The Securities and Futures Commission (SFC) today announced that amendments to the Code on Open-ended Fund Companies (OFC Code) (Note 1) have taken effect. Among other changes, private open-ended fund companies (OFCs) in Hong Kong are no longer subject to investment restrictions and the eligibility requirements for OFC custodians have been expanded.
The SFC has issued a circular to the industry on the implementation of the revised OFC regime. Existing private OFC custodians are allowed a six-month transition period from today to ensure compliance with new safekeeping requirements (Note 2).
Notes:
- The final form of the amendments to the OFC Code was set out in the Consultation Conclusions on Proposed Enhancements to the Open-ended Fund Companies Regime and Further Consultation on Customer Due Diligence Requirements published on 2 September 2020. The amendments were gazetted today and became effective immediately.
- As set out in Appendix A to the amended OFC Code.
