Summary: - September 18, 2025: SFC and SCA sign MOU for mutual recognition of UAE investment funds and management companies. - UAE Investment Funds ("UAE IFs"): Must be eligible under SFC's Memorandum, fall into specific fund types (e.g., equity, bond), and comply with certain requirements for offering in Hong Kong. - Regulatory Compliance: UAE IFs must remain authorised in the UAE, adhere to UAE and Hong Kong laws, and appoint a Hong Kong representative. - Authorisation and Fees: SFC can approve UAE IFs for offering in Hong Kong, with applicants needing SCA certificates of eligibility. Fees include application, authorisation, and annual charges. - Guidelines: SFC and SCA provide guidelines and FAQs for investment funds in the UAE and Hong Kong, emphasizing investor protection and equal treatment.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On September 18, 2025, the Securities and Futures Commission ("SFC") and the Securities and Commodities Authority ("SCA") signed a memorandum of understanding (Memorandum) facilitating mutual recognition of investment funds and investment management companies. The Memorandum enables cooperation between these regulatory bodies, including the recognition of UAE Investment Funds and UAE Investment Management Companies eligible under the Memorandum.
On September 18, 2025, the article outlines the general principles followed by the Maritime and Ports Authority ("MPF") concerning UAE Investment Funds authorized or seeking authorization to offer to the public in Hong Kong. These principles include meeting eligibility requirements, maintaining UAE authorization, and compliance with relevant laws and regulations. The article also underscores the responsibility of UAE Investment Management Companies to ensure fair treatment for investors in both the UAE and Hong Kong, including investor protection and information disclosure.
On September 18, 2025, the eligibility requirements and types of eligible funds for UAE Investment Funds seeking SFC authorization are detailed. UAE Investment Funds must be one of the following types: general equity funds, bond funds, mixed funds, unlisted index funds, exchange-traded funds ("ETFs"), or feeder funds. Additionally, the UAE Investment Management Company must specify the fund type(s) under which the UAE Investment Fund falls.
On September 18, 2025, the article outlines compliance requirements for UAE Investment Funds. These include adherence to specific requirements set out for all funds and those applicable to each fund type. For investor protection and alignment with the Hong Kong regime, all funds must meet certain disclosure and representation requirements.
On September 18, 2025, the article outlines the necessity for UAE Investment Funds to appoint a representative in Hong Kong. The representative must be a firm licensed in compliance with Chapter 9 and 11.1(b) of the Code on Unit Trusts and Mutual Funds. Continuous supervision by the SCA and SCA Board of Directors is required.
On September 18, 2025, changes to UAE Investment Funds must comply with UAE and Hong Kong laws, and any changes impacting eligibility or requiring SFC approval must be submitted. Breaches of UAE domestic laws must be immediately notified and rectified.
On September 18, 2025, the SFC can withdraw or modify the authorization of UAE Investment Funds at any time. Sale and distribution must be conducted by SFC-licensed intermediaries, with accurate and complete offering documents. Ongoing disclosure requirements include periodic financial reports and announcements in English and Chinese.
On September 18, 2025, all advertising must comply with relevant Hong Kong regulations. For public offerings in Hong Kong, fees such as application, authorization, and annual fees must be paid.
On September 18, 2025, the SFC will deem UAE Investment Funds to have substantially complied with the UT Code requirements. However, specific requirements must be met for each type of fund. Detailed information can be found in Annex A.
On September 18, 2025, the SFC announced the first authorization opportunity for UAE Investment Funds. The SFC encourages early consultation with the Investment Products Division for guidance. The SFC may also issue additional resources on its website.
On September 18, 2025, applicants must request the SCA to provide a certificate confirming eligibility requirements are met. The SFC will not process applications without this certificate from the SCA.
On September 18, 2025, further details on the MRF application process for UAE Investment Funds seeking SFC authorization are available on the SFC’s website.
On September 18, 2025, the Investment Products Division provides guidelines for investment products in the UAE and Hong Kong. UAE Investment Funds require SCA confirmation to fall within eligible fund types during the application process.
On September 18, 2025, Active Exchange-Traded Funds ("ETFs") in the UAE must be non-complex investment products as per the Guidelines on Online Distribution and Advisory Platforms. Changes to schemes may not require SFC approval under certain conditions outlined in FAQs.
On September 18, 2025, investment funds must comply with minimum notice periods and content disclosure requirements for Hong Kong investors, ensuring equal treatment for UAE and Hong Kong investors. The disclosure requirements in Annex A of the SCA may be deemed met if included in the SCA-approved prospectus, avoiding duplication in Hong Kong covering documents.
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