Detailed knowledge of the regulation of RIF in the jurisdiction of HKSAR is crucial for registering one there. The OFC code controls the operation of Retail Investment Funds and provides rules and regulations. However, even investors from different jurisdictions can obtain an investment license in HKSAR.
COREDO is here to assist in case you are concerned with choosing the right form for investment projects in Hong Kong. Our legal specialists will also give you professional advice on investment funds.
RIF license in Hong Kong
The SFC gives out permission to individuals who require it to open a RIF in HKSAR.
If you are planning to obtain an investment license and establish an investment company in HKSAR, specialists from COREDO can help you with these procedures.
RIF marketing in Hong Kong
For both open- and close-ended RIFs the marketing is regulated by a special supervisory framework. The marketing engagement is only allowed for holders of an SFC license that gives permission for operations of Type 1 securities. Additionally, for being able to offer products created by a fund, there are other conditions of the SFC Code to fulfill.
Rules for managing and operating with RIFs
The managers of RIFs are expected to act according to the rules of UT Code. As an example, they must:
- Prioritize their funds’ management
- Have at least 10 000 000 H.K. dollars in funds.
The management company must have a minimum of two employees who have at least five years of experience working in government funds. To be allowed to manage assets in HKSAR it is necessary to get a license.
Taxes
Retailers approved by SFC do not need to pay tax on their income in HK neither on dividends or capital gains.
Assets of RIFs
The right to hold a RIF’s assets only have specially selected custodians or trustees like trusts or banking establishments approved by SFC even if not based in Hong Kong.
If you are interested in starting a RIF in HK and need advice on it, COREDO will be happy to assist.
RIFs’ management
When the SFC gives a RIF its approval, it needs to fulfill the reporting obligations stated by SFC, too. It is required to update the main information on RIF every year.
Every change that comes up must be ratified by the SFC. Those individuals who are planning to invest expect to be immediately notified in case of any changes about RIF so that they are able to modify their strategies. If an updated and a reissued document containing proposed changes has the same format and content as in the previous endorsed version, it does not need to be approved. The document is required to be provided to SFC within 7 days from the issue day.
RIFs are obliged to submit two financial statements every year to the SFC and publish them, as well.
Our lawyers in COREDO are prepared to offer a full legal audit on RIF in HK as well as provide you with legal advice on all stages of investment activity in Hong Kong.