What is the authorisation or authorization of funds procedure? What are the main requirements for investment fund managers and managers in your country? A non-retail fund manager in Hong Kong must be authorized by the CFS to carry out Type 9 regulated assets in asset management and is therefore subject to CFS regulation in its non-retail fund management activities. Non-retail funds that are not managed in Hong Kong are not subject to specific CFS requirements, with the exception of restrictions on securities offerings and the requirement for individuals active in the marketing of non-retail funds to hold a CFS licence to carry out regulated Type 1 activities in securities trading. Yes, yes. Fund management is a regulated Type 9 asset management activity and, as such, fund managers must have a CFS-approved licence before transactions can be carried out in Hong Kong. The prior agreement of the CFS is necessary before becoming a key shareholder in a licensed company. Hong Kong has, effective April 1, 2019, a new profit exemption regime, which essentially provides for a Hong Kong income tax exemption for any vehicle corresponding to the IRO definition of “fund” (which corresponds to the definition of the collective investment scheme in the SFO) for “qualifying transactions” and “qualifying assets.” In addition, the exemption from these profits requires that qualifying transactions be carried out or arranged for exemption through a “determined person”, i.e. a company licensed or registered for certain regulated activities under the SFO and which would include the licensed hong Kong director. The English High Court found that it was an ILE. It is particularly important for the Court of Justice to recognise that a scheme can be an IEC, even if not all concerned participants have transferred day-to-day control of the management of their investments to the scheme`s operators. Non-market selling funds are primarily subject to the SFO with respect to securities offerings (including broadly defined forms of collective investment) in Hong Kong or the Hong Kong market, including applicable requirements for offers to professional investors.
Individuals who offer investment funds, including retail funds, must obtain a licence from the CFS for the Type 1 regulated activity in securities trading, unless there is a corresponding exemption.