Hedge Fund Journal Runs Anne-Marie Godfrey Article on Hong Kong Regs for Asset Managers

“Expanded Licensing Regime For OTC Transactions,” an article by Akin Gump investment management partner Anne-Marie Godfrey, has been published by The Hedge Fund Journal.

The article discusses the Circular issued by the Hong Kong Securities and Futures Commission (SFC) in October 2015—which sets out an expanded licensing regime for over-the-counter (OTC) derivative transactions and products—and notes that the scope of asset management, as a Type 9 Regulated Activity per the Hong Kong Securities and Futures Ordinance (SFO), has been revised. In particular, the existing Type 9 license was expanded “to cover asset management activities with respect to OTC derivative products (alongside the more traditional ‘securities and futures contracts’ asset management).”

It also notes that separate amendments to the SFO were made to create proposed new regulated activities:

  • dealing or advising on OTC derivatives products
  • providing client clearing services for OTC derivative transactions

as well as to expand the scope of “providing automated trading services” to cover OTC derivative transactions or products.

The article covers a variety of topics related to this revision, including descriptions of what constitutes an OTC derivative product, how the SFC will implement the Expanded OTC Regime and how the application process for notices to be filed with the SFC will work. The article also outlines next steps for specific individuals in the industry such as Type 9 asset managers of OTC derivative products and asset managers who only manage securities.

Godfrey was recently shortlisted for Euromoney’s Asia Women in Business Law Awards. Learn more here.