The Securities and Futures Commission ("SFC") welcomes enhancements to the Mainland-Hong Kong Mutual Recognition of Funds ("MRF") scheme, effectiv
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
Summary of Circular to Virtual Asset Trading Platforms (VATPs) on Licensing Process and Revamped Second-phase Assessment
The latest SFC circular outlines an updated licensing process for virtual asset trading platforms (“VATPs”) including the new Second-phase Assessment procedures
Updated SFC Guidance on Management of Regulatory Capital
As economic conditions challenge Hong Kong businesses, the SFC has issued guidance to licensed corporations on compliance with regulatory capital requirements.
SPOTLIGHT ON
FAMILY OFFICES
On December 20, 2024, the Securities and Futures Commission ("SFC") welcomed the publication of revised provisions by the China Securities Regulatory Commission ("CSRC") and operating guidelines by the People’s Bank of China and the State Administration of Foreign Exchange. These revisions aim to implement enhancements to the Mutual Recognition of Funds ("MRF") scheme.
One of the five measures announced by the CSRC on April 19, 2024, for capital market cooperation with Hong Kong, the MRF enhancements include: (i) relaxing the cap on the value of units sold to investors in the host market from 50% to 80% of the fund’s total assets; and (ii) allowing the delegation of investment management functions to overseas asset management companies within the same group.
For Hong Kong funds approved by the CSRC for public offering in Mainland (Hong Kong MRF Funds), the relaxation of sales limits will increase their maximum potential sales value on the Mainland by three times. Additionally, the relaxation of overseas delegation restriction will provide more opportunities for international asset managers to leverage their expertise and offer offshore solutions to Mainland investors.
These enhancements, effective from January 1, 2025, are expected to expand business potential for asset managers and significantly increase the diversity and scale of products under the MRF scheme.
View the full article:Source
