0. 2nd ASEAN Insurance Summit 2016
Asia Pacific Financial Forum (APFF)
Key issues in expanding the Asia Pacific region’s long term investor base
Makoto Okubo, Nippon Life Insurance Company
Sherpa, APFF Insurance and Retirement Income Work Stream
Yogyakarta, Indonesia, 23 November 2016

1. APFF: Public-private collaboration in developing financial systems
APFF (Asia Pacific Financial Forum) 1
APFF: Public-private collaboration in developing financial systems
Importance of regional public-private collaboration:
Legal and regulatory frameworks
Financial market infrastructure
Financial market integration
APFF: informal, inclusive and advisory public-private platform for collaboration in the development of common strategies for developing sound, efficient and integrated Asia-Pacific financial markets
Governments and regulatory bodies
Private sector
International organizations (IFIs, SSBs, others)

2. Finance Ministers’ Process (FMP)
The APFF within the APEC Process 2
Finance Ministers’ Process (FMP)
21 APEC Finance Ministries
Advisory Functions: ADB, IMF, OECD, WBG, ABAC
Finance Ministers
Heads of Delegation of International Organizations and ABAC
Deputy Finance Ministers/Deputy CB Governors
Representatives of International Organizations and ABAC
Senior Finance Officials
FMP Policy Initiatives
Managed by ABAC (APEC Business Advisory Council)
APEC Finance and Development Institute
Financial Regulators Training Initiative
APEC Financial Institutions Dealing with SMEs
Asia-Pacific Forum on Financial Inclusion
Asia-Pacific Financial Forum
(APFF)
Asia-Pacific Infrastructure Partnership (APIP)
APEC PPP Experts Advisory Panel
Asia Region Funds Passport (ARFP)

3. The APFF Network 3 Over 150 organizations Over 300 individual experts
Firms
Investment / commercial banks
Insurers and pension funds
Non-bank lenders
Asset managers
Law, accounting, consultancy firms
Corporates
Credit rating agencies
Credit bureaus
International / domestic industry associations
Government agencies
Finance ministries
Justice ministries
Trade ministries
Development assistance agencies
Foreign affairs ministries
Regulatory bodies
International organizations
ADB
BIS
IMF
OECD
World Bank/IFC
UNCITRAL
Academic / research institutions
Securities industry
Banking (general, trade finance, secured lending, factoring)
Insurance and Pensions
Asset management
Business and consumer credit information
Chambers of commerce
Central banks
Securities, banking, insurance regulators
International regulatory organizations
Over 150 organizations
Over 300 individual experts

4. The APFF Structure Asia-Pacific Financial Forum (APFF)4
APEC Finance Ministers Process (FMP)
APEC Business Advisory Council (ABAC)
Asia-Pacific
Financial Forum
(APFF)
APFF Work Streams
Financial Infrastructure Development Network
Trade / Supply Chain Finance
Capital Markets
Financial Market Infrastructure / Cross-Border Practices
Insurance / Retirement Income
Linkages / Structural Issues
Credit Information
Classic repo markets
Retirement /Long-Term Investment
Secured Transactions
Derivatives
Disaster Risk Financing /Insurance
Accounts Receivables Finance
Information for Investors
Asia Region Funds Passport

5. 2016 APEC Joint Finance Ministerial Statement5
2016 APEC JOINT FINANCE MINISTERIAL STATEMENT issued on 15 October 2016 in Lima includes the following paragraph, which is important to us.
"We commend ABAC for its contributions in 2016 for the implementation of the CAP, including the activities undertaken in the Asia-Pacific Financial Forum (APFF) and the Asia-Pacific Forum on Financial Inclusion.
We welcome ABAC’s report and recommendations on access to finance, infrastructure investment, capital markets, and health and disaster risk financing.
We encourage relevant authorities to collaborate with the private sector in advancing them in 2017."

6. The Cebu Action Plan (CAP) 6
A Ten-Year Roadmap for the APEC Finance Ministers’ Process FOUR PILLARS
FINANCIAL INTEGRATION
Financing MSMEs
Financial inclusion and literacy
Facilitating remittances
Financial services liberalization
Capital accounts liberalization
Asia Region Funds Passport
FISCAL TRANSPARENCY
Fiscal reforms
Open Data Initiative
Exchange of financial account information
Base erosion profit shifting
Tax and crime
FINANCIAL RESILIENCE
Macroeconomic policy
Disaster risk financing and insurance
Capital market development
INFRAST5RUCTURE
Knowledge portal
Standardization of terms and practices
Maximizing PPPs in infrastructure investment
Long-term investors
Urban development
Regional connectivity

7. Expanding the Region’s Long-Term Investor Base
APFF Insurance and Retirement Income Work Stream 7
APFF Progress Report 2016
Expanding the Region’s Long-Term Investor Base
Pension/Protection
Infrastructure/Investment
Regulatory/Accounting
Strengthening Financial Resilience
Disaster Risk Financing
Micro-Insurance

8. Roadmap for the Sustainable Development8
Liabilities
ALM
Assets
Infrastructure Projects
Long Term Investments
Long Term Returns
CONSUMERS
INSURERS AND
PENSION FUNDS
Capital Market
Regulation Accounting
Disaster Risk Financing
GOVERNMENT
Addressing the Aging Tsunami
Retirement Income & Longevity Solutions
Capital Market and Long Term Investments
Promote Sustainable Economic Development & Resilient Infrastructure
Enhance Disaster Risk Financing
Enhance Financial Inclusion
Reduce Fiscal Liabilities
Enhance Sovereign Rating

9. Mandatory provisions and scalable retirements systems
Pension/Protection 9
Mandatory provisions and scalable retirements systems
Tax incentives to promote long-term saving products
Product innovation and financial awareness

10. Promotion of infrastructure as a defined asset class
Infrastructure/investment 10
Promotion of infrastructure as a defined asset class
Increased fiscal spending on infrastructure projects
Adoption of financing vehicles within PPP framework

11. Bank-centric regulations Short-term oriented economic regime
Regulation/Accounting 11
Regulatory issues
Bank-centric regulations
Short-term oriented economic regime
“One-size-fits-all” model
Remaining key accounting issues
Unit of account
Scope for “variable fee approach”

12. 2017 work plan on Retirement/Long-Term Investment12
Retirement/Protection:
Case Study on selected APEC economies and examine gap and potential solutions on retirement income and longevity solutions
Coordination with pension industry (i.e. APIC) and dialogue with pension authorities
Infrastructure/Investment:
Case study on selected APEC economies and examine possible improvements to attract pension and insurance long term investors
Coordination with global initiatives (i.e. GIH, IISS) and securities industry (i.e. ASIFMA) and dialogue with securities authorities
Establish Islamic Infrastructure Investment Platform (I3P)
Regulation/Accounting
Case study on selected APEC economies and examine possible implementation support
Continue a dialogue and participate in conferences with regulators/supervisors/accounting standard setters to discuss relevant issues, and to coordinate with other stakeholders

13. Makoto Okubo (m-okubo@nipponlifeglobal.com)
Asia Pacific Financial Forum (APFF)
Insurance and Retirement Income Work Stream 13
For more details on the APFF, visit mackglobe.com or
Makoto Okubo 13