Stewart Aldcroft of Citi says Ucits funds will not be allowed to participate in Hong Kong-China mutual recognition in the next few years, despite a Luxembourg lobbyist's argument to the contrary.
Fund passporting
Asia has three fund passport schemes in the pipeline - HK-China mutual recognition, Asean and ARFP - which promise to change the landscape of the region's funds industry.
One-third of mainland mutual fund houses and one-fifth of private asset managers plan foreign expansion, finds a new survey. It also points to their domestic ambitions.
There is a growing trend for fund houses to have locally-focused chief risk officers in Asia, given rising regulatory demands and greater business opportunities, say recruiters and Hong Kong's securities regulator.
The head of the offshore unit of China's CIFM has tipped the scheme to start in the second half of this year. He outlined plans for tapping it as well for building business elsewhere in Asia.
Philippines plans to implement ARFP; Mutual recognition a matter of timing, says Lam; Malaysia issues crowdfunding rules; Water Oasis ex-CEO admits to insider trading; Accountants settle US case.
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AsianInvestor readers offer their verdicts on the likely progress of Asia's three fund passporting schemes this year, as well as which funds will attract the lion's share of inflows.
She is widely praised for landmark cross-border initiatives and improving cooperation and transparency after exiting Hong Kong's securities regulator. But there was some criticism, too.
The Asia Region Funds Passport scheme has published detailed draft rules and operational arrangements after incorporating industry feedback from a consultation process.
A number of operational challenges on mutual recognition have been resolved following a closed-door meeting in February, but it is unlikely to be launched until after the new Shenzhen version of Stock Connect.
Regulation is shaping the agenda for fund passporting and not always for the best, according to industry experts at a forum. And with the rise of Asian digital fund platforms, passporting may become irrelevant.
The cross-border funds initiative will be launched on July 1, the SFC and CSRC said in a statement, laying the foundation for the two sides to jointly develop a fund regulatory standard.
Hong Kong's securities regulator sees mutual recognition as a way of increasing the number of funds domiciled in the city and raising its profile as a regional centre. It also aims to attract more investment to the city.
