Hong Kong

Hedge Funds Guidelines

Steve Roder, KPMG, Hong Kong

On 2 May 2002, the Securities and Futures Commission (“SFC”) announced that, commencing from 17 May 2002, hedge funds are allowed to be offered to the public in Hong Kong. The SFC also published the Hedge Funds Guidelines setting out the regulatory requirements for the authorisation and sale of hedge funds. There is no minimum subscription threshold for hedge funds with a capital guarantee feature, but the threshold for a single hedge fund is US$50,000 and for a fund of hedge funds is US$10,000. These requirements will be incorporated into the Code on Unit Trusts and Mutual Funds as Chapter 8.7.