Philippines backs Asian Funds Passport to finance big-ticket projects

MANILA, Philippines - The Philippines is pushing for the development of the Asia Regional Funds Passport to make it easier for financial services professionals to market investment products across the region.

In a briefing late Friday, Securities and Exchange Commission commissioner Ephyro Amatong said this passport initiative could “create a bigger pool of funds that can be tapped for investment to drive growth within the region.”

The Asia Regional Funds Passport is an Asia Pacific Economic Cooperation initiative, which is expected to be tackled during the Finance Ministerial meetings in Cebu scheduled on Sept. 9 to 11.

Finance ministers of the 21 Asia-Pacific Economic Cooperation economies are set to launch the Cebu Action Plan, a roadmap to the Asia-Pacific region’s inclusiveness and resiliency.

The creation of the Asia Regional Funds Passport is also seen to boost job creation in the region. It is on track for a launch in 2016.

Amatong said the initiative has the support of Australia, Korea, New Zealand and Singapore.

 “The initiative aims to cut down on incompatible or overlapping regulation that may hinder the marketing of managed funds between participating economies,” Apec said in a separate statement on the passport.

“Once the passport is fully up and running, it could save the region’s investors $20 billion annually in fund management costs, offer higher investment returns at the same or lower degree of risk, and encourage the establishment of locally domiciled funds which could create 170,000 jobs in Apec economies within five years,” Apec said.

Officials and regulators from participating Apec members have been holding meetings for the proposed initiative.

They have submitted feedback during a second round public consultation period from the end of February to mid-April this year as well as possible amendments to a draft multilateral memorandum of understanding that outlines the rules and arrangements of the initiative.

On the other hand, Apec economies that are not ready to join the passport in 2016 are given the opportunity to develop their capacity in order to meet the passport regulatory and membership requirements in the future, Amatong said.

Apart from the passport, the Philippines will also push for the development of infrastructure in the region, Amatong said.

In addition, Apec will also be making a case for the globalization of trade, which in turn, promotes efficient production of goods, gives consumers more choices, lowers prices by eliminating tariff, and provides access to new technology.