The Japan-Australia Economic Partnership Agreement (JAEPA) provides Australian financial services providers with treatment broadly equivalent to the best Japan has agreed with any trading partner. This includes the following.
A level playing field
- Australian financial services providers are generally treated on par with Japanese or other foreign financial services providers.
Establishing a commercial presence
- JAEPA ensures Australian financial services providers can establish or acquire institutions in Japan and choose whether to establish as a branch or subsidiary, with only limited exceptions.
- JAEPA provides strong protections for Australian financial service providers operating through investments in Japan.
Cross-border supply of financial services
- Australian financial services providers can supply specific financial services on a cross-border basis, without the need to open a full commercial presence. This includes:
- Trade in wholesale securities transactions; and
- Investment advice and portfolio management services for investment funds.
- These commitments by Japan guarantee Australia’s access to one of the largest funds management markets in the world.
- JAEPA also commits Japan to allow Australian financial service providers to process financial data off-shore.
New financial services
- JAEPA commits Japan to allow Australian financial services providers to supply any new financial services that Japanese financial institutions are allowed to supply under Japanese laws and regulations.
Transparency and due process
- JAEPA includes strong commitments on enhanced transparency of financial services regulation in Japan and streamlining of licensing processes for financial service providers as well as financial products and services.
Sub-committee on financial services
- JAEPA creates a regular forum for Australia to raise issues of concern to Australian financial services providers and to review outcomes from the implementation of JAEPA.