HONG KONG: SFC Release Circular on Mutual Funds and Unit Trust Post Authorisation Process

Thursday January 25 2018

On 25^th January 2018, the Securities and Futures Commission (SFC) released a circular on Mutual Funds and Unit Trust Post Authorisation Process.

The purpose of this circular is to announce that, with effect from 1 February 2018 (“Adoption Date”), the revamped process (the “Revamped Post Authorization Process”) of applications for the approval of post authorization changes (including scheme changes, termination, merger and withdrawal of authorization) and authorization of revised offering documents for SFC-authorized funds will be formally adopted.

Capitalized terms shall have the same meaning as defined in the SFC’s circular issued on 30 June 2017 entitled “Launch of pilot revamped process to enhance the processing of post authorization applications” (“June 2017 Circular”) unless otherwise defined.

The Revamped Post Authorization Process was introduced with a view to increase the transparency and efficiency of our approval process without compromising investor interest and protection.  For details regarding the Revamped Post Authorization Process, please refer to the June 2017 Circular.

Since its implementation, the SFC has been closely monitoring the operation of the Revamped Post Authorization Process.  Besides maintaining ongoing dialogues with the applicants, the SFC has, during the Pilot Period, continued to engage various industry participants in order to obtain a better understanding of the industry’s feedback on the Revamped Post Authorization Process.

The following documents have been revised and published to provide further guidance and clarification in order to facilitate applicants’ preparation for their post authorization applications, taking into account the operational experience of the SFC and comments from the industry:

1. a) updated
2. b) an updated On-going Compliance Form for Notice of Mergers / Restructuring / Termination / Withdrawal of Authorization;
3. c) updated standardized templates for confirmations on compliance;
4. d) updated Chinese Translation Confirmations; and
5. e) an updated set of Revamped Post Authorization Process FAQ.

The Revamped Post Authorization Process applies to all Applications received by the SFC during the Pilot Period and will continue to apply to all Applications received by the SFC on or after the Adoption Date.

The updated forms, standardized templates for confirmations on compliance and Chinese Translation Confirmations (“Forms and Confirmations”) are available for use with immediate effect.  Applicants may choose to use the existing or updated Forms and Confirmations in support of their Applications received by the SFC on or before 14 February 2018.  For all Applications received by the SFC after 14 February 2018, applicants must complete the updated Forms and Confirmations.

Please click on the above link for more information.