HONG KONG: SFC Launch Enhanced Fund Data Reporting

Friday June 29 2018

On 29th June 2018, the Securities and Futures Commission (SFC) published a Circular addressed to management companies of SFC-authorized unit trusts and mutual funds.

The purpose of the circular is to announce the launch of enhanced reporting requirements for SFC-authorized funds and to provide details about the implementation timeline and filing arrangements. The collection of enhanced funds data will enhance the SFC’s ability to perform its supervisory and regulatory responsibilities.

SFC-authorized funds refer to funds that are authorized by the SFC under the Code on Unit Trusts and Mutual Funds, save for UCITS funds, Recognized Jurisdiction Schemes and those under mutual recognition of funds arrangements.

Enhanced Reporting on Fund Data

In addition to the existing reporting obligations, the enhanced requirements will cover periodic reporting in the following areas:

(a)  liquidity profile of the Fund’s assets with reference to the liquidity categories;

(b)  the Fund’s subscription and redemption amounts;

(c)  the Fund’s asset allocation (with reference to a breakdown of major asset classes by country, asset quality and listing venue etc.); and

(d)  securities financing transactions and securities borrowing transactions of the Fund (including information on outstanding balances, counterparties, collateral issuers and types etc.). Securities financing transactions refer to securities lending, repos and reverse repos transactions.

Fund data required to be submitted under the enhanced reporting requirements is set out in full in the reporting forms.

The implementation timeline with effect from 30 September 2018 is:

After the first filing, the subsequent filing deadline for each type of report is 5 weeks from the report date.  For quarterly reporting, the quarter end report date is 31 March, 30 June, 30 September and 31 December.  For annual reporting, the year end report date is 31 December.

Reporting Forms and Filing Arrangements

Within seven business days of each report date, the SFC will send a notification email to the management company of each Fund.  The notification will include reporting forms, instructions for completing the forms and a link to the SFC Online Portal for submitting the completed forms.

The management company (or its authorised entity e.g. the fund’s administrator) should complete and file reporting forms with the SFC via the SFC Online Portal.

SFC Online Portal Account and Sample Reporting Forms

Management companies (or their authorised entities) that do not have an SFC Online Portal account should open an account as soon as possible via https://portal.sfc.hk/sfcportal/signin?locale=en and request an SFC online submission identification code at ipfunddata@sfc.hk which is a unique identification code for the purpose of online submissions.

Samples of the reporting forms are provided via the following links:

Attachment 1 – Liquidity profile (sample template) 
Attachment 2 – Subscription and redemption (sample template) 
Attachment 3 – Asset allocation (sample template) 
Attachment 4 – Securities financing transactions and securities borrowing transactions (sample template) 

Click on the link above for further information.