with branches in every country, with this role.