UK and Hong Kong sign MoU on mutual recognition of funds
Hong Kong’s Securities and Futures Commission (SFC) and the UK’s Financial Conduct Authority (FCA) have entered into an MoU on mutual recognition of funds, which will allow eligible Hong Kong public funds and United Kingdom retail funds to be distributed in each other’s market through a streamlined process.
The MoU also establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of eligible Hong Kong public funds and United Kingdom retail funds.
“This new cooperation framework with the FCA will not only bring benefit to the asset management industries in the United Kingdom and Hong Kong, but also offer investors in both markets with more investment choices. Equally important, expanding the mutual recognition of funds framework is consistent with our strategic goal of positioning Hong Kong as an international asset management centre. We look forward to working closely with the FCA under these strengthened regulatory ties,” said Ashley Alder, the SFC’s chief executive officer.
“We are very pleased to have agreed this framework, which paves the way to offering consumers greater choice and diversification in their investments. It reflects the UK’s commitment to open financial markets supported by effective regulation which delivers equivalent outcomes. We will continue to work closely with the SFC, both in connection with cross-border fund offerings and in wider areas of mutual benefit,” said Andrew Bailey, the FCA’s chief executive.