UCITS: Mutual Recognition Luxembourg/Hong Kong Funds

On 15 January 2019, the Hong Kong Securities and Futures Commission ("SFC") and the CSSF signed a Memorandum of Understanding ("MoU") concerning mutual recognition of investment funds. The conditions applicable to Hong Kong funds and their management companies wishing to access the Luxembourg retail market are provided in a CSSF document ("CSSF streamlining requirements and process for mutual recognition of Hong Kong funds") dated 15 January 2019.

On the same date, the SFC published a circular ("SFC Circular") which sets out the additional requirements to be fulfilled by eligible Luxembourg UCITS funds and eligible UCITS management companies.

The SFC Circular and the CSSF streamlining requirements and process for mutual recognition of Hong Kong funds outline the general principles which apply in the case of mutual recognition. They outline the eligibility conditions and the ongoing requirements (e.g. operational requirements, disclosure and reporting requirements) which must be complied with in order for Luxembourg UCITS and Hong Kong funds to access the Luxembourg retail market and/or the Hong Kong retail market, as applicable.

The following types of Luxembourg UCITS funds are eligible:

equity funds, bond funds, mixed funds; or feeder funds of equity, bond or mixed funds. As part of the Hong Kong market access requirements, eligible...

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