Hong Kong SFC announces facilitation of feeder ETFs to allow investment in overseas-listed ETFs subject to fulfillment of conditions
The Securities and Futures Commission (SFC) of Hong Kong today issued a circular to allow SFC-authorized feeder exchange-traded funds (ETFs) adopting a feeder fund structure to invest in overseas listed ETFs, including active ETFs, from different markets under simplified requirements, subject to certain conditions. The SFC said Ms. Fiona Choi, Executive Director, Investment Products Division of the SFC, said that the further simplification of the requirements applicable to feeder ETFs will provide cost savings and flexibility to ETF issuers and broaden investors' investment options, while ensuring that an appropriate level of investor protection is maintained. It would also enhance Hong Kong's competitiveness in attracting overseas ETFs and strengthen its position as a premier asset management hub.
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