On 2 September 2020, Hong Kong’s Securities and Futures Commission (SFC) published the Consultation Conclusions on Proposed Enhancements to the Open-ended Fund Companies (OFC) Regime and Further Consultation on Customer Due Diligence Requirements. The Consultation Conclusion summarized the feedback from industry members and the SFC’s response with regards to its consultation paper issued in late 2019.
This resource highlights some of the enhancements to private OFCs that the Consultation Conclusion confirmed, including: custodian eligibility requirements being expanded to include Type 1 licensed entities, the expansion of private OFCs’ investment scopes to allow investment in all asset classes, the removal of all investment restrictions on private OFCs, and the re-domiciliation of overseas corporate funds being permitted, so long as they satisfy requirements for OFC registration.
Authors: Hayden Flinn, Co-Chief Executive & Partner, and Cindy Shek, Partner, King & Wood Mallesons