HONG KONG: Changes to the Open-Ended Fund Companies Regime Take Effect

Friday September 11 2020

On 11^th September 2020, the Securities and Futures Commission (SFC) announced that amendments to the Code on Open-ended Fund Companies (OFC Code) have taken effect. Among other changes, private open-ended fund companies (OFCs) in Hong Kong are no longer subject to investment restrictions and the eligibility requirements for OFC custodians have been expanded.

The SFC has issued a circular to the industry on the implementation of the revised OFC regime. Existing private OFC custodians are allowed a six-month transition period from today to ensure compliance with new safekeeping requirements.

Implementation of changes to the OFC regime

The SFC released the consultation conclusions on enhancements to the OFC regime on 2 September 2020.
The amendments to the Code on Open-ended Fund Companies (OFC Code) to implement the changes were gazetted today and became immediately effective. The revised OFC Code is available on the SFC website.

Transition period for existing private OFC custodians

To enable existing private OFC custodians to ensure compliance with the requirements prescribed in the new Appendix A to the OFC Code, these custodians will be given a six-month transition period from today to 10 March 2021 to comply.

Click on the link for further information.