SFC and CSSF sign MoU on Luxembourg-Hong Kong mutual recognition of funds
Press release 19/04
The Securities and Futures Commission (SFC) and the Commission de Surveillance du Secteur Financier (CSSF) have entered into a Memorandum of Understanding (MoU) on Mutual Recognition of Funds (MRF), which will allow eligible Hong Kong public funds and Luxembourg UCITS funds to be distributed in each other’s market through a streamlined process.
The MoU also establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of eligible Hong Kong public funds and Luxembourg UCITS funds.
“The new cooperation framework expands our MRF network following Mainland China, Switzerland, France and United Kingdom. It further strengthens our ties and regulatory cooperation with Luxembourg, a major hub for fund domicile,” said Mr Ashley Alder, the SFC’s Chief Executive Officer.
“Hong Kong and Luxembourg have a long history of cooperation in the area of mutual fund distribution.The new memorandum of understanding is an important step for the mutual recognition of investments funds in our respective jurisdictions, and demonstrates the excellent cooperation between our two supervisory authorities,” said Mr Claude Marx, the Director General of the Luxembourg CSSF.
Further details of the mutual recognition of funds scheme are set out in the “SFC circular” and the “CSSF streamlining requirements and process for mutual recognition of Hong Kong funds” issued today.