HONG KONG: FAQs on MPF Products, Pooled Retirement Funds and Procedures of Application for Authorization relating to Structured Investment Products

Wednesday August 12 2020

On 12^th August 2020, the Securities and Futures Commission published the updated frequently asked questions on MPF products, pooled retirement funds and procedures of application for authorization relating to structured investment products under the code on unlisted structured investment products,

Frequently Asked Questions relating to MPF Products

Question: What are the requirements for submitting documents and application fee in support of a new MPF product application to the SFC?

Answer: To commence an application, various documents, including, for example, offering documents, completed compliance checklist and confirmations, as well as the application fee are required to be submitted to the SFC.

• Submission of application documents by soft copy only
• Alternatives for signing application documents
• Taking up new MPF application(s) with application fee(s) to follow

Question: What does the applicant need to submit to the SFC after the SFC has granted authorization with conditions to the new MPF product application in order for the authorization to become effective?

Answer: Under section 104(1) and section 105(1) of the Securities and Futures Ordinance, the SFC may, where it considers appropriate, authorize an MPF product and, where applicable, the issue of its offering document respectively, subject to such conditions as the SFC considers appropriate. For the authorization of an MPF product and, where applicable, its offering document (“Authorization”) to become effective, the applicant is required to fully comply with all the conditions that are required to be satisfied for the Authorization to take effect as set out in the SFC’s authorization letter (“Authorization Letter”). In particular, a key condition will be the granting of final approval by the MPFA (which is the primary regulator of the MPF products) in order for the Authorization to become effective.

Frequently Asked Questions relating to Pooled Retirement Funds

Question: What are the requirements for submitting documents and application fee in support of a new PRF application to the SFC?

Answer: To commence an application, various documents, including, for example, offering documents, completed compliance checklist and confirmations, as well as the application fee are required to be submitted to the SFC

Question: What does the applicant need to submit to the SFC after the SFC has granted authorization with conditions to the new PRF application in order for the authorization to become effective?

Answer: Under section 104(1) and section 105(1) of the SFO, the SFC may, where it considers appropriate, authorize a PRF and the issue of its offering document respectively, subject to such conditions as the SFC considers appropriate. For the authorization of a PRF and its offering document (“Authorization”) to become effective, the applicant is required to fully comply with all the conditions that are required to be satisfied for the Authorization to take effect as set out in the SFC’s authorization letter (“Authorization Letter”). For the Authorization to become effective, the applicant must submit to the SFC a duly completed and executed Confirmation of Fulfilment of Authorization Conditions (a standard form of the confirmation is set out in Annex K to the Compliance Checklist) together with the required documents as stated in the Authorization Letter.

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