On 25 June 2010, the Securities and Futures Commission of Hong Kong (the SFC) published the new SFC handbook (the Handbook), which came into immediate effect. The Handbook was one of the introductions suggested in the Consultation Conclusions on Proposals to Enhance Protection for the Investing Public, published on 28 May 2010. The Handbook includes revised product codes for unit trusts and mutual funds and for investment-linked assurance schemes in addition to a new product code for unlisted structured investment products.

With immediate effect, applications to the SFC for fund and investment-linked assurance scheme authorisation will need to comply with the revised Code on Unit Trusts and Mutual Funds and the revised Code of Investment-linked Assurance Schemes respectively. However, for existing SFC authorised funds and investment-linked assurance schemes, revised parts of the respective codes will either not need to be implemented or require implementation over a 12 month transitional period. In respect of SFC authorised funds only, certain revised sections of the Code on Unit Trusts and Mutual Funds may be implemented at the discretion of the fund manager at a later stage.

The new Code on Unlisted Structured Investment Products (the SIP Code) will also take effect as of 25 June 2010. The SIP Code immediately applies to an application to renew an authorisation that existed before 25 June 2010 and all applications in respect of which authorisations had not been granted as at 25 June 2010. There are, however, a number of transitional arrangements in respect of unlisted structured investment product offering document(s) or advertisement(s) that were authorised before 25 June 2010.

For more information see the SFC’s website by clicking here.