Hong Kong’s securities regulator has simplified the process of making changes to Undertakings for Collective Investment in Transferable Securities (UCITS) funds that have already been authorised to operate in the city to make the asset management industry more competitive.
The funds no longer need approval from the Securities and Futures Commission (SFC) to make material changes to their investment objectives, policies and restrictions, provided the amendments comply with the requirements of their home jurisdictions.
They also don’t need to seek the SFC’s green light to make changes to depository and investment delegates that are supervised by their home regulators. These delegates are the financial institutions that safeguard fund assets, and the entities or individuals that manage the investments.
In addition, the SFC has aligned its notification requirements with those of the funds’ home regulators.
The SFC announced the measures in a statement on its website on November 28, estimating that the move will slash by 50% the number of applications it receives seeking to amend UCITS schemes.
“These enhancements are integral to the SFC’s ongoing efforts to strengthen Hong Kong’s competitiveness as a leading global asset management centre, enabling UCITS funds to operate efficiently in our dynamic market,” says Alexandra Yeong, the regulator’s interim head of investment products.
