Hong Kong’s securities watchdog has committed itself to simplifying the licensing requirements for overseas hedge fund managers looking to set up in the former British colony.

Hong Kong’s Securities and Futures Commission (SFC) said the changes include speeding up the licensing process for some U.S. and UK-registered hedge fund managers, and exempting some staff at hedge funds from having to take exams.
Hong Kong is home to more hedge fund assets than any other Asian city, but a growing number of hedge fund managers are choosing to set up in Singapore, where authorities have tried to attract newcomers with less stringent regulation.

The Hong Kong regulator said that firms already licensed or registered in the USA or Britain will “benefit from an expedited licensing process”, assuming they only serve professional investors and have good compliance records.

It added that staff nominated to be the “responsible officers” of hedge fund firms can also be exempted from the local regulatory examination if they fulfil the necessary criteria: a broad range of industry experience will be recognised as satisfying the competence requirements.

Source: Reuters