On May 14, 2025, the Securities and Futures Commission ("SFC") of Hong Kong and the Central Bank of Ireland ("CBI") signed a Memorandum of Understanding ("MoU") to facilitate mutual recognition of certain funds and management companies between the two jurisdictions. This agreement aims to enhance cross-border cooperation, streamline regulatory processes, and ensure investor protection. Key principles and requirements were outlined for Irish Covered Funds seeking authorization and public offering in Hong Kong. The document also specifies the application process and requirements for funds applying under the "Fund Authorisation Simple Track" (FASTrack).
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On May 14, 2025, the Securities and Futures Commission ("SFC") and the Central Bank of Ireland ("CBI") executed a memorandum of understanding ("MoU") to enhance cross-border cooperation between Hong Kong and Ireland, particularly focusing on mutual recognition of covered funds and management companies.,The MoU, signed on May 14, 2025, targets collective investment schemes domiciled in either Hong Kong or Ireland that are offered to the public in both jurisdictions on a cross-border basis.,The agreement includes management companies of collective investment schemes based in Hong Kong or Ireland, with specific terms defining 'Irish Covered Fund' and 'Irish Covered Management Company'.,The principles governing the offering of Irish Covered Funds in Hong Kong, authorized by the CBI and regulated by the SFC, were outlined. Key principles include meeting eligibility requirements, compliance with local and Hong Kong laws, investor protection, fair treatment, and disclosure of information.,Eligible funds must be general equity, bond, mixed funds, feeder funds, unlisted index funds, passively managed index tracking exchange traded funds ("ETFs"), or listed open-ended funds. All funds must comply with the requirements outlined in paragraphs 12-33 and Annex A. The Irish Covered Management Company must appoint a representative firm in Hong Kong.,The Irish Covered Fund and its management company must remain authorized and supervised by the CBI, and any breaches of Irish laws or the MoU's requirements must be reported to both regulatory bodies.,The SFC and CBI may extend the Memorandum of Understanding to other fund types in the future. Applications for Irish Covered Funds seeking authorisation will be processed under the FASTrack or two-stream approach, with specified criteria and timelines for each stream.,The application process involves submitting various documents, including an application form, information checklist, offering documents, constitutive documents, and a fee, with the SFC assessing the applications within five business days.
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