Hong Kong fund managers have ventured out of the
territory’s strict internet financing regulations
to establish the city’s first fund-type
peer-lending platform - but low regulatory transparency has
In March 2015 the Court of Final Appeal (CFA)
ruled in favour of an exemption for promoters of
unauthorised collective investment schemes (CIS) from seeking
approval from the Securities and Futures Commission (SFC). It
had overturned a ruling by the Court of First Instance by
stating that only issuers of securities to the public are
required to seek the SFC’s approval, and that they
must state the intention in their advertisements.
But counsel advising Hong Kong-licensed money lender
Elephant Club on the deal argue that the lack of clarity over
peer-to-peer lending (P2P) regulations has made it difficult to
conduct due diligence on the lending aspect of the fund.
Specifically, counsel point to the challenge of...