Mutual Recognition of Funds between Hong Kong and Thailand (“HK-TH MRF") aims to facilitate cross-border offerings of funds between Hong Kong SAR and Thailand with a view to enriching the types of financial products offered and deepening the mutual access between two financial markets. The HK-TH MRF marks an important milestone in the bilateral cooperation between Hong Kong SAR and Thailand, following the Memorandum of Understanding on Strengthening Economic Relations between Hong Kong SAR and Thailand signed on the 29th November 2019.
Participating CIS operators under the HK-TH MRF will have to comply to the Memorandum of Understanding (MoU) between the Securities and Futures Commission of Hong Kong (SFC) and the Securities and Exchange Commission of Thailand (SEC) Concerning Mutual Recognition of Covered Funds and Covered Management Companies and related Cooperation (“MoU"). This MoU is the bilateral agreed framework combining rules and conditions for funds and CIS operators to meet the eligibility requirements under the HK-TH MRF.
Please click here for the MoU, Appendix B – I – SFC Circular, and AppendixB – II – SEC Circular.
About HK-TH MRF (infographics)
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Further Information on HK-TH MRF
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Regulatory Summary
Required documents for an approval of HK-TH MRF (for inbound only)
A CIS Operator must submit a completed Form 35 – HK-TH MRF in hard copies accompanied by all supporting documentation as specified in Form 35 – HK-TH MRF to the SEC Thailand for the Hong Kong Covered Fund.
Remark: Form 69 – CIS full forms an integral part of Form 35 – HK-TH MRF. CIS Operator is required to complete Form 69 – CIS full and submit it as part of the required documents for an approval of the Hong Kong Covered Fund.
HK-TH MRF Fact Sheet Template (for Inbound only)
Fact sheet of HK-TH MRF to be disclosed to investors in Thailand shall be prepared in accordance with the format and contents provided herein. Please click here to view the fact sheet template.
On-going requirements of CIS Operators (for Inbound only)
The followings are on-going requirements for CIS Operator who makes offerings of the Hong Kong Covered Fund in Thailand:
The CIS Operator is required to submit a hard copy of a completed Form 69 – CIS annually update to the SEC Thailand within 1 year after the effective date of the previously submitted registration statement, either Form 69 – CIS full or Form 69 – CIS annually update, as the case may be.
In the case where there is a material change to the information specified in the effective registration statement and such change has been notified and approved by Home Regulator, the CIS Operator is required to submit a hard copy of a completed Form 69 – CIS material update to the SEC Thailand within 10 days after Home Regulator approved such material change (excluding weekends/public holidays in Home Jurisdiction).
In addition, the CIS Operator is required to prepare sales report for the sale of units of the Hong Kong Covered Fund offered in Thailand. This report shall be lodged with the SEC Thailand within 45 days after the last official day of the year that such solicitations occurred.
List of Restricted Assets
Virtual assets, i.e. digital tokens (such as digital currencies, utility tokens, investment tokens, or security or asset-backed tokens) and any other virtual commodities, crypto assets, and other assets of essentially the same nature;
Loan participations;
Loan assignments;
Credit derivatives for non-hedging purposes i.e. protection seller CDS;
Please note that this is a non-exhaustive list of restricted assets. Hong Kong Covered Management Companies are encouraged to consult the SFC if in doubt on any issues. (As of October 2020)
Related Rules and Regulations
Inbound
Outbound
Circulars
The Notifications regarding HK-TH MRF specify that the regulations governing the ASEAN Collective Investment Schemes (ASEAN CIS) and the Asia Region Funds Passport (ARFP) shall also apply to HK-TH-MRF on the condition that they are not contradictory or inconsistent with the cooperative framework under HK-TH MRF. List of the Notifications related to ASEAN CIS and ARFP are as follows:
Inbound (ASEAN CIS & ARFP)
Outbound (ASEAN CIS & ARFP)
Related Forms
FAQs
List of approved HK-TH MRF Funds