Progress made on Asia Region Funds Passport

  • Craig Foss
  • Jonathan Coleman
Commerce Finance

Associate Minister of Finance Jonathan Coleman and Commerce Minister Craig Foss welcome the signing of the Asia Region Funds Passport Statement of Intent at the APEC Finance Ministers meeting.

“The Asia Region Funds Passport is an excellent initiative that will provide real benefits to New Zealand and other countries in the region,” says Dr Coleman.

“It will create a commonly agreed regulatory framework for selling managed funds across borders in our region. Currently, there are significant regulatory barriers which limit offerings and opportunities for investors.”

The Funds Passport reflects the Government’s commitment under the Business Growth Agenda to improve the performance of New Zealand’s capital markets and help business growth.

“It will reduce barriers and allow a managed fund based in one jurisdiction to be more easily offered to investors in other participating jurisdictions,” says Mr Foss.

“It will make it simpler to sell New Zealand managed funds to other countries in the region, and it will help to link the growing pool of investors to investment opportunities across our countries.

“Funds offered under the initiative will have to comply with strict rules, such as being highly diversified and investing in more simple financial products. This is designed to ensure a strong degree of investor protection.”

Dr Coleman signed the Statement of Intent for New Zealand alongside other signatories Australia, Singapore and Korea. The annual APEC Finance Ministers took place in Bali on Friday 20 September 2013.

The participating economies agreed to consult their industries on detailed rules for the passport in 2014.