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The Securities and Futures Commission (SFC) and the Swiss Financial Market Supervisory Authority (FINMA) have signed a Memorandum of Understanding on Switzerland-Hong Kong Mutual Recognition of Funds and Asset Managers (MoU), which will allow eligible Swiss and Hong Kong public funds to be distributed in each other’s market through a streamlined vetting process.
The MoU also established a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of public funds.
"This pioneering initiative, whereby home-grown Hong Kong funds – for the first time – gain direct access to the investing public in a European market, is a testament to Hong Kong’s commitment to develop the city into an international asset management centre," the SFC’s Chairman, Mr Carlson Tong said.
"This mutual recognition of funds scheme will not only create new opportunities for the Swiss and Hong Kong asset management industries, but also provide investors in both markets with a broader selection of fund products," the SFC’s Chief Executive Officer, Mr Ashley Alder added.
Further details of the mutual recognition of funds scheme are set out in the SFC Circular issued today (Note 1).
Notes:
1. Swiss funds applying for SFC authorization must meet the following eligibility requirements:
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- the fund is established, domiciled and managed in accordance with Swiss laws and regulations and its constitutive documents;
- the fund has been defined and approved by FINMA as securities funds in accordance with Article 53 – 57 CISA for public offering in Switzerland; and
- the fund falls within one or more than one of the eligible fund types as set out below and in more detail in the SFC Circular.
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General equity funds, bond funds and mixed funds
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Feeder funds
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Funds of funds or unit portfolio management funds
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Money market / cash management funds
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Index funds
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Structured funds
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Funds that invest in financial derivative instruments
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Index tracking exchange traded funds
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2. Hong Kong funds applying for FINMA approval must be SFC-authorized funds domiciled and managed in Hong Kong and must meet the FINMA Requirements for Hong Kong funds.
