SFC and AFM sign MoU on Netherlands-Hong Kong Mutual Recognition of Funds
The Securities and Futures Commission (SFC) and the Dutch Authority for the Financial Markets (AFM) have entered into a Memorandum of Understanding on Mutual Recognition of Funds (MoU). The MoU will allow eligible Hong Kong Collective Investment Schemes (CIS) and Dutch Undertakings for Collective Investment in Transferable Securities (UCITS) to be distributed in each other’s market through a streamlined process.
The MoU establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of eligible Hong Kong CIS and Dutch UCITS. In addition, a streamlined approach to the authorization of funds also applies where Dutch fund managers have been appointed as managers of other European Union UCITS that qualify under the SFC recognised jurisdiction schemes regime.
"This new framework with the AFM will open up opportunities for the asset management industries in both markets and provide investors in Hong Kong and the Netherlands with more investment choices. We will continue to expand the mutual recognition of funds arrangements with other jurisdictions as part of the SFC’s commitment to develop Hong Kong into an international asset management centre," said Mr Ashley Alder, the SFC’s Chief Executive Officer.
"This newly established bridge between the Netherlands and Hong Kong constitutes an important stepping stone for the Dutch asset management industry seeking to develop activities in Asia. It leads to offering investors greater choice and diversification in their investments. We look forward to the opportunities this agreement will bring to our market, as well as to the enhanced cooperation between the AFM and the SFC. Together we will ensure that our industry players operate in a clear and robust supervisory framework and that investors receive proper protection," said Mr Gerben Everts, Board Member of the AFM.
Further details of the mutual recognition of funds scheme are set out in the “SFC circular” and the “AFM requirements and process for mutual recognition of Hong Kong Funds” issued today.