Highlights from the ARFP Industry Summit.

By Jane MacNamara and Sara Dix

Financial regulators from eight nations, as well as industry representatives, gathered in Sydney on 27 April for an industry summit convened by the Financial Services Council (FSC) and the Australian Securities and Investment Commission (ASIC) to discuss the implementation of the Asia Region Funds Passport (ARFP).
 
Attendees heard from ASIC Chair James Shipton, FSC CEO Sally Loane, as well as industry and regulators involved in the ARFP development process, with Minister for Revenue and Financial Services, Kelly O’Dwyer, addressing attendees at a cocktail event the prior evening.
 
Regulatory cooperation and alignment was a key theme for the day, with participants keen to understand how the frameworks set up for the ARFP would work in practice. 
 
While roadblocks remain, including uncertainty around tax treatment of passport funds, attendees were enthusiastic about the opportunities presented by a consistent regional approach. The upcoming ARFP pilot will be a key opportunity to identify remaining challenges in the implementation and uptake of the Passport. 
 
The ARFP will provide an agreed framework to facilitate the cross border marketing of managed funds across participating economies in the Asia region.

 

The FSC has been a strong supporter of the ARFP throughout its development, and will continue to work closely with regulators and industry as implementation commences. We are excited that the Asia Region Funds Passport is set to commence this year and will 'go live’ when two economies have signalled they have completed implementation.  
 
Australia currently has legislation in Parliament and once this passes we will be able to get on with full implementation – this will be wholeheartedly welcomed by the FSC, our members in particular and the broader financial services industry.
 
Prior to implementation, the signatory nations will undertake a Pilot program. The Pilot aims to provide fund managers and service providers with a run through of regulatory and other systems before the Passport goes live.
 
The pilot will test the regulatory, tax and operational aspects of the Passport framework in home economies and host economies.
 
The FSC is very excited for the Pilot and we have had considerable interest in Australia and we are pleased to announce the following firms have confirmed their participation:

FSC members including fund managers Yarra Capital Management, Perpetual Corporate Trust, and Nikko Asset Management Australia; service providers including Morningstar, APIR, SWIFT and Calastone; and law firms including Norton Rose Fulbright, Allens, DLA Piper and King & Wood Mallesons have all committed to this initial stage.