As the SEC and SFC have developed the bilateral cooperative framework regarding HK-TH MRF to facilitate cross-border offerings of funds between Hong Kong and Thailand, this by extension will help to open up new business opportunities for asset management companies to expand investor bases and enrich the types of financial products offered to investors in both markets. In addition, this joint effort will strengthen capital market cooperation in accordance with the Memorandum of Understanding concerning Strengthening Economic Relation between the Government of the Kingdom of Thailand and Hong Kong Special Administrative Region of the People's Republic of China signed by both Governments in 2019.

Subsequently, the SEC is seeking public comments on three draft notifications in order to extend the regulations related to inbound and outbound fund offerings to cover cross-border offerings of funds under the HK-TH MRF scheme as well. In essence, a mutual fund approved for establishment and public offerings from the home country will be eligible for public offerings in the host country under the HK-TH MRF if the mutual fund complies with the relevant qualification requirements of the home country as well as the additional requirements specified in the MoU and such mutual fund shall be offered through local distributor(s) approved by the host country. In this regard, the supervisory principles of the ASEAN Collective Investment Schemes (ASEAN CIS) and the Asia Region Funds Passport (ARFP) specified in the existing relevant regulations would apply to the cross-border offerings of funds under the HK-TH MRF scheme.  

The consultation paper on the drafted regulations regarding HK-TH MRF is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=692. Stakeholders and interested parties are welcome to give comments and suggestions via the website or email to slil@sec.or.th or sireetho@sec.or.th. The public hearing ends on 5 March 2021. 

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