The Securities and Futures Commission in Hong Kong and France's Autorité des Marchés Financiers have signed a Memorandum of Understanding on France-Hong Kong Mutual Recognition of Funds.
Since the U.K.'s Brexit vote both Paris and Frankfurt have been scurrying around financial hubs in an effort to leverage on the uncertainty of London as Europe's leading financial centre.
The new agreement is another small win for the French and will allow eligible Hong Kong public funds and French UCITS funds to be distributed to retail investors in each other’s market through a streamlined authorisation process.
A First For Both
The memorandum is the first agreement between Hong Kong and a member of the European Union which establishes the regulatory framework for distribution of eligible Hong Kong and French funds, which currently include general equity funds, bond funds and mixed funds.
There will also be a regular dialogue and regulatory cooperation thus enabling the Securities and Futures Commission (SFC) and the Autorité des Marchés Financiers (AMF) to fulfil their respective supervisory and regulatory mandates.
«Promoting the development of Hong Kong’s asset management industry is one of our strategic objectives. This new cooperation framework is an important milestone for Hong Kong’s continuous development as an international asset management centre,» said Ashley Alder, the SFC’s Chief Executive Officer.
