As part of the Hong Kong government's plans to strengthen the city's position as an international centre for both fund management activities and investment fund domiciliation, the framework for a new open-ended fund company (OFC) structure will be effective from 30 July 2018. The key legislation and regulations that establish the OFC regime include:
- the Securities and Futures (Amendment) 2016 Ordinance1 (Amendment Ordinance);
- the Securities and Futures (Open-ended Fund Companies) Rules (OFC Rules);2 and
- the Code on Open-Ended Fund Companies (OFC Code).
In this alert:
- The OFC Framework
- Essential Features
- Key Operators
- Publicly offered OFCs
- Privately offered OFCs
- Tax Position
- The Future Vehicle of Choice?
1 The Securities and Futures (Amendment) Ordinance 2016 was gazetted on 10 June 2016 but has not yet been enacted.
2 Other than the OFC Rules, the subsidiary legislation comprises: (i) the Securities and Futures (Amendment) Ordinance 2016 (Commencement) Notice (Commencement Notice); and (ii) the Securities and Futures (Open-ended Fund Companies) (Fees) Regulation.