Investment Management Agreement Hong Kong


Yes, yes. The marketing of investment funds is a type 1 regulated activity in securities trading and a licence issued by the CFS to conduct such a regulated activity is required. A licensee for a Type 9 regulated activity in asset management may market the funds under its management in the form of ancillary exemptions, provided there are no other exceptions under the appropriate conditions. The minimum content of an investment management agreement should include at least the following provisions: Under the “Securities and Futures” regulation published in 2016, which constitute the framework of open investment funds structured in the form of a business and, subject to the detailed rules and requirements of the OFC rules and the OFC code, non-retail funds to be incorporated as fund companies opened in Hong Kong are subject to prior approval by the CFS in registration process and must be subject to certain important manager requirements that meet the governance requirements of directors, administrators and other governance requirements. A list officer must be appointed and the parties involved must sign a rating agreement to ensure that existing regulatory requirements are met at all times. A foreign officer may not engage in any management activity in Hong Kong or actively market services to clients in Hong Kong without proper authorization by the CFS to conduct relevant regulated activities. Depending on the type of retail fund, certain investment restrictions and obligations apply under the UT code. The essential requirements apply primarily to “simple vanilla” funds (equity funds or debt funds) that cover the distribution of investments and diversification limits, restrictions on certain types of instruments or assets, and restrictions on short selling and credit. Other requirements apply to specialized systems such as money or treasury funds, unlisted index funds, hedge funds, structured funds, closed funds or funds that invest heavily in derivatives. The appropriate structure or agreement may depend on the applicable license of the trustee or intermediary, the retention of the client`s assets and the proposed investment strategy. A non-retail fund manager in Hong Kong must be authorized by the CFS to implement the regulated active activity of the Type 9 asset manager and is therefore subject to CFS regulations in its non-retail fund management activities, including applicable requirements of the Code of Conduct and the FMCC.

What is the authorisation or authorization of funds procedure? What are the main requirements for investment fund managers and managers in your country? Leaders may be based in Hong Kong or other jurisdictions. If based in Hong Kong, the manager should be licensed for a regulated active activity of the Type 9 asset manager. However, fund managers are not limited to Hong Kong fund managers, as those regulated in legal systems within a list of acceptable inspection systems (AIR) may be approved by the CFS as retail fund managers or as delegates for the discretionary management of CFS-eligible retail funds. AIR`s current list includes, among others, Australia, France, Ireland, Luxembourg, the United Kingdom and the United States. Discretionary investment management functions may only be delegated to non-AIR companies after prior authorization from the CFS. JRSs are already considered, on the basis of prior authorization in a recognized region, to be consistent with the content of certain provisions of the UT code, while the systems would be subject, during the authorization process, to a specific verification by the SFC in order to meet certain requirements of the UT code, including the management company and the agent or custodian of the RJS.

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