Hong Kong Regulator to Increase Monitoring of Fund Mangers

Hong Kong’s Securities and Futures Commission (SFC) has reminded fund industry participants and intermediaries of their obligations to look after the interests of clients, given the potential impact of the Covid-19 outbreak on market volatility and liquidity as well as credit quality.

The regulator said it would be stepping up monitoring activities in light of the Covid-19 outbreak, and issued two circulars on Friday: one to managers, trustees and custodians of SFC-authorized funds, and another to intermediaries.

«Managers are expected to fully cooperate with the SFC on the heightened reporting requirements,» the regulator said. It also reminded intermediaries of their obligations to ensure the suitability and timely dissemination of information to clients.

«Period of Unprecedented Volatility»

«This is a period of unprecedented volatility across asset classes and the SFC remains laser-focused on ensuring Hong Kong markets stay open and continue to function in a fair and orderly manner,» said SFC CEO Ashley Alder in a statement.

The volatility index for Hong Kong’s benchmark Hang Seng Index reached 64.8 on 16 March, its highest since 2008. It current sits at 44.98.

SFC said it is closely monitoring the operational and financial resilience of industry participants and market infrastructure, and would provide further guidance to the industry as needed.


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