Hong Kong Securities Regulator Highlights Deficiencies in Private Fund Management

According to Odaily, the Hong Kong Securities and Futures Commission (SFC) has issued a circular highlighting several deficiencies and misconduct in the management of private funds and discretionary accounts by licensed corporations. The SFC's findings indicate that many cases involve serious misconduct, posing significant threats to investor interests and undermining confidence in Hong Kong's market integrity and its status as an international asset management hub. The circular outlines various areas of non-compliance, including conflicts of interest, risk management, investment within authorized scopes, information disclosure to investors, and valuation methods. It also details the current responsibilities of asset management companies in these situations. The SFC has urged asset management companies to review the concerns raised in the circular and take appropriate measures to rectify any identified deficiencies.