10.09.2018

UK And Hong Kong Agree Mutual Recognition of Funds

10.09.2018
Shanny Basar

The Financial Conduct Authority (FCA) and the Securities and Futures Commission (SFC) have entered into a Memorandum of Understanding on Mutual Recognition of Funds (MoU), which will allow eligible Hong Kong public funds and United Kingdom retail funds to be distributed in each other’s market through a streamlined process.

The MoU also establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of eligible Hong Kong public funds and United Kingdom retail funds.

Andrew Bailey, FCA Chief Executive said:

‘We are very pleased to have agreed this framework, which paves the way to offering consumers greater choice and diversification in their investments. It reflects the UK’s commitment to open financial markets supported by effective regulation which delivers equivalent outcomes. We will continue to work closely with the SFC, both in connection with cross-border fund offerings and in wider areas of mutual benefit.’

Ashley Alder, SFC Chief Executive Officer said:

‘This new cooperation framework with the FCA will not only bring benefit to the asset management industries in the United Kingdom and Hong Kong, but also offer investors in both markets with more investment choices. Equally important, expanding the mutual recognition of funds framework is consistent with our strategic goal of positioning Hong Kong as an international asset management centre. We look forward to working closely with the FCA under these strengthened regulatory ties.’

Source: FCA

Related articles

  1. Richard Turner of Insight Investment sees more automation and more transparency around cost and outcomes.

  2. The suite enables GAM to seamlessly manage market risk exposure and liquidity and investment risk.

  3. Asset manager anticipates an SEC decision on converting its fund to a spot bitcoin ETF by early July.

  4. Fidelity continues to hire thousands to support cryptocurrency.

  5. Tradeweb Draws Buy Side in Europe

    Net sales registered net outflows of €3bn, compared to €42bn in March 2022.