Regulatory requirements for Fund Managers on the increase in Asia

To help Fund Managers and Distributors fulfil their obligations under the new rules from the Hong Kong SFC, FE fundinfo is currently collecting this data from Fund Managers and supporting them in disseminating their regulatory data and documents to Fund Distributors via data feeds to help them demonstrate suitability.

31 March 2020

In 2019, the Hong Kong Securities and Futures Commission (SFC), the body that regulates Hong Kong’s securities and futures markets, introduced new requirements for identifying Non Complex and Complex investment products, and tightened its guidelines for online distribution and advisory platforms.

For the investment fund industry, these regulatory changes require more data to be reported from the Fund Managers to the Fund Distributors than ever before.

In addition, due to the increased requirements for demonstrating investment suitability in the Asian fund market, the openfunds association, a non-for-profit initiative that has defined an efficient, cost-free and scalable fund data standard has, with support from the PWMA and HKIFA in Hong Kong, defined a set of datapoints to help the fund industry standardise data for investor suitability in the Hong Kong market.

A flowchart illustrating which fields need to be filled in based on registration status or share class can be found in this openfunds whitepaper.

To help Fund Managers and Distributors fulfil their obligations under the new rules, FE fundinfo is currently collecting this data from Fund Managers and supporting them in disseminating their regulatory data and documents to Fund Distributors via data feeds to help them demonstrate suitability.

With our Document and Data Dissemination services, Fund Managers can ensure that key regulatory data is disseminated to their distribution partners efficiently. This helps Fund Distributors to make the right decisions for their investors and, as has been shown with regulatory data in other markets, the standardisation will help Fund managers scale the provision of the data as required.

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