News

Hong Kong trades fund rights with Switzerland

Handshake contractRegulators have drawn up a plan to allow eligible Swiss funds to be sold in Hong Kong while eligible Hong Kong funds will enjoy the same treatment in Switzerland.

The memorandum of understanding was signed by the Securities and Futures Commission (SFC) of Hong Kong and the Swiss Financial Market Supervisory Authority (Finma).

"This agreement gives Swiss fund managers access to an important financial centre," said Thomas Bauer, chair of Finma's board of directors.

Europe-domiciled Ucits funds are already widely distributed in Hong Kong; however, because Switzerland is not part of the European Union, its funds are structured according to local Swiss regulations and are not eligible for the same passporting rights as Ucits funds.

The news comes as the Mutual Recognition of Funds scheme between Hong Kong and mainland China faces accusations it has stalled. Only six Hong Kong funds have been approved for distribution in mainland China and there have been no new approvals for months.

©2016 funds global asia

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