France, Hong Kong regs sign agreement for mutual recognition of funds
The Autorité des Marchés Financiers (AMF) and the Securities and Futures Commission (SFC) have signed a memorandum of understanding (MoU) on France-Hong Kong Mutual Recognition of Funds (MRF).
The MRF scheme will enable eligible French Ucits funds and Hong Kong public funds to be distributed to retail investors in each other’s market through a streamlined authorisation process.
The agreement also contains a dialogue and regulatory cooperation mechanism through which AMF and SFC will fulfill their respective supervisory and regulatory mandates.
AMF’s chairman Gérard Rameix commented: “This newly established bridge between France and Hong Kong constitutes an important breakthrough for the French asset management industry seeking to develop activities internationally. It reflects the attractiveness of Paris as a financial center and demonstrates that there is a demand from one of the leading markets in Asia for French asset management companies and products.
“We look forward to the opportunities this agreement will bring to our market, as well as to the enhanced cooperation between the AMF and the SFC to ensure that our industry players operate in a clear and robust supervisory framework and that our investors receive proper protection.”
“Promoting the development of Hong Kong’s asset management industry is one of our strategic objectives. This new cooperation framework is an important milestone for Hong Kong’s continuous development as an international asset management centre as it opens up the opportunity for Hong Kong funds to be sold in one of the leading markets in the European Union. We look forward to working with the AMF with our strengthened regulatory ties under the MoU,” added Ashley Alder, SFC’s chief executive officer.