SFC has released consultation conclusions on amendments to the PI Rules

May 19, 2018 at 05:17 AM

The Hong Kong Securities and Futures Commission (SFC) today released consultation conclusions on proposed amendments to the Securities and Futures (Professional Investor) Rules (PI Rules). These amendments are meant to standardise the rules for prescribing professional investors.

The consultation paper was issued on 1st of March 2017 and was proposing the the number of amendments to the Securities and Futures (Professional Investor) Rules (PI Rules) which align to include the changes the SFC has previously granted under the Securities and Futures Ordinance (SFO).

The amendments to the PI Rules (Revised PI Rules) are allowing portfolios held in joint accounts with persons other than associates and investment corporations owned by an individuals to count towards meeting the monetary threshold to qualify as professional investors. Also the amendments are expanding the corporations as professional investors and allowing the other forms of evidence to demonstrate qualification as professional investors.

A total of 17 written submissions from market representatives were received by the SFC during the period of consultation. Most of the respondents were positive about the changes and proposals mentioned in the amendments. Although, some of the respondents suggested that the SFC should loosen the other rules and criteria. Considering all the comments, the SFC made a decision to count the proposals as appropriate for the Hong Kong market. The amended PI Rules will come into force on 13 July 2018.

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