Hong Kong SFC Authorization of UCITS III Mutual Funds

Our Financial Services Regulatory Practice and our Mutual Funds Practice represented and advised a European based asset management group with over EUR500 billion of assets under management over a multi-year period in respect of its flagship Luxembourg UCITS III equities umbrella funds, its flagship Luxembourg UCITS III debt umbrella fund and a newly established UCITS III umbrella fund targeting the retail market in the People’s Republic of China (“PRC”).

Our regulatory lawyers advised the asset management group in connection with:

  • the formation of a new Luxembourg SICAV structure for the new UCITS III umbrella fund targeting the retail market in the PRC;

  • the authorization of the umbrella funds in Hong Kong pursuant to section 103 of the Securities and Futures Ordinance (“SFO”) under the Code on Unit Trusts and Mutual Funds (“UT Code”) to enable the funds to be offered to the retail public in Hong Kong, including an application to approve the management group in respect of the use of derivatives for investment purposes, the preparation of Hong Kong offering materials, and the use of the Recognized Jurisdiction Schemes (“RJS”) framework

  • the authorization of new sub-funds and related marketing materials under the SFO pursuant to the UT Code, including the approval of investment management arrangements in respect of sub-funds with managers not situated in Acceptable Inspection Regime (“AIR”) jurisdictions

  • the de-authorization of existing sub-funds

  • the management of SFC requirements in respect of changes to the umbrella funds and the sub-funds, including applications to the SFC for approval for changes and preparation of notices to investors as required by the UT Code