What could be bigger than the China-Hong Kong mutual fund recognition program? Asia Pacific.
Finance officials from six countries in the Asia Pacific are working together to streamline the process that will allow financial services companies in the region to sell investment product including mutual funds to each other, according to the South China Morning Post (paywall)
The scheme — Asia Region Fund Passport — is expected to be piloted next year among APEC member-countries who participated in the program, the report said. Once it’s fully implemented, the program is expected to allow investors in the region to save as much as $20 billion a year in fund management fees. It will also help boost returns and reduce the degree of risks to investors, SCMP said.
The six APEC members that are taking the lead for the development of the scheme are Australia, New Zealand, Philippines, Singapore, South Korea and Thailand. Six other members namely Hong Kong, Indonesia, Japan, Malaysia, Taipei and Vietnam have joined discussions on the rules and other arrangements necessary for the program, the report said.
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