Earlier on 20 January 2021, the SEC and the Securities and Futures Commission of Hong Kong (SFC) signed a Memorandum of Understanding concerning the Mutual Recognition of Funds between Hong Kong Special Administrative Region of the People's Republic of China and Thailand to facilitate cross-border offerings of funds between Hong Kong and Thailand for asset management companies by recognizing each other’s fund standards. 

In this connection, the SEC has issued regulations for such cross-border offerings of funds under HK-TH MRF. Essentially, a fund to be offered to retail investors in the host country through local licensed intermediaries in the host country must be authorized or approved for establishment and offering for sale to the public in the home country and must have the characteristics in accordance with the relevant regulations of the home country and additional requirements specified in the MoU. 

A Hong Kong fund to be offered through licensed intermediaries in Thailand under HK-TH MRF is required to disclose information of the fund with material information equivalent to that disclosed by Thai funds to their unitholders. Also, the Hong Kong fund must prepare the factsheet in the format specified by the SEC, and a local representative must be appointed to coordinate in the matter of disclosure and delivery of information to Thai investors as well as handling possible disputes. 

HK-TH MRF is a cooperative framework that will provide convenience for asset management companies to offer Thai funds overseas in addition to the ASEAN Collective Investment Schemes (ASEAN CIS) and the Asia Region Funds Passport (ARFP), which have been launched in 2014 and 2019, respectively. More information on HK-TH MRF is available at https://www.sec.or.th/TH/Pages/LawandRegulations/MutualRecognitionFunds.aspx .  

The governing regulations summarized above take effect from 16 June 2021. 

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