The Securities and Futures Commission (SFC) announced that has launched a two-month consultation on the detailed legal and regulatory requirements applicable to the new open-ended fund company (OFC) structure. The OFC structure will enable investment funds to be established in corporate form in Hong Kong, in addition to the current unit trust form.
The consultation sets out the SFC’s proposed Securities and Futures (Open-ended Fund Companies) Rules (OFC Rules) and Code on Open-ended Fund Companies (OFC Code), which include requirements relating to the OFC’s formation, its key operators, ongoing maintenance, termination and winding-up, and will be applicable to all OFCs.
The introduction of the OFC vehicle is part of our initiatives to develop Hong Kong as a full-service international asset management centre,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “The new fund structure will accelerate the development of Hong Kong’s asset management industry and enhance Hong Kong’s position as a preferred fund domicile,” he added.
In preparing the proposed OFC Rules and OFC Code, the SFC took into account comments received during the Government’s public consultation on the OFC framework and the views of industry stakeholders, as well as international regulatory standards and local company laws. Implementation of the new OFC regime is envisaged in 2018 following the conclusion of the consultation and completion of the legislative process.