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Cross Border Marketing of Retail Funds - Australia/Hong Kong
Applies to ASIC licensed managers that want to offer Managed Investment Schemes to clients in Hong Kong
What's new?
On 7 July 2008, the Australian Securities and Investment Commission (ASIC) and the Hong Kong Securities and Futures Commission (SFC) signed a 'declaration of mutual recognition' in order to facilitate the sale of retail funds to investors in each other's markets.
What does this mean for fund operators?
Essentially, schemes in Australia and Hong Kong will be recognised in the other's jurisdiction providing the managers follow certain rules and meet certain obligations in the other jurisdiction:
Australia
ASIC wil recognise Hong Kong schemes that are:
- regulated by the SFC
- not primarily promoted to investors in Australia
ASIC will also be releasing further guidance in the form of Class Order 08/506.
Hong Kong
The SFC has released their guidance and they will recognise Australian schemes provided they are:
- registered with ASIC
- managed by an AFSL holder
- not a hedge fund (as defined in the Hong Kong Unit Trust Code)
- do not source more than 30% of their funds from investors in Hong Kong
- not principally marketed to investors in Hong Kong
Further information
The above list of obligations is not exhaustive and should you wish to understand more in order to ensure that your fund meets the requirements of the jurisdiction that you wish to offer in, then please contact your Certainty consultant at (02) 9238 8091 or enquiries@certaintycompliance.com.au
Declaration of Mutual Recognition of Cross-Border Offering of Collective Investment Schemes: http://www.asic.gov.au/Declaration_SFC_ASIC
Hong Kong Securities and Futures Commission Circular: http://www.sfc.hk
ASIC Media Release: http://www.asic.gov.au