Changes to Hong Kong’s Open-ended Fund Companies Regime Take Effect 11 September 2020

Changes to Hong Kong’s private open-ended fund companies (OFCs) regime took effect on 11 September 2020 removing all investment restrictions on private OFCs and enabling Type 1 licensees to act as their custodians. The changes are detailed in the SFC’s Consultation Conclusions on Proposed Enhancements to the Open-ended Fund Companies Regime[1] and their implementation was announced by the SFC’s  press release[2] of 11 September 2020. A statutory re-domiciliation mechanism will also be implemented to allow overseas corporate funds to re-domicile in Hong Kong as OFCs. This requires amendments to Part IVA of the Securities and Futures Ordinance (SFO) which will take effect upon completion of the legislative process. Read More…

• Hong Kong Law Newsletter | Chartlons