No. 61 / 2016
Thursday 30 June 2016
Bangkok, June 30, 2016 – The SEC has become one of the first signatories to the Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passort (MoC), which prescribes the framework and conditions for public offerings of cross-border mutual funds under the Asia Region Funds Passport (ARFP).
Together with the other first participating economies – namely, the Republic of Korea, Japan, New Zealand and Australia – Thailand is making preparations for the launch of passport funds within 2017 as all five capital market regulators have 18 months to issue relevant regulations for their respective markets.
The ARFP is an initiative to facilitate cross-border offerings of mutual funds among APEC member economies. Essentially, a fund established in the home country and complying with the ARFP rules would be entitled for public offerings in the host country through licensed selling agents.
Similar to the ASEAN Collective Investment Schemes (ASEAN CIS) which has been launched by Malaysia, Singapore and Thailand since 2014, the ARFP would promote wider market linkage across key economies in Asia Pacific.
SEC Secretary-General Rapee Sucharitakul said: “We are very pleased to be one of the first participants in the ARFP initiative, a significant milestone in the promotion of cross-border CIS offerings since the ASEAN CIS in 2014. The ARFP would present more investment alternatives for Thai investors and expand markets for Thai asset management companies. This cross-border advancement is also a good indicator that our investment management industry is on par with international standards and recognized by larger economies in Asia Pacific.”
Mrs. Voravan Tarapoom, President of the Association of Investment Management Companies (AIMC), said: “The ARFP would open up new channels for cross-border offerings of local mutual funds to prospective investors in the region. In the meantime, Thai asset management companies must study relevant rules, enhance relationship with target economies to market their ARFP funds, and make other necessary preparations for the coming of foreign competition by developing new products that truly respond to Thai investors’ demands.”
1. The Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passport (MoC) identifies the framework, terms and conditions and common rules that would facilitate public offering of passpart funds under the agreed framework of the Asia Region Funds Passport (ARFP).
2. For more information on ARFP, please visit http://fundspassport.apec.org/
3. For more information on ASEAN CIS, please visit https://www.sec.or.th/TH/SECInfo/CIS/Pages/cis_main.aspx