S. Korea signs for fund cross-selling among Asian countries from 2018

SEOUL, April 28 (Yonhap) -- South Korea has agreed with three Asian-Pacific countries to start cross-border sales of fund products among the countries from 2018, the financial regulator said Thursday.

Four countries -- Korea, Japan, Australia and New Zealand -- have signed a memorandum of cooperation (MOC) to introduce the "Asia Region Funds Passport" system beginning 2018 to help regional investors diversify their portfolios, the Financial Services Commission (FSC) said in a statement.

"Thailand is expected to sign the MOC in May after an internal process for approval. The Philippines have yet to fulfill the requirements to become a member. Singapore is seeing if each member country's tax system is fair enough to join the initial member states," an FSC official said.

Some Asia-Pacific countries have been in talks to introduce the fund cross-selling system since September 2010 when Australia came up with the idea. In September 2013, Korea, Australia, New Zealand and Singapore signed a letter of intent to discuss the introduction of the system.

As the MOC takes effect on June 30, the countries that have already signed or will sign the agreement by late June have to complete preparations to launch the system by the end of 2017, the official said.

kyongae.choi@yna.co.kr
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