The Securities and Futures Commission (SFC) today released consultation conclusions on proposed amendments (Note 1) to the Code on Pooled Retirement Funds (PRF Code).
The SFC will implement the proposals (Note 2) set out in the consultation paper with clarifications to specific requirements such as obligations of PRFs’ key operators and to allow flexibility for certain operational and disclosure requirements.
“These changes will ensure our regulations governing pooled retirement funds are up-to-date and fit for purpose,” said Ms Christina Choi, Executive Director, Investment Products. “A robust regulatory regime will strengthen investor protection, particularly in view of the wide participation in Hong Kong by employers and employees in occupational retirement schemes which invest in PRFs.”
The revised PRF Code will become effective upon gazettal. A 12-month transitional period from the effective date of the revised PRF Code will generally be provided for existing SFC-authorised PRFs and their underlying investment portfolios. The SFC will also provide further guidance to the industry regarding the implementation and transitional arrangements by way of frequently asked questions.
Notes:
- On 18 December 2020, the SFC issued a Consultation Paper on Proposed Amendments to the Code on Pooled Retirement Funds. The consultation ended on 19 March 2021. The SFC received five written submissions from product providers, industry associations and a law firm. PRFs and investment portfolios are only available to occupational retirement schemes as defined under the Occupational Retirement Schemes Ordinance.
- Key amendments include enhancing requirements for the operation of PRFs and clarifying the obligations of key operators including product providers, trustees, management companies and insurance companies.
