HONG KONG: SFC announces streamlined licencing process for overseas Fund Managers

Monday June 11 2007

The Hong Kong SFC has published a circular providing practical guidance to overseas fund managers when applying for a licence from the SFC and clarifying certain key aspects of the licensing requirements for fund managers.

The initiatives outlined in the circular are principally intended to make the licensing process easier and more streamlined for overseas hedge fund managers, in particular UK or US licensed/registered hedge fund managers.

The Circular sets out that where such Firms are already licensed or registered by the US SEC or the UK FSA as investment managers or advisers, with a good compliance track record and which serve only professional investors (or which have parent companies that satisfy the first two of these requirements), that they can expect to benefit from an expedited licensing process.

Such Firms should submit to the SFC a set of completed licence application forms relevant to their intended business activities in Hong Kong. Upon receipt of these forms, the SFC will commence a streamlined review process focusing principally on key areas of operations such as risk management, valuation, internal controls and management of conflicts of interest.

For further details on the process, view the Circular at the above link.