HONG KONG: SFC Consult on Open-Ended Fund Companies

Monday May 14 2018

On 28 June 2017, the Securities and Futures Commission (SFC) launched a two month consultation on proposed rules and code for new open-ended fund companies (OFCs) to be established in Hong Kong. Consultation ended on 28 August 2017.

The consultation set out the SFC’s proposed Securities and Futures (Open-ended Fund Companies) Rules (OFC Rules) and Code on Open-ended Fund Companies (OFC Code), which include requirements relating to the OFC’s formation, its key operators, ongoing maintenance, termination and winding-up, and will be applicable to all OFCs.

On 23 June 2017, the Hong Kong Government published the Inland Revenue (Amendment) (No. 4) Bill 2017 to provide for a profits tax exemption in respect of certain privately offered OFCs.

Consultation conclusions on the OFC Rules and OFC Code are pending.

It is currently expected that the new OFC regime will be implemented in 2018 following the conclusion of the consultation and completion of the legislative process.

Click on the link above for further information.