Hong Kong has adopted interim measures to ease the processing of Ucits III fund applications and ann...
Hong Kong has adopted interim measures to ease the processing of Ucits III fund applications and announced plans to abolish estate duty tax to boost its role as an asset management centre.
The Securities and Futures Commission (SFC) in Hong Kong has implemented the interim measures for funds domiciled in Luxembourg, Dublin and the UK. It said the aim of the interim measures is to ensure there is sufficient disclosure of information for the "Hong Kong investors to make informed investment decisions and that suitable risk management measures are undertaken".
At the end of March, the SFC issued a consultation paper on proposed benchmarks and requirements to be imposed on Hong Kong-authorised real estate investment trusts (Reits) that want to invest in overseas properties. According to Linklaters, the "draft practice provides guidance on how to apply the regulatory principles in the code on Reits to overseas investments, allowing for the different characteristics of the jurisdictions in which the investments may be made".
Hong Kong is also to try to increase its attractiveness as a financial centre by abolishing estate duty tax. This is despite the fact that its abolition could lead to the Hong Kong government missing out on HK1.5bn (£100m) a year in revenue.
The Hong Kong secretary for financial services and the treasury, Frederick Ma, said the proposed abolition is primarily aimed at promoting Hong Kong's development as an asset management centre by acting as an investment in the city's financial services industry and economic development.
"Asset management fosters growth in a number of professional services and other industries such as local real estate and the retail trade will also benefit," said Ma.
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