In Hedge Fund Journal Article, Anne-Marie Godfrey and Alexander Pannett Discuss Hong Kong’s Push to Become a Leading Funds Center

Akin Gump investment management partner Anne-Marie Godfrey and associate Alexander Pannett have written the article “The Hong Kong Open Ended Fund Company” for The Hedge Fund Journal, discussing Hong Kong’s efforts to establish itself as “a leading centre for asset management.”

Godfrey and Pannett write about the current legal and regulatory framework relating to the establishment of investment funds in Hong Kong. They then outline the steps the Hong Kong government has taken to introduce the new regime for open-ended fund companies (OFCs). They note the legislation calls for “open-ended collective investment schemes established in company form … with limited liability and variable share capital.” As a result, OFCs “will have greater flexibility than conventional companies.”

Godfrey and Pannett provide some information concerning requirements and regulation of OFCs, noting they “will not be required to be licensed corporations” under Hong Kong’s Securities and Futures Ordinance, but they will still have to be registered with the Securities and Futures Commission before they can be incorporated.

Concluding, the authors say the amendment bill is “a welcome development” that will lead to “more choice for asset managers when establishing new fund products being developed.” It will also add “further competitive advantage to Hong Kong as an international asset management centre.”