KEY SFC LICENSING ISSUES FOR VIRTUAL ASSET MANAGERS, VIRTUAL ASSET FUNDS DISTRIBUTORS AND VIRTUAL ASSET TRADING PLATFORM OPERATORS
On 1 November 2018, the Hong Kong Securities and Futures Commission (the “SFC”) issued a number of announcements that would potentially have a regulatory impact on those who conduct financial activities involving virtual assets in Hong Kong.
THE HONG KONG OPEN-ENDED FUND COMPANY – WILL IT MARK THE END OF THE USE OF OFFSHORE FUNDS FOR HONG KONG PRIVATE FUND MANAGERS?
The Open-ended Fund Company (the “OFC”) regime came into effect on 30 July 2018. With the introduction of the OFC, there is, for the first time, a Hong Kong domiciled corporate vehicle which is suitable to act as a fund vehicle.
REVISIONS TO THE FUND MANAGER CODE OF CONDUCT – THE COUNTDOWN BEGINS
In November 2017, the Securities and Futures Commission (“SFC”) published its Consultation Conclusions on certain proposals that would result in changes to the Fund Manager Code of Conduct (the “FMCC”) and the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (the “Code of Conduct”). These changes represent some of the most significant regulatory changes, at least in the past few years, affecting anyone who conducts any form of asset management business in Hong Kong.
HAVE REGULATORY DEVELOPMENTS IN HONG KONG KEPT PACE WITH THE PRIVATE FUNDS INDUSTRY?
Hong Kong positions itself as a global financial center and the asset management industry is an important sector within the Hong Kong financial services industry. It is a sector which is fast changing, driven by product innovation, market forces and changing legal landscape globally. Hong Kong faces challenges both within the Asian region and globally to maintain its status as a centre for asset management. Has it done enough so far to keep pace?…
PROFITS TAX EXEMPTION FOR OFFSHORE PRIVATE EQUITY FUNDS – IMPLICATIONS ON SFC LICENSING REQUIREMENTS
The Hong Kong Government gazetted the Inland Revenue (Amendment) (No.2) Ordinance 2015 (the “Ordinance”) on 17 July 2015, extending the profits tax exemption to private equity funds which previously may not have been available to them. The Ordinance will take retrospective effect, applying in respect of tax chargeable for any year of assessment commencing on or after 1 April 2015…
KEY ISSUES IN GETTING AN SFC LICENSE FOR ALTERNATIVE FUND MANAGERS.
One of the first challenges facing potential alternative fund managers (ie hedge fund, private equity and real estate fund managers) when setting up their new fund management business in HK is getting the appropriate SFC license. This article will examine the key issues often faced by potential alternative fund managers when getting an SFC license and the main requirements for getting an SFC license…