Activities involving asset management, including the management of securities and futures contracts, are a regulated activity of the Type 9 system under the SFO, which requires a licence issued by the CFS. Active marketing of all services that would constitute a regulated activity if it were carried out in Hong Kong would also require a licence. Fund managers licensed in Hong Kong and separately managed accounts are also subject to applicable code of conduct and FMCC requirements. It is also anticipated that the management company will have at least two key individuals each with at least five years of experience in managing public funds, although an existing fund management group management company may use the resources and group expertise to meet this requirement, in accordance with the revised UT code. The minimum content of an investment management agreement should include at least the following provisions: As established in question 24, individuals proposing investment funds, including non-market sales funds, must be licensed by the CFS to carry out regulated Type 1 activities in securities trading , unless a waiver applies. The CFS has issued a circular to eligible investment fund management companies SFC and investment funds to address green or environmental, social and governance (ESG) funds. As stated in the april 11, 2019 circular, the aim is to improve the comparability of information between similar types of SFC-eligible green funds or ESG, as well as their transparency and visibility, in order to facilitate informed investment decisions in these developing investment sectors. The CFS recognizes that the circular is a first step in SFC`s efforts to improve advertising standards for green funds or GSS and will take into account local and international market and regulatory developments and, where appropriate, provide additional guidance or impose additional requirements for green or esG funds. In accordance with the 2016 Securities and Contracts (Amendment) Regulation, published in 2016, which are the framework for open investment funds structured in the form of a business and which, subject to the detailed rules and requirements of the OFC rules and the OFC code, must be submitted for prior approval by the CFS as part of a registration procedure and must meet certain important requirements regarding the administrator. , directors, directors and other governance requirements.
Yes, yes. Fund management is a regulated Type 9 asset management activity and, as such, fund managers must have a CFS-approved licence before transactions can be carried out in Hong Kong. The prior agreement of the CFS is necessary before becoming a key shareholder in a licensed company. An indeterminate fund established in Hong Kong is established through a trust company under Hong Kong law and takes the form of an investment fund. Established in 2016, the Securities and Futures (Amendment) Regulation is the framework for open investment funds structured in the form of a business and it is now possible to create an open fund domiciled in Hong Kong in the form of a structure of open-ended, variable-capital fund companies. Other detailed rules and requirements are included in the Open-find Fund Companies Rules (as an SFO subsidiary law) and in the SFC`s Code on Open-ended Fund Companies (CODE OFC).