SFC Proposes Rules and Code for Open-ended Fund Companies
SFC Proposes Rules and Code for Open-ended Fund Companies
Introduction
On 28 June 2017, the Securities and Futures Commission (SFC) published its consultation proposals on the legal and regulatory requirements for the Open-ended Fund Company (OFC) structure. The consultation follows the approval of the Securities and Futures (Amendment) Bill 2016 (Amendment Ordinance), which introduced the new structure to enable investment funds to be established in Hong Kong in corporate form. The new fund structure is aimed at increasing Hong Kong’s attractiveness as a fund domicile and is part of a broader strategy to develop it as a full-service asset management centre. In formulating the code and rules, the SFC has adopted a principle-based rather than a prescriptive approach for the framework in order to facilitate flexibility in OFCs’ operations. Read more…