Who watches the watcher, the Securities and Futures Commission muses in a recent proposal to expand its oversight and supervise depositaries of funds authorized in Hong Kong.
The regulator will propose that depositories of collective investment schemes (CIS) be subject to a new type of licensed activity, «RA13». Depositories are defined as trustees for CIS in unit forms and «custodians for CIS in other forms, who are at the top of the custodial chain», according to the SFC statement.
The SFC was flexible on which Hong Kong regulator would gain expanded powers, be it the Hong Kong Monetary Authority or itself.
«It is vital that depositaries of public funds which operate in Hong Kong are subject to the SFC’s direct regulation,» said Ashley Alder, SFC’s CEO. «The proposed regime will provide better protection for scheme assets and help safeguard the interests of retail investors.»
Public comments can be submitted on or before December 31 this year.
