On 28 Jan 2025, the HKMA circulated an SFC document detailing supervisory findings on deficiencies in private fund and discretionary account management, noting breaches in conflicts of interest, risk management, investment mandates, investor communications, and valuation practices. The HKMA directed RIs to address these issues and confirmed it will monitor asset management activities during its supervisory process.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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HKMA Circular on SFC Supervisory Findings
On 28 Jan 2025, the Hong Kong Monetary Authority (HKMA) issued a circular to all Registered Institutions (RIs) drawing attention to a Securities and Futures Commission (SFC) circular concerning deficiencies and substandard conduct identified in the management of private funds and discretionary accounts. The HKMA emphasized that RIs engaged in asset management must take due regard to the SFC's findings, which highlighted regulatory breaches across key areas including conflicts of interest, risk management, investment adherence to mandate, investor information provision, and valuation methodologies.
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