The Securities and Futures (Amendment) Ordinance 2016 (“the Amendment Ordinance”) introduces a new form of company called “Open-ended Fund Company” (“OFC”) in Hong Kong. The Amendment Ordinance has commenced operation on 30 July 2018.
The new OFC structure will allow investment funds to be set up in the form of a company, but with the flexibility for investors to trade the funds through the creation and cancellation of shares. This additional choice would help diversify Hong Kong’s fund domiciliation platform and build up our fund manufacturing capabilities, which in turn would further develop Hong Kong’s asset management industry.
Under the OFC regime, the Securities and Futures Commission (SFC), being the principal regulator, is responsible for the registration and regulation of OFCs. The Registrar of Companies oversees the incorporation and statutory corporate filings of OFCs and the Official Receiver the winding-up procedures.