The Securities and Futures Commission said it will implement regulatory enhancements to the Code on Unit Trusts and Mutual Funds that are scheduled to take effect in November, a move to strengthen the competitiveness and appeal of the city's retail fund regime.
The proposed measures include the introduction of a Value-at-Risk approach for retail funds' derivative exposure management, which would support broader fund strategies to enrich retail product offerings.
Other facilitative measures include streamlined requirements for management company acceptability and feeder funds, which provide managers with greater operational flexibility.
At the same time, improved safeguards for liquidity risk management and money market funds will help enhance the resilience of Hong Kong retail funds in a dynamic and fast-changing market landscape, the SFC noted.
The improvement underscores the SFC's commitment to protecting investors and aligns the city's regulatory framework with international standards, the regulator said.
"These enhancements will strengthen investor protection and help position Hong Kong's retail fund regime for the future, ensuring that it remains competitive to keep in step with evolving market needs," said Elisa Ng, the SFC's Executive Director of Investment Products.
"The SFC will continue to harness opportunities from product innovation to cement Hong Kong’s status as a premier international asset and wealth management centre," Ng added.
