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Hong Kong plans to regulate trustees, custodians of funds
[HONG KONG] Hong Kong has proposed directly regulating companies that look after assets invested in funds and trusts, its securities regulator said on Friday, as part of efforts to strengthen oversight of the asset management industry.
The move would bring Hong Kong into line with international best practice, as the financial centre aims to turn itself into a hub for asset managers, the Securities and Futures Commission (SFC) said.
Current regulatory arrangements for the sector are patchy, which the regulator said meant it had been unable to discipline trustees or custodians with deficiencies in their systems.
"The proposed regime will provide better protection for scheme assets and help safeguard the interests of retail investors," said SFC chief executive Ashley Alder in a statement.
A consultation period on the proposals will run until the end of 2019.