How to Handle the Latest Changes to the Fund Manager Code of Conduct

Major changes to the regulation of the asset management industry announced by the Securities and Futures Commission (“SFC”) last year have started to come into effect. The changes will affect managers of both private and public pooled investment funds as well as managers of segregated managed accounts. They will affect how investment funds are structured, operated and marketed, and also how asset managers will carry out their management functions. Although the SFC has characterized the changes as high-level principles-based “enhancements”, they include some specific prescriptive requirements in relation to matters such as custody arrangements, liquidity risk management controls, collateral valuation policies for securities lending, and disclosure of leverage.

The changes will be implemented through amendments to the Fund Manager Code of Conduct which will come into effect on November 17, 2018 as well as amendments to the Code of Conduct of Persons Licensed by or Registered with the SFC, some of which came into effect on August 17, 2018 and some of which will come into effect on November 25, 2018. Asset managers should who have not yet done so should conduct a review of their operations and fund documentation to ensure they will be able to comply.

Please join us for the lunch time seminar as we discuss these latest changes and the steps that may be necessary to accommodate them.

Speaker

Timothy Loh, Managing Partner

Mr. Loh has extensive experience advising SFC regulated asset managers on the formation and operation of private and public funds, the establishment of manufacturing and distribution operations, special trading situations and all aspects of the conduct of their business.

Please join us for the lunch time seminar as we discuss these latest changes and the steps that may be necessary to accommodate them.