HK SFC Authorization for Simple Funds


On Oct. 21, HK SFC launched expedited simple fund applications.


  • HK SFC announced launch of Fund authorisation simple track (FASTrack) to expedite processing of simple fund applications, aiming to grant same within 15 business days.
  • It also issued updated FAQ, guide on practices and procedures, information checklist regarding application process for authorization of unit trusts and mutual funds.
  • Background and Rationale
  • Current processing time for standard/non-standard applications is 1.5/2.5 months.
  • Initiative aims to enhance Hong Kong's competitiveness as asset management hub.
  • Eligibility Criteria
  • Fund types eligible for FASTrack include equity, bond and mixed funds, as well as ETFs/unlisted index funds tracking indices used by existing HK SFC-authorized funds.
  • Plus, other funds as specified; fund must not be derivative fund or have novel features, management firm must be located in mutual recognition of funds (MRF) jurisdiction or other prescribed acceptable jurisdiction; investment delegates must fulfill obligations.
  • Effectiveness
  • New process takes effect Nov. 4, SFC to monitor operation in pilot until May 4, 2025.
  • Oct. 2024 Presentation Slides
  • On Oct. 25, 2024, HK SFC issued presentation slides regarding the launch of FASTrack.

Regulators HK SFC
Entity Types Fiduciary; IA; Inv Co
Reference Gd 10/25/2024; PR, FAQ, Gd, Cir 10/21/2024
Functions Compliance; Financial; Legal; Operations; Registration/Licensing
Countries Hong Kong; Cross-Border
Category
State
Products ETFs; Fund Mgt; Mutual Funds; Securities
Regions AP
Rule Type Final
Rule Date 10/21/2024
Effective Date 11/4/2024
Rule Id 230636
Linked to N/A
Reg. Last Update 10/25/2024
Report Section International

Last substantive update on 10/31/2024