TOKYO -- Japanese financial institutions will be able to offer mutual funds in other Asian markets without undergoing often lengthy approval procedures under a proposed region-wide legal structure.
Slated to come into effect around the end of 2017, the framework will also give investors in Japan access to a greater lineup of mutual funds developed in other parts of Asia.
Japan's Financial Services Agency will sign a memorandum of understanding with Australia, New Zealand and South Korea on Thursday for what is called the Asia Region Funds Passport. Thailand is expected to sign on in May. The five members will activate the rules set forth in the memorandum by the end of June.
The FSA will then create a domestic scheme for recognizing the international framework over the next year and a half.
The Philippines, Singapore and Malaysia also are considering joining in.
Currently, international marketing of a fund developed in one country requires application and approval under the laws of the target market. Approval may take up to six months, according to the FSA.