How to do it yourself

Author: | Published: 1 Aug 2007

Hong Kong regulatory requirements have been problematic for many hedge fund managers intent on establishing operations in Hong Kong. These problems have often arisen because the Hong Kong Securities and Futures Commission (SFC) has insisted on maintaining certain regulatory standards for managers applying for a licence to carry on the regulated activity of asset management.

However many hedge fund managers might not need an asset management licence. Hedge fund managers often assume that, because they are in the business of asset management, they are required under the Hong Kong Securities and Futures Ordinance (SFO) to obtain an asset management licence, but this is not necessarily the case.

Naturally, a hedge fund manager who is not required to apply for an asset management licence might find it easier to establish its operations in Hong Kong.

Regulatory framework Under the SFO, the regulated activity of asset management means real estate investment scheme management,...