Hong Kong To Expand Fund Industry

by Mary Swire, Tax-News.com, Hong Kong

06 July 2007

Hong Kong and Mainland authorities are working together to seize business opportunities to expand the city's fund management industry, according to Hong Kong's Secretary for Financial Services and the Treasury, Professor KC Chan.

Chan told the Legislative Council on Thursday that a host of measures have been taken to bolster Hong Kong's fund management industry, such as seizing Mainland business opportunities, human resources development, tax breaks, enhanced investor education and facilitating market growth.

He added that the measures come in the wake of Securities & Futures Commission initiatives launched last month to streamline licensing procedures for overseas fund managers. Under these changes, firms that are already licensed or registered in the US or UK as investment managers or advisers, and which only serve professional investors and have good compliance records, will benefit from an expedited licensing process. Additionally, persons nominated to be the Responsible Officers (ROs) of hedge fund managers, who fulfil the necessary criteria, would be exempted from the local regulatory examination. Also, A broader range of relevant past industry experience will be recognised as satisfying the competence requirements for ROs.

"With the implementation of [these] measures, coupled with our fundamental strengths, including the rule of law, free flow of capital and information, simple and low tax regime, world-class infrastructure and a well established regulatory system, our fund management business has continued to flourish in the past years," Chan observed.

"Looking ahead, the Government and our financial regulators will continue our efforts in promoting the development of hedge funds in Hong Kong to maintain our lead as a hedge fund centre and our position as an international financial centre," he added.

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