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Thai, HK stock markets agree mutual recognition of funds


Stock market regulators in Hong Kong and Thailand on Wednesday clinched a memorandum of understanding (MoU) on Mutual Recognition of Funds (MRF), to allow distribution of funds in each other's market through a streamlined process.

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The MoU between Hong Kong’s Securities and Futures Commission (SFC) and the Securities and Exchange Commission of Thailand (SEC) establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation for the cross-border offering of eligible Hong Kong and Thai funds.

The two regulators also agreed to speed up the approval process of a local feeder fund investing in an MRF-eligible Thai or Hong Kong master fund, and to clarify how they can operate in a streamlined manner.

"This new cooperation framework signifies a major expansion of our MRF network in Asia. It opens up new business opportunities for fund management firms and broadens cross-border investment channels and choices for investors," said Ashley Alder, CEO of the Hong Kong regulator.

SEC secretary-general Ruenvadee Suwanmongkol hailed the bilateral agreement as another milestone in Hong Kong-Thailand cooperation, following the MoU on Strengthening of Economic Relations signed in 2019.

"The Mutual Recognition of Funds initiative will deepen economic cooperation between Hong Kong and Thailand. More importantly, it will promote the competitiveness of local intermediaries in the international arena while enriching the types of fund products offered to investors," Ruenvadee said.

The cooperation arrangements set out in the MoU come into effect on Wednesday (January 20), save for the mutual recognition of funds scheme which the regulators said should be implemented within six to 12 months.

Published : January 20, 2021

By : The Nation