A delegation from the Korea Financial Investment Association has met with a number of Australian asset managers to discuss cross-border trade initiatives ahead of the introduction of the Asia Region Funds Passport.
The group of 20 South Korean asset management executives represented firms with approximately $450 billion in assets under management, according to AusTrade, and Minister for Trade, Tourism and Investment Steven Ciobo said the visit was a “testament to Australia’s leadership in financial services regulatory reform”.
“At present, only 3.4 per cent of the $2.7 trillion funds under management in Australia come from overseas sources, so there is enormous scope for the Australian financial services sector to grow its business by managing Asia’s wealth,” Mr Ciobo said.
Korea Financial Investment Association chair Hwang Young-Key said South Korean asset managers were “excited about future ventures into the Australian market” and were looking forward to developing relationships within the Australian financial services industry.
“We continue to deepen our knowledge of the Australian superannuation system and Australia’s approach to infrastructure fund investments,” he said.
AusTrade said the delegation was looking to understand the Australian regulatory environment, sign general partnerships with Australian fund managers and benchmark their system.
A number of Asian businesses see the new Asia Region Funds Passport as an opportunity and are “beginning to prepare their businesses to capitalise on the new market access” the passport will offer, said Financial Services Council chief executive Sally Loane.
“We would like to see the government build on the passport and progress regulator-to-regulator conversations regarding mutual recognition with Korea to implement the market access commitments made in the Korea-Australia Free Trade Agreement,” she said.