Retail Investment Funds in Hong Kong

Registering a RIF in HKSAR requires indepth understanding of the regulatory framework in this jurisdiction. Operation of RIFs is regulated by the OFC Code, while more specific rules & regulations are laid forth in the OFC rules. Individuals seeking to get an investment license in HKSAR should keep in mind that they can do so from other jurisdictions.

Trying to choose a proper legal form for investment projects in Hong Kong S.A.R.? Need legal advice on investment funds in HKSAR? IncFine can help you 

Licensing of RIFs in HKSAR

Individuals seeking to open a RIF in HKSAR are required to apply for permission with the SFC. 

Thinking of establishing an investment company in HKSAR? Seeking to obtain an investment license in HKSAR? We can help you with that & much more.

The marketing of RIFs (open-ended & closed-ended ones) must be done in accordance with specific regulatory framework. Hence, only holders of an SFC license that authorizes operations with Type 1 securities can engage in it. When offering any of their fund’s products, licensed individuals must additionally meet other requirements contained in the OFC Code.

Requirements on Managers & Operators of RIFs

RIF managers are required to abide by the rules & regulations contained in the UT Code. In particular, they are expected to:

• focus primarily on managing their funds
• have sufficient funds (not less than ten million H.K. dollars)

It is expected that management companies must have at least 2 employees, each of whom should have a 5-year experience working with government funds. Managing assets requires obtaining a license authorizing asset management in HKSAR.

SFC-approved retailers are exempted from paying income tax in HKSAR. Investors aren’t taxed on dividends or capital gains, either.

RIF’s Assets

Only specially appointed trustees or custodians, i.e. banking establishments or trusts based outside HKSAR & endorsed by the SFC, are allowed to hold an RIF’s assets . 

Interested in setting up a RIF in HKSAR? Need comprehensive legal advice on investing in HKSAR? Let IncFine handle that for you.

Managing RIFs in HKSAR

As soon as a RIF is endorsed by the SFC, it must comply with the regulator’s reporting requirements. Essential information on a RIF needs to be updated once a year.

Considering ordering a legal audit of a RIF in HKSAR? IncFine is at your service

Changes in RIFs needn’t be approved by the SFC. Individuals interested in putting money in such funds must be notified of the changes asap so they could adjust their plans accordingly. No approval is needed for updating & reissuing a document containing proposed changes, providing its format & content matches the previously approved version. The document must be submitted to the SFC no later than 7 days from the date of issue.

RIFs must publish 2 financial statements per year & submit them to the SFC.