The trend of passporting funds between like-minded jurisdictions continues in Asia.

New Zealand's principal financial regualtor announced late last week that it has put the Asia Region Funds Passport into operation, enabling investors in the country to do business more easily with Australia, Japan and Thailand.

The ARFP, signed by New Zealand, Australia, Japan, Thailand and South Korea in 2016, facilitates the offering of liquid and well diversified managed funds among the signatory economies.

The the passporting programme in some ways mirrors the pan-European investment funds structure known as UCITS, under which funds can be bought and sold throughout the European Union without having to be separately registered in each of the 28 member states. There have been a number of moves to create a similar kind of system in Asia with its fast-growing investment sector.

Last Friday, New Zealand's Financial Markets Authority officially announced that New Zealand had completed preparations for the agreement.

The authority said that local schemes can now apply to be registered as a passport fund and foreign passport funds can apply for permission to offer their funds in New Zealand.

Fund managers from New Zealand, Australia, Japan, and Thailand can offer eligible products to investors in each other’s economies.

Japan, Thailand and Australia launched the passport in February. South Korea continues to make progress with legal and regulatory requirements.

The Ministry of Business, Innovation and Employment (MBIE), and Companies Office - with input from various industry participants - have introduced changes to the country’s Disclose register and developed new forms, systems, processes and guidance. New regulations have also been developed under the Financial Markets Conduct Act.

Fund managers wanting to offer passport funds in New Zealand – and New Zealand fund managers wanting to offer funds offshore – need to apply to the FMA for approval.