Hong Kong - Revised Fund Manager Code Of Conduct Now In Effect.
Legal News & Analysis - Asia Pacific - Hong Kong - Regulatory & Compliance
23 November, 2018
The SFC’s revised Fund Manager Code of Conduct (FMCC) came into effect on 17 November 2018. By this date, any SFC-licensed fund manager responsible for the overall operation of a fund (ROOF) should have completed review and enhancement of the fund’s offering and constitutive documents to ensure that they meet the new requirements.
If amendments to the fund’s offering documents are still in progress, the fund manager should consider disclosing the relevant information to investors via other means such as making it available upon request at the offices of the fund manager or from the fund manager’s website. Investors should be notified as soon as possible the means by which they can obtain such information.
Disclosure via separate documents
If a fund manager elects to provide enhanced disclosures required by the new FMCC via separate documents distributed to investors, rather than amending a fund’s offering document, it would be prudent for the fund manager to obtain the investors’ acknowledgement of receipt of such documents, and to keep a record of the disclosures and the acknowledgements.
A fund manager that is ROOF is required under the revised FMCC to exercise due skill, care and diligence in the selection, appointment and ongoing monitoring of the custodian and other service providers. If the fund manager has not already done so, it should review its arrangements with the custodian and other service providers to ensure the manager is satisfied that it will be provided with all relevant documents and information relating to the services of the custodian and other service providers on an ongoing basis.
The revamped FMCC also imposes requirements on discretionary managed accounts managed by the fund manager and requires the fund manager to adopt various policies and procedures.
Further information on the revamped FMCC is available in our previous publications:
- Our article dated 12 December 2017 on the consultation conclusions
- Our articles dated 21 May 2018 and 27 August 2018 on what needs to be done
- Our article dated 19 September 2018 on the policies and procedures required under the FMCC
For further information, please contact:
Siew Tin Tee , Deacons