Curbs eased on fund companies

Business | Stella Zhai 3 Sep 2020

Investment restrictions on open-ended fund companies are set to be removed, the Securities and Futures Commission announced.

The regulator released consultation conclusions on enhancements to rules and said it will allow licensed or registered securities brokers to act as custodians for private OFCs and introduce a statutory mechanism for overseas corporate funds to set up in Hong Kong.

The removal of the investment restrictions and expansion of custodian eligibility requirements takes immediate effect with the gazetting of the revised code on open-ended fund companies.

A six-month transition will be provided for private OFC custodians to make adjustments to comply with the new requirements, and switches to the SAR from overseas can take effect upon completion of the legislative process.

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