The New Capital Investment Entrant Scheme (New CIES)1 was launched on 1 March 2024 aiming to attract high net worth investors (including foreign and Chinese nationals) to reside in Hong Kong with a permanent residency status...more
On 27 December 2023, the Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued a consultation paper (the Consultation) proposing regulatory regime for...more
Opening the door for retail Investors: SFC-authorized virtual asset funds On 22 December 2023, the Hong Kong Securities and Futures Commission (SFC) issued a circular on SFC-authorized funds with exposure to virtual assets...more
1/15/2024
/ Bitcoin ,
Chicago Mercantile Exchange (CME) ,
Commodities ,
Cryptocurrency ,
Disclosure Requirements ,
ETFs ,
Ether ,
Futures ,
Hong Kong Monetary Authority (HKMA) ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Valuation
The Hong Kong Securities and Futures Commission (SFC) published its consultation conclusions on regulation of virtual asset trading platforms (Conclusions) on 23 May 2023. In the Conclusions, the SFC confirmed that virtual...more
The current regulatory requirements in Hong Kong with regards to managing funds that invest in "virtual assets" ("VA") can be summarized as follows – if an asset manager has a licence from the Hong Kong Securities and Futures...more
On 27 May 2022, the Hong Kong Securities and Futures Commission ("SFC") and the China Securities Regulatory Commission ("CSRC") published a joint announcement (the "Joint Announcement") on the inclusion of eligible...more
6/20/2022
/ China ,
China Securities Regulatory Commission (CSRC) ,
EFTs ,
Exchange-Traded Products ,
Financial Markets ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Opportunities ,
Joint Statements ,
Policy Statement ,
Popular ,
Stock Connect
In August 2021, the Securities and Futures Commission of Hong Kong ("SFC") published the Consultation Conclusions on the Management and Disclosure of Climate-Related Risks by Fund Managers ("Consultation Conclusions"), that...more
The Hong Kong government on 20 March 2020 published the Limited Partnership Fund Bill ("Bill") which provides for a new limited partnership regime for private funds ("LPF") in Hong Kong.1 As we see a greater number of fund...more
4/8/2020
/ Asia ,
Coronavirus/COVID-19 ,
Delays ,
General Partner ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Management ,
Limited Partnership Funds ,
Private Equity Funds ,
Proposed Amendments ,
Registration Requirement ,
Securities and Futures Ordinance (SFO)
In the midst of the current market volatility in Hong Kong, tumbling oil prices and recent U.S. stock market turbulence, one may say that the markets are in “stressed” conditions. As the impacts of the COVID-19 pandemic on...more
The Hong Kong Securities and Futures Commission (SFC) issued a circular (Circular) on January 7, 2020, which clarifies that private equity firms conducting, or holding themselves out as conducting, regulated activities in...more
The Hong Kong Securities and Futures Commission (SFC) issued a circular (Circular) on January 7, 2020, which clarifies that private equity firms conducting, or holding themselves out as conducting, regulated activities in...more
2/5/2020
/ Asset Management ,
Co-Investment Rights ,
Fund Managers ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Licensing Rules ,
New Circular ,
Private Equity ,
Private Equity Firms ,
Privately Held Corporations ,
Securities and Futures Ordinance (SFO)
The Hong Kong Financial Secretary announced in his 2019-20 Budget speech that the government was seeking to establish a limited partnership regime for funds (LPF), in order to facilitate industry development while maintaining...more
1/18/2020
/ AML/CFT ,
Anti-Money Laundering ,
Asia ,
Cayman Islands ,
Consultation Papers ,
Counter-Terrorist ,
Financial Services Industry ,
Fund Managers ,
General Partner ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Management ,
Investor Protection ,
Limited Partnerships ,
Private Equity Funds ,
Proposed Legislation ,
Recordkeeping Requirements ,
Registration Requirement ,
Safe Harbors ,
Singapore ,
Stamp Duty Land Tax
In light of an increasing demand for virtual asset investment products, the Hong Kong Securities and Futures Commission (SFC) has been taking steps to clarify the legal and regulatory requirements for this market. In this...more
11/6/2019
/ Asset Management ,
Digital Assets ,
Digital Currency ,
Fund Managers ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Funds ,
Investment Management ,
Investment Portfolios ,
Investors ,
Licensing Rules ,
Portfolio Managers ,
Terms and Conditions ,
Utility Tokens ,
Virtual Currency
The Hong Kong Securities and Futures Commission (SFC) has announced that it reprimanded and fined a Hong Kong private equity firm, SEAVI Advent Ocean Private Equity Limited (PE Firm), for employing or appointing unlicensed...more
11/2/2019
/ Asset Management ,
Breach of Duty ,
Code of Conduct ,
Debentures ,
Enforcement Actions ,
Fines ,
Fund Managers ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investors ,
Licensing Rules ,
Private Equity Firms ,
Private Investment Funds ,
Professional Disciplinary Actions ,
Securities ,
Unlicensed Professionals
The Guidelines on Online Distribution and Advisory Platforms (Guidelines) issued by the Hong Kong Securities and Futures Commission (SFC) will become effective on 6 July 2019. With the recent expansion of various online...more
7/3/2019
/ Code of Conduct ,
Complex Financial Products ,
Derivatives ,
Final Guidance ,
Governance Standards ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Funds ,
Investment Products ,
Online Platforms ,
Operators ,
Public Consultations ,
Robo-Advisors ,
Suitability Requirements
After a year of consultation with the mutual funds industry regarding changes that aim to modernise the regulatory regime for SFC-authorised funds, the Hong Kong Securities and Futures Commission (SFC) revised the Code on...more
4/16/2019
/ Amended Rules ,
Derivatives ,
Eligibility ,
Financial Derivative Instruments (FDIs) ,
Financial Services Industry ,
Fund Managers ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Funds ,
Mutual Funds ,
Operational Requirements ,
Prospectus ,
Securities Financing Transactions (SFTs) ,
Transitional Arrangements ,
Unit Trusts
Hong Kong is increasingly a popular jurisdiction for fund distribution, given its nexus with the People’s Republic of China. Historically, investment funds usually have been established in the form of offshore mutual funds,...more
10/22/2018
/ Asset Management ,
Business Formation ,
Corporate Taxes ,
Financial Services Industry ,
Fund Managers ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Incorporation ,
Offering Documents ,
Open-Ended Fund Companies (OFCs) ,
Privately Held Corporations ,
Publicly-Traded Companies ,
Qualified Investment Funds (QIFs) ,
Registration Requirement
Following an initial “soft” consultation with industry participants and relevant stakeholders, the Securities and Futures Commission (SFC) launched a three-month consultation on proposed amendments to the Code on Unit Trusts...more
4/5/2018
/ Asset Diversification ,
Capital Requirements ,
Closed-End Funds ,
Custodians ,
Derivatives ,
Disclosure Requirements ,
ETFs ,
Financial Reporting ,
Financial Services Industry ,
FSB ,
Hedge Funds ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Index Funds ,
Internal Controls ,
Investment Funds ,
Investment Portfolios ,
Investor Protection ,
IOSCO ,
Loans ,
Management Companies ,
Money Market Funds ,
Multinationals ,
NAV ,
Over The Counter Derivatives (OTC) ,
Pooled Investment Vehicles ,
Public Consultations ,
Public Funds ,
Retirement Funds ,
Risk Management ,
Securities ,
Securities Financing Transactions (SFTs) ,
SEHK ,
SFC ,
Trustees ,
UCITS
The Hong Kong Securities and Futures Commission (SFC) on 16 November 2017 published its Conclusions on its one-year consultation in relation to enhancement of asset management regulation and point-of-sale transparency...more
1/11/2018
/ Amended Rules ,
Asset Management ,
Code of Conduct ,
Financial Stability Board ,
Fund Managers ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Intermediaries ,
IOSCO ,
Liquidity ,
Point of Sale Terminals ,
Reporting Requirements ,
Risk Management ,
Transparency
The Hong Kong Securities and Futures Commission (SFC) recently released a circular outlining its views on how asset managers should address certain conflicts of interest between private funds and separately managed accounts...more
Since January 2017, more than $2 billion has been raised through the rapidly growing market for so-called “token sales” or “initial coin offerings” (ICOs). The U.S. Securities and Exchange Commission (SEC) announced on July...more
10/7/2017
/ BaFin ,
Banking Restrictions ,
Banks ,
China ,
Corporate Counsel ,
Corporate Issuers ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Conduct Authority (FCA) ,
Financial Regulatory Reform ,
Financial Services Industry ,
Germany ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Initial Coin Offering (ICOs) ,
Investors ,
Monetary Authority of Singapore ,
People's Bank of China ,
Securities and Exchange Commission (SEC) ,
Singapore ,
Token Sales ,
UK ,
Unregistered Securities ,
Young Lawyers
Recently, the Hong Kong Securities and Futures Commission (SFC) published a consultation paper on the Securities and Futures (Open-ended Fund Companies) Rules (Rules) and Code on Open-ended Fund Companies (Code) which, if...more
8/18/2017
/ Board of Directors ,
Business Formation ,
Corporate Dissolution ,
Corporate Management ,
Corporate Structures ,
Custodian of Records ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investment Management ,
Open-Ended Fund Companies (OFCs) ,
Registration Requirement ,
SFO ,
Shareholder Rights
The use of online platforms for distribution of financial products has become increasingly popular in Hong Kong. In May 2017, the Hong Kong Securities and Futures Commission (SFC) issued a Consultation Paper inviting comments...more
6/26/2017
/ Code of Conduct ,
Comment Period ,
Complex Financial Products ,
Corporate Governance ,
Financial Services Industry ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Investor Protection ,
Online Distribution ,
Online Platforms ,
Proposed Guidance ,
Public Consultations ,
Retail Investors ,
Risk Management ,
SEHK
The Securities and Futures Commission of Hong Kong (SFC) recently introduced the “Senior Management Accountability Regime” (regime), in an effort to make senior managers (particularly those who are not already designated as...more