Regulatory deal with Hong Kong
Tony D'Aloisio
Fund managers and other Australian-based financial services companies operating in Hong Kong are likely to encounter slightly less red tape as a result of an agreement signed today by the Australian Securities and Investments Commission (ASIC) and the Hong Kong Securities and Futures Commission (HKSFC).
The agreement, a “declaration of mutual recognition” was described by ASIC as seeking to reduce regulatory duplication by allowing most funds registered in Australia available to retail investors in Hong Kong while making available to Australian investors similar funds authorised in Hong Kong.
The move was described by ASIC chairman Tony D’Aloisio and HKSFC’s Eddy Fong as being an important step towards international convergence of regulation.
To assist Australian funds to take advantage of the changed arrangements, the HKFSC has issued a set of practical guidelines, while ASIC has signalled that it will soon be issuing a class order with respect to Hong Kong authorised funds.
The signing of the agreement has been welcomed by the Investment and Financial Services Association with chief executive Richard Gilbert saying: “Mutual recognition of collective investment scheme offerings is a significant milestone towards strengthening regulatory ties and co-operation between Hong Kong and Australia.”
“IFSA is cognisant of the fact that Australia is the first country to achieve such status with Hong Kong and acknowledges the considerable efforts of ASIC, the SFC and their officers in securing this outcome,” he said.
“This regulatory recognition agreement is further evidence that Australia is internationally recognised as having a first rate financial regulatory regime.”
AUTHOR
Mike Taylor
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