Tue, Sep 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hong Kong court allows private fund marketing on the internet

Friday, April 26, 2013

Bailey McCann, Opalesque New York: A Hong Kong court has recently acquitted a company and its director on four counts of issuing advertisements to promote a collective investment scheme, including posting relevant information on its website, without authorisation by the Securities and Futures Commission (SFC). Charges were brought as the SFC tends to prohibit the marketing of private funds like hedge funds, however a lack of specific guidance on internet marketing meant that the courts sided with the company.

According to a brief on the issue from law firm Deacons, under the Securities and Futures Ordinance (SFO), private funds are prohibited from issuing a public solicitation for their fund. However, the SFC does allow private funds to market to professional investors, but guidelines about what is permissible marketing to professional investors is unclear.

In this case, the SFC said the parties involved failed to get approval from the regulator before posting the advertisement. The company countered and said the information provided on its website did not include a public solicitation, instead that the information would only be of use to professional investors - the judge agreed. According to a statement from the SFC, they are considering an appeal.

Attorneys for Deacons note that the case could mark a shift of policy in Hong Kong if funds note that the information is specific......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style