[ M A R K E T
Paribas Securities Services.
"The corporate tax rate is very low, it
can be used as a standalone or umbrella
structure where there are multiple
sub-funds, and allows managers to have
different investment strategies upfront.”
In addition, while Australia has the
largest fund management industry in the
Asia-Pacific region, the introduction of
the CCIV could prove to be a boon for
the country to become a cross-border
hub. Firstly, they have an internationally
recognised corporate structure limited by
R E V I E W
shares, and are designed to integrate with
the ARPF cross-border initiative. They
also complement existing regulatory
frameworks, potentially creating cost
efficiencies and reducing compliance
costs.
And they’re off
Australia, Hong Kong and Singapore has
certainly started an arms race, building
their funds markets with favourable
regulations and tax benefits to win favour
from both regional and international
“Between the OFC and VCC, there is a race between these
two to become an international centre and attract fund
managers.”
REMI TOUCHEBOEUF, HEAD OF APAC INVESTMENT AND FUND
SERVICES, BNP PARIBAS SECURITIES SERVICES
| [ F D U E N
P D
A R M T A M N E A N G T E | M E
H N
E D
T ]
asset managers.
While their aims and goals are similar,
the experience of each market - and the
reception from investment firms to these
structures - has not been the same.
"The levels of maturity between
these fund structures is quite different.
Australia’s CCIV is defined with the
perspective of the ARFP passporting
initiative but it has not produced a lot of
interest, there are still questions over tax
and there is a lack of incentives for fund
managers,” highlights Remi Toucheboeuf,
head of APAC investment and fund
services, BNP Paribas Securities Services.
“Between the OFC and VCC, there is
a race between these two to become an
international centre and attract fund
managers. They have encouraged fund
managers to use unit trusts but have so
far been quite complicated to run.”
Spring 2020
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