The Alternative Investment Management Association (AIMA) has published a Fund Manager Code of Conduct (FMCC) implementation guide.
The implementation guide is based on the revised FMCC, which was published by the Securities and Futures Commission of Hong Kong (SFC).
According to AIMA, the revisions reflect the desire of the SFC to implement financial and regulatory policy reforms affecting the asset management industry that were recommended by international and regulatory bodies after the global financial crisis.
The revisions address issues such as systemic risk, shadow banking, liquidity and risk management, enhanced custody requirements, securities lending and repos, and conflicts of interest.
Additionally, the guide is designed to be the most up-to-date and practical guide, providing a summary of the scope of application of the FMCC.
As well as this, it provides a summary of the SFC’s approach and a factual analysis toolkit, which includes checklists and practical scenarios.
This will become effective on 17 November this year, and it covers the latest guidance and regulation from the SFC for fund managers managing funds or discretionary accounts in Hong Kong.
Jack Inglis, AIMA CEO, said: “The FMCC Implementation Guide uncovers the importance of ongoing industry dialogue around the expectations placed upon fund managers and their constituents.”
“Increasingly our members look to AIMA for direction surrounding areas of compliance and regulation. This guide addresses many of the queries circulating the market, offering relatable examples and easy-to-understand summaries of the SFC's position.”
Kher Sheng Lee, managing director, co-head of the Asia Pacific and deputy global head of government affairs, commented: “The FMCC changes represent landmark reforms which redefine the asset management regulatory framework of Hong Kong.”
“AIMA is proud to have developed a bottom-up, industry-led approach to address the needs of managers in complying with the FMCC, drawing on its distinct strengths as a global industry group.”
Matt Feldmann, Clifford Chance partner, cited: "Ongoing shifts in global markets mean fund managers are subject to constantly evolving regulation. This guide is a pragmatic toolkit for fund managers to comply with the obligations and conduct requirements under the FMCC, helping the industry to achieve best practice standards."
Hannah Cassidy, partner at Herbert Smith Freehills, added: “Herbert Smith Freehills was pleased to work with AIMA, Clifford Chance and the FMCC Working Group on this guide. In a region with increasing regulatory complexity, it is critical for fund managers to ensure they have practical and user-friendly guidance.”
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