Ongoing Compliance Form for Reporting of Material Breaches

The Securities and Futures Commission of Hong Kong, SFC, has issued an entirely new form for the reporting of various breaches under the Code on Unit Trusts and Mutual Funds and under the SFC’s Overarching Principles Section of its Handbook. These breaches include, among others, violations of investment restrictions, derivative exposures, position limits, or information reporting.
The new form thereby requires information on
– the investment fund affected by the breach (fund name, custodian, fund management company, etc.);
– type of breach occurred and the respective date on which it occurred;
– the duration of the breach and the impact upon investors;
– the party responsible for the breach and the party who detected the breach; and
– the arrangements made by the investment fund to compensate for breaches that resulted in NAV errors, if necessary.