The Development of preImplementation in Member Economies [Kingdom of Thailand] Since the MoC came into effect on 30 June 2016, the SEC Thailand has undertaken a focus group with relevant stakeholders to explain and build a common understanding of the final version of the ARFP Rules and has conducted a public hearing on Host Economy’s Law and Regulation relating to the ARFP to seek industry’s concerns and comments on fund offering to other host jurisdictions in which they have interest. At present, SEC Thailand is in the process of drafting and issuing relevant regulations to accommodate the crossborder offering of the ARFP funds through the ARFP framework which aims to commence in 2018. As the necessary works of preparing the regulations come under the purview of the SEC Thailand in conjunction with SEC Thailand’s experiences gained from implementing the rules and procedures for ASEAN Collective Investment Schemes (CIS) framework, the SEC Thailand is of the view that all relevant regulations will be well prepared to meet the target timeline. In the interim, SEC Thailand is also looking for a potential Thai asset management company that is keen to establish a pilot ARFP fund, as proposed by the JC, to have preliminary discussions in order to encourage, provide guidance and informal steers to build readiness prior to the launch of ARFP framework. [Republic of Korea] The Korean government is preparing a legal amendment for the implementation of the ARFP. The amendment aims to provide regulations broadly covering the management of an ARFP fund, including its registration, sales and operations. The relevant authority is currently working with Korea Financial Investment Association (KOFIA), asset management firms and legal and other experts to systemise the ARFP. The official procedure for legal amendment is planned for the second half of 2017, after the draft amendment has been prepared. While there is a rising interest in outbound business using the ARFP among large investment firms, specific movement is yet to be seen. It seems likely that there will be more substantial response after the regulatory scheme becomes more visible throughout the latter half of the year.
Progress of Tax Issues Australia will convene a meeting of the Tax Reference Working Group bringing together tax specialists from participating and prospective ARFP economies which will highlight the importance of tax neutrality between ARFP economies to the effective implementation of the ARFP. This Working Group will reinforce the open and consultative dialogue between ARFP economies and will provide a good opportunity to reiterate that the tax treatment of funds and investors in the ARFP should not be a barrier to greater market access. Domestically, Australia continues to take steps to improve the competitiveness of the Australian funds management industry, including through adjusting its tax settings. These include legislating the Investment Manager Regime, and announcing a tax and regulatory framework for a new CCIV. This new CCIV will provide prospective investors with access to a passive investment vehicle with flow through taxation, using vehicles commonly used overseas and which will be regulated as a financial services product under Australia’s financial services regime. Following the implementation of this new CCIV, the Australian Government will turn its attention to establishing a Limited Partnership Collective Investment Vehicle to further expand the suite of service offerings available to Australian fund managers.