Hong Kong’s Securities and Futures Commission (SFC) has introduced new initiatives to further enhance the authorization process for new fund applications (Revamped Process) and for new mandatory provident funds (MPF) and pooled retirement funds (PRF).
The new initiatives will be executed on 9 November 2015 for a six-month pilot period after which refinements may be made before the initiatives will be adopted as policy.
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As part of the revamped process, new fund applications will be divided into two streams, namely Standard Applications and Non-standard Applications to promote fund providers’ self-compliance as well as to cut the overall processing time.
SFC said that Standard Applications will be fast-tracked with an aim that SFC authorization will be granted on average between one to two months from the take-up date of the applications, while Non-standard Applications will be processed under an enhanced process with an aim that SFC authorization will be given on average within two to three months from the take-up date of the applications.
Additionally, SFC will apply a six-month application lapse policy for new MPF and PRF products seeking SFC authorization.
The regulator has taken advice from a technical working group consisting of industry stakeholders to create a set of minimum disclosure requirements for offering documents and compiling a streamlined new information checklist.
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By GlobalDataSFC executive director of investment products Julia Leung said: "An authorization process that is more efficient and focuses more on key risks can meet the fund providers’ wish to reduce the ‘time to market’ of their funds for public offering.
"To achieve this, we need applicants to provide proper and quality submissions at the time of application and throughout the application process in a timely manner," she added.
