First 'Investment Passport' under ARFP Granted to NZ Fund Manager Smartshares Limited

The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko has approved Smartshares Limited as a passport fund under the Asia Region Funds Passport (ARFP).

ARFP is a multilateral agreement between New Zealand, Australia, Japan, Thailand and The Republic of Korea that allows investors and managed funds from those countries to do business more easily. The initiative facilitates the offering of liquid and well-diversified managed funds among the signatory economies. Smartshares is the first fund manager to be approved under the ARFP.

NZX-owned Smartshares will now be able to offer its approved fund for distribution in Australia, Thailand, Japan, or Korea according to the rules specified in the Memorandum of Cooperation (MoC).

James Greig, FMA Director of Supervision, said: "The ARFP is an internationally recognised system and it's encouraging to see a New Zealand investment firm to be the first to be granted a passport.

"The Financial Markets Conduct Act balances innovation with robust regulation and has allowed New Zealand to participate in the agreement, which opens new markets for New Zealand's fund managers and should broaden investment options available to New Zealanders," Mr Greig said.