Financial Services Commission headquarters (Yonhap)
Cross-border transactions of public funds will kick off this month in South Korea and four other Asia-Pacific countries, to expand corporate and individual investors’ portfolios, according to the Financial Services Commission on Tuesday.
The scheme named Asia Region Funds Passport system enables cross-selling of public funds among five countries in the Asia-Pacific region -- South Korea, Japan, Australia, New Zealand and Thailand. The system will be implemented on May 27, as Korea’s Cabinet has approved revisions to the rules under the Capital Markets Act that stipulates some qualifications to take part in the new system.
Under the system, public funds registered here, which satisfy asset management requirements can be sold in ARFP member countries without having to go through a time-consuming approval process.
To register local funds in the ARFP system, an asset management firm is required to hold equity of over $1 million with invested assets worth over $500 million, and also have some executives with at least five years of supervisory experience in the finance sector, the FSC said.
“The introduction of the Asia Region Funds Passport will promote international competitiveness of the Asian financial markets,” said Koh Seung-beom, head of asset management department at the FSC.
“Local asset managers and retail investors will also benefit from investment opportunities abroad.”
By Choi Jae-hee (firstname.lastname@example.org