The agreement is the first between Hong Kong and a member of the European Union that establishes a regulatory framework for the mutual distribution of eligible funds. It comes only a few months after the launch of a similar scheme between the SFC and the Swiss financial authorities, and underscores the growing opportunities for Hong Kong asset managers in Europe. BNP Paribas is uniquely positioned to help them seize those opportunities.
The France-Hong Kong Mutual Recognition of Funds is another agreement driven by regulatory authorities on each side, which have emphasised its significance in promoting their respective local asset management industries. Like the Switzerland-Hong Kong deal, it stands to benefit a range of stakeholders in each jurisdiction.
Through the scheme, fund managers in Hong Kong can gain access to a very large pool of investors, growing their assets under management and lowering their total expense ratios.
Read the full article: