Godfrey and Ho Publish Article on New Climate-related Risk Ruling in HFLR
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Hedge Fund Law Report has published the article “Hong Kong SFC Issues Consultation Conclusions on Management and Disclosure of Climate‑Related Risks by Fund Managers” written by Akin Gump investment management partner Anne-Marie Godfrey and associate Ruby Ho. The article, which originated as an Akin Gump client alert, discusses the Hong Kong Securities and Futures Commission’s (SFC) recent guidance on management and disclosure of climate‑related risks for fund managers.
According to the authors, the new ruling requires fund managers managing collective investment schemes to take “climate-related risks into consideration in their investment and risk management processes and make disclosures regarding those investment and risk management policies and processes.” The ruling also formally amends the Fund Manager Code of Conduct to incorporate the new requirements.
Understanding the complexity of climate-related risk management in Hong Kong, the authors recommend that fund managers begin their internal reviews as soon as possible to determine:
- “what additional policies they require;
- what additional disclosures they are required to make to investors; and
- what the appropriate disclosure forms are.”
To read the full article, click here.