The Hong Kong Government published the Securities and Futures (Amendment) Bill 2016 (the Bill) on 15 January 2016, which introduces the legal, regulatory, and tax framework for an open-ended fund company (OFC) regime in Hong Kong. Prior to the Bill, an open-ended investment fund could only be established in Hong Kong in the form of a unit trust. This Bill provides an alternative Hong Kong domicile investment vehicle to the asset management industry. In this news flash, we summarise the main tax principles of the Bill and highlight some key areas market players should be aware of.
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