Hong Kong and Thailand's market watchdogs have signed a pact that will allow public funds to be distributed in each other's markets within a year.
The Securities and Futures Commission and the Securities and Exchange Commission of Thailand entered into a memorandum of understanding on Mutual Recognition of Funds to allow eligible Hong Kong and Thai public funds to be distributed in each other's market through a streamlined process.
"This new cooperation framework signifies a major expansion of our MRF network in Asia. It opens up new business opportunities for fund management firms and broadens cross-border investment channels and choices for investors in both markets," said SFC chief executive Ashley Alder.
The MoU establishes a framework for the exchange of information, dialogue as well as regulatory cooperation in relation to the cross-border offering of eligible Hong Kong and Thai funds.
In addition, the regulators agreed to expedite the approval process of a local feeder fund investing in an MRF-eligible Thai or Hong Kong master fund.
Both regulators will endeavor to take all actions necessary to implement the mutual recognition of funds scheme within six to 12 months, the SFC said.