The program gives Hong Kong fund managers access to a large pool of international investors. Conversely, investors from France, Switzerland, the United Kingdom, Luxembourg and the Netherlands can increase their exposure to Hong Kong markets and benefit from the expertise of local fund managers. For European asset managers, the MRF complements the UCITs framework. After signing the deal, the two sides will change the rules to facilitate cross-border investments by investment funds, Nataya Niyamanusorn, the SEC`s deputy general secretary, said on the sidelines of a meeting with regulators in Hong Kong. The Securities and Exchange Commission (SEC) will sign a memorandum of understanding with its Hong Kong counterpart by the second quarter on the accelerated authorization of cross-border investments in investment funds. At least 10 Thai investment funds are placing money in China. Meanwhile, Thai Stock Exchange Chairman Pakorn Peetathawatchai said the deal will be a blessing for Thai investors as they will be able to access the Chinese stock market more easily through the Shanghai-Hong Kong Stock Connect program. To maximize the chances of regulatory breakthroughs such as Hong Kong Mutual Recognition of Funds with participating countries, you need to act quickly in jurisdictions that may not be familiar to the fund manager. It therefore requires full, smooth and trustworthy support. The SFC has entered into MRF agreements with Chinese and foreign financial supervisory authorities to allow approved funds approved by the financial supervisory authorities authorized in these legal systems or registered with these legal systems to carry out a simplified procedure for the purpose of authorizing the public offering in Hong Kong and vice versa.
The MRF is a bilateral regulatory framework that allows investment funds from two markets to be marketed in each market. Monetary authorities in Hong Kong and Thailand are moving to the next phase of experimenting with a blockchain-based cross-border payment network to facilitate the settlement of transactions, after completing a study indicating that the Central Bank`s digital currency (CBDC) could significantly reduce transaction costs. A Memorandum of Understanding (MoU) was signed between Hong Kong (HK) and the following European countries: Switzerland, France, the United Kingdom, Luxembourg and the Netherlands; and the following ACPA countries: China, Australia, Malaysia, Taiwan and Thailand. Each mrf system specifies the type of fund that can be adapted from one country to another, the suitability of the fund manager, investment restrictions, ongoing disclosure requirements, application procedures, etc. As a general rule, funds intended to be transferred to another country (host jurisdiction) must be authorized for retail trade in the country of origin (jurisdiction of origin). Finance Minister Uttama Savanayana said Hong Kong authorities support cross-border investments by simpler investment funds. SFC makes the list of circulars on each MRF available on its website www.sfc.hk/web/EN/regulatory-functions/products/list-of-publicly-offered-investment-products/mutual-recognition-of-funds-arrangements.html The current registration process for cross-border investments by investment funds is a long-term ordeal, she said. BNP Paribas Securities Services may provide services in these markets covered by the MRFs.
Bnp Paribas Sercurities Services acts in Switzerland as a fund representative and local paying agent, as well as as a contact point for FINMA and follow-up of distributors; in Hong Kong, through experienced trust and fund management services; in France, as a leading bank in Europe, with the overall capacity to support cross-border distribution services. Mutual Recognition of Funds (MRF) is an initiative of the Hong Kong Securities and Futures Commission (SFC) to promote the city as an international asset management centre. Get access immediately by purchasing a 12-month subscription or sign up again today to get access to a free trial version of 5 articles: A proof-of-concept (DLT) based on distributed ledger (PoC) technology has been developed with 10 participating banks from both countries, Hong Kong Monetary Authority officials said at a Hong Kong equity supervisory authority will also provide support for green bonds, issued in Thailand to be listed on the Hong Kong market by relaxing listing rules. That is what Mr Pakorn said. .