The “Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passport”, has now been signed by Australia, New Zealand, South Korea and Japan. Countries yet to sign include Thailand,Singapore and the Philippines. The “MOC” has been called “the most far-reaching multilateral regulatory framework in the Asia-Pacific region allowing for the cross-border marketing and distribution of collective investment schemes.”
Why is this so important? It all has to do with financial integration regarding both debt and equity surrounding the Asia-Pacific region. Estimates expect that over 170,000 jobs may be created over the next 5 years. What does this have to do with alternative finance? According to Fintech Law Blog;
“FinTech businesses which utilise managed funds, such as marketplace lenders and some robo-advisers, and are regulated in a participating country may be able to use the Passport to offer managed funds in other participating countries without needing to go through local licensing and registration processes.”
It all kicks in on June 30, 2016.
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