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The Securities and Futures Commission (SFC) today launched a three-month consultation on proposed amendments to the Code on Pooled Retirement Funds (PRF Code) (Note 1).
The proposals would enhance the SFC’s requirements for the operation of these funds and clarify the obligations of key operators including product providers, trustees, management companies and insurance companies (Note 2).
"In view of the wide participation in Hong Kong by employers and employees in occupational retirement schemes which invest in PRFs, it is particularly important to strengthen investor protection in this area," said Mr Ashley Alder, the SFC’s Chief Executive Officer. "The proposed changes will help ensure our regulatory regime is up-to-date and fit for purpose."
The public is invited to submit their comments to the SFC no later than 19 March 2021 via the SFC website (www.sfc.hk), by email to prfc-consultation@sfc.hk, by post or by fax to 2805 0007.
Notes:
- Pooled Retirement Funds (PRFs) and investment portfolios are only available to occupational retirement schemes as defined under the Occupational Retirement Schemes Ordinance. As of 30 September 2020, there were 2,962 ORSO schemes with 74,819 members participating in 33 PRFs and 409 pooled investment portfolios with total assets under management of $73 billion.
- PRFs and their underlying investment portfolios are structured in the form of a trust or insurance policy. Hence the proposed amendments are benchmarked against the regulatory requirements applicable to SFC-authorised unit trusts and investment-linked assurance schemes, as far as they are applicable and reasonably practicable.
