Oversight October 2018 - Mutual Recognition of Funds between the United Kingdom and Hong Kong

The Securities and Futures Commission of Hong Kong (SFC) and the Financial Conduct Authority of the United Kingdom (FCA) (each an Authority) signed the Memorandum of Understanding concerning Mutual Recognition of Covered Funds and Covered Management Companies and related Cooperation (MoU) on 08 October 2018. The MoU aims to enhance cooperation between the SFC and the FCA in relation to (i) certain “Covered Funds”, being undertakings for collective investments in transferable securities (UCITS) in the United Kingdom (UK) or collective investment schemes in Hong Kong which are seeking authorisation or recognition or are authorised or recognised to be offered on a cross-border basis, and (ii) their “Covered Management Companies”, being management companies in the UK or in Hong Kong that are authorised, licensed or registered by the relevant regulator to manage Covered Funds. Under the MoU, eligible UK Covered Funds and Hong Kong Covered Funds can be distributed in each other’s market through a streamlined process of authorisation or recognition.

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