This article is from the Australian Property Journal archive
THE Australian Securities and Investments Commission and its counter part the Hong Kong Securities and Futures Commission have signed a declaration to facilitate the sale of retail funds to investors in each other's market.
The declaration seeks to reduce regulatory duplication by allowing most funds registered in Australia for offer to retail investors in Hong Kong whilst making available to Australian investors similar funds authorised in Hong Kong.
ASIC’s chairman Tony D’Aloisio said this is an important milestone towards international convergence of regulation and stronger regulatory ties and co-operation between the SFC and ASIC.
“Not only does it present exciting marketing opportunities for our respective funds management industry seeking investment flows from the counterpart jurisdiction, it also gives more choices to the Australian and Hong Kong retail public,” he added.
SFC’s chairman Eddy Fong said as the first such agreement that the SFC reached with an overseas securities regulator, this declaration shall reinforce Hong Kong’s status as an international fund offering venue.
“But more importantly, it highlights the growing importance of the relationship between Hong Kong and Australia in terms of the similarity in regulatory regime and the nature of our retail markets,” he said.
To facilitate Australian funds to take advantage of mutual recognition, the SFC has issued a set of practical guidelines for the industry. Similarly, ASIC will issue a class order shortly providing Hong Kong authorised funds with a ‘conditional relief’ from registration in Australia and from certain licensing, product disclosure and fund-raising requirements.
Australian Property Journal
