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Recent Developments

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?
  • Conclusion

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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.
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