Dubai and HK regulators hold top level talks to offer HK-domiciled funds in DIFC

The Dubai Financial Services Authority (DFSA) and the Securities and Futures Commission (SFC) co-hosted a high-level roundtable today on opportunities for Hong Kong asset managers to distribute funds in the Dubai International Financial Centre (DIFC).

In a statement today (5 April), the DFSA said more than 15 top executives of Hong Kong asset managers attended the roundtable discussion presided over by the DFSA’s chief executive Ian Johnston and the SFC’s chief executive officer Julia Leung.

During the joint session, Johnston introduced the regulatory requirements for offering Hong Kong-domiciled funds in the DIFC, and prospects in DIFC for Hong Kong asset managers, including access to investors in the UAE market through the UAE fund passporting regime.

Also present at the event were the SFC’s executive director of investment products, Christina Choi, and DFSA’s associate director of conduct, supervision, David Tait, who elaborated on relevant regulatory requirements at a subsequent seminar.

Johnston said: “It has been a pleasure to co-host this roundtable with the SFC in Hong Kong. With the expansion of the China-Middle East corridor, we see an opportunity for greater cooperation between DIFC and Hong Kong, particularly in the asset management sector. We, as the regulator, are committed to meaningful collaboration between our leading international financial centres and recognise that this is critical to our continued collective success."

Leung said: “The SFC is committed to facilitating the development of deeper and broader investment markets for our asset management industry and we look forward to exploring further connectivity with the DIFC in the asset management space. I am sure Hong Kong asset managers had valuable takeaways from the events today, which are only the beginning of our collaboration.”

The DFSA and the SFC plan to host another roundtable for asset management industry participants in Dubai next month.

The statement further said the SFC has published an information sheet on its website to provide an overview of the market landscape of DIFC, and how Hong Kong funds could be offered in the DIFC and the mainland UAE via DIFC by way of the UAE fund passporting regime.