French and Hong Kong financial regulators have agreed to allow funds to be sold in each others’ countries.
A memorandum of understanding means French Ucits funds and Hong Kong public funds will be available to retail investors in each other’s markets through a streamlined authorisation process.
France’s Autorité des Marchés Financiers (AMF) and the Securities and Futures Commission (SFC) have agreed the terms under the Mutual Recognition of Funds scheme.
It is the first agreement between a member of the European Union and Hong Kong, the AMF said.
Switzerland already has an agreement with Hong Kong and Harvest Global Investments recently became the first manager to benefit from it.
Eligible French and Hong Kong funds currently include equity funds, bond funds and mixed funds.
Gérard Rameix, chairman of the AMF, said: “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 centre and demonstrates that there is a demand from one of the leading markets in Asia for French asset management companies and products.”
Ashley Alder, chief executive officer of the SFC, said: “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.”
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