HONG KONG: SFC launches consultation on asset management regulation

Wednesday November 23 2016

On 23^rd November 2016, the Hong Kong Securities and Futures Commission (SFC) launched a three-month consultation on proposals to enhance the regulation of the asset management industry in Hong Kong to better protect investors’ interests and ensure market integrity.

The SFC has proposed enhancements in respect of the following areas in the Fund Manager Code of Conduct (FMCC), some of which are codifications of existing requirements and practice:

(a) Securities lending and repurchase agreements (repos)

(b) Custodian / safe custody of fund assets

(c) Liquidity risk management

(d) Disclosure of leverage

The SFC has invited market participants and interested parties to submit written comments on the proposals discussed in the consultation paper or to comment on related matters that might have a significant impact upon the proposals by no later than 22^nd February 2017.

Click on the above link to view the Consultation Paper.