On September 30, 2024, the Securities and Futures Commission ("SFC") published updated codes and guidelines in connection with the implementation of the new Type 13 regulated activity ("Type 13 RA") regime governing public fund depositaries, which came into effect on October 2, 2024. If you'd like more information about public fund depositaries or SFC authorised collective investment schemes ("CIS") operating in Hong Kong, please contact one of our Fund lawyers.
To facilitate the transition, the SFC granted Type 13 RA licences or registrations to 19 depositaries that are part of major banking or insurance groups operating in Hong Kong, together with over 300 of their staff members, on October 2, 2024, having processed their applications in advance of the launch date.
Under the new regime, the depositary of an SFC authorised collective investment schemes ("CIS") operating in Hong Kong is required to be licensed by or registered with the SFC to conduct Type 13 RA.
Type 12 RA Licenses
The new Type 13 RA regime forms a vital part of the SFC's strategy to enhance the regulation of CIS and investor protection and at the same time aims to align Hong Kong's requirements with international practice, so as to strengthen Hong Kong's position as an international asset and wealth management hub.
Depositaries licensed or registered for Type 13 RA must comply with applicable conduct and regulatory requirements, similar to those that apply to licensed corporations and registered institutions for other regulated activities.
In addition, there are specific additional requirements for Type 13 RA which are set out in Schedule 11 of the updated Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
Originally published on www.timothyloh.com, Jan 7, 2025
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