2023 Review: AIMA in Asia Pacific

Rooted in the guiding principle "small in size, big on impact," the team in AIMA APAC prioritises efficiency and effectiveness in all its regulatory efforts, outreach, events and support for members.

AIMA has actively championed the interest of its members by engaging extensively with regional regulators and policymakers. This collaborative effort has resulted in more than 10 regulatory submissions, conducted nearly 70 calls, roundtable discussions and meetings, and the delivery of two industry papers.

The release of the Action Plan for Alternatives in Hong Kong follows the unveiling of the Hong Kong Vision Paper in 2022 (see page 17). It documents a comprehensive roadmap with steps necessary to fortify Hong Kong's position as Asia's hub for alternative assets, emphasising enhancements in areas such as tax and regulatory environment. Simultaneously, AIMA partnered with members in Japan to elevate its status as an international financial centre. The release of the paper Elevate Japan's Stature as a Global Financial Centre serves as a strategic roadmap, crafted to catapult Japan back into the limelight as a global financial powerhouse and to empower the Government of Japan to secure its enduring economic vitality.

Recognising the importance of diversity, equity, and inclusion (DE&I) in the alternative investment industry, AIMA established the AIMA APAC DE&I Working Group. This initiative provides practical resources, advice, role models and case studies to support member firms in fostering a diverse and inclusive culture by offering practical resources, advice, role models, and case studies.

APAC continues its close work with regulatory bodies with consistent submissions to push the industry ahead. Some of these undertakings include a submission to the Australian Treasury’s Exposure Draft Legislation and Explanatory Memorandum regarding regulatory relief for Foreign Financial Service Providers, a response to MAS on tax incentive schemes in Singapore, consultation paper to SEBI’s proposal on mandating additional disclosures from FPIs, a response to the Hong Kong SFC’s proposed circular on assessment and selection of ESG providers and a proposal to FSA on Japan fiscal tax reform 2024.

Other notable advocacy work carried out by the AIMA APAC team over the past year included a closed-door session with Ms Satsuki Katayama, Chairperson, Research Commission on the Finance and Banking Systems of the Liberal Democratic Party for members in Singapore, and various one-on-one meetings with FSDC and MAS organised by AIMA for members across APAC.

Tax

We have argued for measures to benefit asset management in Hong Kong, Singapore, and Japan. In Hong Kong, we would like to achieve reform of the carried interest tax concession which has met limited success due to its flawed design, and the longstanding obstacles to the management of credit funds. Singapore is reviewing the operation of its fund tax regimes which we believe can be improved.

Looking Ahead

Next year, the busy pipeline of new regulatory proposals globally is expected to continue and that will require close attention by AIMA to best assist our members in navigating these new challenges.

We are ready to meet these hurdles and will be with you each step of the way.