Hong Kong MRF - Recognized Mainland Fund

Requirements

Description

1. Applicable legislation

Securities and Futures Ordinance

2. Supervising Authority

The Hong Kong Securities and Futures Commission (SFC)

China securities regulatory commission (CSRC)

3. Corporate vehicle permitted

Only licensed:

• IBC (International Business Company)

• LP (Limited Partnership)

• Trust

• Limited Liability Company

From any recognized jurisdiction by SFC and CSRC

4. Share capital or equivalent

• • Minimum subscription

The fund must have a minimum fund size of not less than RMB 200 million or its equivalent in a different currency;

• • Minimum investors

None

5. Directors / Partners / Trustees

• • Minimum number

1

• • Corporate Directors / Partners / Trustees allowed

Yes

• • Local Directors / Partners / Trustees required

Yes

6. Fund functionaries required

• • Custodian

• • • Custodian required

Yes

• • • Local custodian required

Yes

• • • Eligible custodian

A qualified custodian for publicly offered securities investment funds licensed by the SFC

• • Fund manager / Investment manager

• • • Fund manager required

Yes

• • • Local fund manager required

Yes

• • • Fund manager requires to be licensed

Yes

• • • Eligible fund manager

Mainland- Hong Kong licensed fund Manager licensed by CSRC and operated in Hong Kong

Approved Foreign Fund Manager is not allowed unless registered, licensed by CSRC and operated in Mainland Hong Kong.

• Fund administrator

• • • Fund administrator required

Yes

• • • Local fund administrator required

Yes

• • • Eligible fund administrator

Mainland- Hong Kong licensed fund administrator licensed by SFC and operated in Hong Kong

Approved Foreign Administrator is not allowed unless registered, licensed by SFC and operated in Hong Kong.

• • External auditor

• • • External auditor required

Yes

• • • Local external auditor required

No

• • • Eligible external auditor

Qualified local auditor approved by the either SFC or CSRC

7. Asset Requirements

• • Restriction on type of asset class invested

None

• • Asset diversification requirements

None

• • Limitation on size of the fund or total assets under management

8. Local physical office required

Yes

9. Prospectus / Offering Memorandum required to be filed

Yes

10. Eligible for listing

Yes

11. License fees

• • License application fee

Licensed Corporation(LC) USD 4,740

• • Annual license fee

Licensed Corporation(LC) USD 4,740

12. Estimated license processing duration

15 Weeks