Hong Kong government begins investment fund study
24 March 2014
Category: News, Asia, Global, Hong Kong
By Asia Asset Management
The Financial Services and the Treasury Bureau launched a three-month public consultation on introducing a new open-ended fund company structure to expand Hong Kong's legal structure for investment-fund vehicles on March 20.
The Financial Secretary announced in the Budget that Hong Kong would provide the legal and regulatory frameworks to strengthen its position as a premier international asset management centre.
According to Hong Kong’s Information Services Department, the consultation will seek views from the public and the financial services industry on the policy and legal frameworks for open-ended fund companies.
Currently, an open-ended investment fund may be established under Hong Kong law in the form of a unit trust, but not in corporate form due to restrictions on capital reduction under the Companies Ordinance.
It is proposed that the new open-ended fund company vehicle will be established under the Securities & Futures Ordinance and be regulated and supervised by the Securities & Futures Commission.