The Dutch Authority for the Financial Markets (AFM) announced earlier today that it has signed a Memorandum of Understanding on Mutual Recognition of Funds (MoU) with the Hong Kong Securities and Futures Commission (SFC).
Dutch Undertakings for Collective Investment in Transferable Securities (UCITS) and Hong Kong Collective Investment Schemes (CIS) will now be available for distribution in each other’s market.
To top it up, a streamlined approach to the authorization of funds also applies where Dutch fund managers have been appointed as managers of other European Union UCITS that qualify under the SFC recognised jurisdiction schemes regime.
Mr Gerben Everts, Board Member of the AFM, commented on the news:
This newly established bridge between the Netherlands and Hong Kong constitutes an important stepping stone for the Dutch asset management industry seeking to develop activities in Asia. It leads to offering investors greater choice and diversification in their investments. We look forward to the opportunities this agreement will bring to our market, as well as to the enhanced cooperation between the AFM and the SFC. Together we will ensure that our industry players operate in a clear and robust supervisory framework and that investors receive proper protection.
This new framework with the AFM will open up opportunities for the asset management industries in both markets and provide investors in Hong Kong and the Netherlands with more investment choices. We will continue to expand the mutual recognition of funds arrangements with other jurisdictions as part of the SFC’s commitment to develop Hong Kong into an international asset management centre,’ added Mr Ashley Alder, the SFC’s Chief Executive Officer.