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Consultation Paper on Proposals to Enhance Asset Management Regulation and Point-of-sale Transparency – Eversheds submits comments on behalf of the industry

  • Hong Kong
  • Financial services and markets regulation
  • Financial services - Asset managers and funds


The deadline to respond to the consultation paper (the “Consultation Paper”) published by the Securities and Futures Commission (the “SFC”) regarding proposed enhancements to asset management regulation and point-of-sale transparency, has now passed.

Eversheds hosted a thought-leadership breakfast efvent in early January to invite a selection of interested parties and stakeholders from asset management firms and financial institutions, compliance and service providers to debate the proposals and share knowledge and experiences relevant to the topics covered.

A wide variety of market participants attended the event, generously offering their time and wealth of experience to support industry development.

The Consultation Paper covered a broad range of topics affecting asset managers and investment fund stakeholders operating in Hong Kong, as well as intermediaries and third parties such as investment advisors. Key topics included enhancing pre-sale disclosure of complex investment features, such as leverage, or use of derivatives, as well as considering the scope of application of the existing codes and regulations applicable to fund and discretionary account managers. There was also a discrete section on independence in the financial advisor market, a topic which has been of regulatory interest internationally over the last few years. The topics instigated considerable debate in the industry, particularly those which raised concerns surrounding the knock-on effect from a taxation perspective of regulatory measures which might unwittingly “onshore” certain carefully constructed fund structures.

Eversheds Sutherland considers it to be imperative that regulators and tax and insurance authorities in Hong Kong work collaboratively to ensure that there are no unintended consequences incurred in the laudable pursuit of greater transparency, accountability, and investor protection in the asset management industry.

Eversheds Sutherland has submitted responses to the Consultation Paper to the SFC, drawing on the feedback provided on a no-names basis by firms during the thought leadership event. Firms who are interested in receiving a copy of the submission are invited to contact Paul Moloney, Head of Investment Funds at Eversheds Sutherland, at or Catriona Kellas, Associate, Registered Foreign Lawyer (England and Wales) at