The Securities and Futures Commission (SFC) announced today that it has signed a Memorandum of Understanding (MOU) with the Swiss Financial Market Supervisory Authority (FINMA) on Switzerland-Hong Kong Mutual Recognition of Funds and Asset Managers. This will enable eligible Swiss and Hong Kong public funds to be distributed in each other’s market through a streamlined vetting process.
Mutual Recognition of Funds
The MoU also establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of public funds.
SFC Chairman, Mr Carlson Tong, commented: “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 mutual recognition of funds scheme is expected to create new opportunities for the Swiss and Hong Kong asset management industries as well as providing investors in both markets with a broader selection of fund products.
Criteria
Swiss funds applying for SFC authorisation have to meet a number of eligibility requirements. These include that funds must be established, domiciled and managed in accordance with Swiss laws and regulations and that they have been defined and approved by FINMA as securities funds in accordance with Article 53 – 57 CISA for public offering in Switzerland.
Additionally, Hong Kong funds applying for FINMA approval must be SFC-authorised funds domiciled and managed in Hong Kong, as well as meeting FINMA’s requirements for Hong Kong funds.
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