The Securities and Futures Commission (SFC) issued a circular highlighting significant deficiencies in the conduct of licensed asset managers managing private funds, which have jeopardized investor interests and undermined confidence in Hong Kong’s market integrity. The circular identified breaches in regulatory requirements, including conflicts of interest and risk management, and emphasized the responsibility of senior management to ensure compliance and uphold conduct standards. The SFC plans to conduct a thematic inspection of asset managers to address these issues and will hold senior management accountable for serious misconduct. Investors are advised to exercise caution and seek updated information on their investments.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR164