Hong Kong's Securities and Futures Commission Adopts Proposals To Allow Greater Flexibility For Authorized Funds In Dissemination Of Prices And Net Asset Values

The Securities and Futures Commission (SFC) today released Consultation Conclusions on proposals to amend the Code on Unit Trusts and Mutual Funds to give public funds greater flexibility in determining the means for making public their offer and redemption prices, net asset values (NAVs) and notices of dealing suspension (Note 1). The proposals also required more frequent dissemination of prices and NAVs.

All respondents supported the proposals and the SFC will adopt them in full.

"The proposals are in line with our commitment to continually update our standards and practices," said Mr Ashley Alder, the SFC’s Chief Executive Officer.

Subject to a six-month transitional period for existing public funds, the amendments will become effective once they are gazetted.

Notes:

On 24 June 2014, the SFC issued the Consultation Paper on the proposals to amend publication requirements relating to offer and redemption prices or net asset value, and notices of dealing suspension under the Code on Unit Trusts and Mutual Funds. The consultation period ended on 23 July 2014.