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Fiduciary Services

Open-ended

fund company

Fund Formation and Structuring

Trust Setup

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Open-ended fund company
(OFC fund)

Hong Kong's fund market is renowned for its extensive offering of over 2,000 publicly available funds, featuring options from both local and international sources, with a focus on unit trusts and corporate funds. The introduction of the "open-ended fund company" (OFC) structure in 2018 under the Securities and Futures Ordinance added a new dimension to the landscape. OFCs are distinct legal entities, contrasting with the traditional unit trust structure, with their assets safeguarded by a custodian. Each OFC has its own board of directors responsible for fiduciary and statutory duties.

 

An important feature of OFCs is the ability to have multiple sub-funds, each operating under a "protected cell" regime, ensuring the separation of assets and liabilities, reducing the risk of one sub-fund's insolvency affecting others. This concept is relatively new and may vary in recognition among overseas courts based on jurisdiction.

 

The Company Registry and the SFC offer comprehensive information about OFCs, including names, incorporation details, director directories, and more. The benefits of OFCs include cost savings, global distribution facilitation due to their corporate structure, suitability for various types of funds, streamlined management with no mandatory annual reports or meetings, government grants, and Hong Kong profits tax exemptions.

 

In summary, Hong Kong's fund market offers a rich array of investment options, with the OFC structure providing a modern and flexible alternative to traditional unit trusts, allowing for easier management, global appeal, and various tax and cost advantages, which makes it an attractive choice for both local and overseas investors.

Windward, comprised of seasoned experts, offers vital support with extensive industry knowledge. We've successfully guided numerous open-ended fund companies through their unique challenges, particularly in the realm of regulatory compliance. Our dedicated team ensures your business operates within the prescribed boundaries of governing bodies, covering everything from understanding and implementing new regulations to meticulous documentation and accurate reporting. We tailor our expertise to your specific needs for transparent and compliant operations in the financial sector. Our comprehensive range of services, including regulatory compliance, investor relations, and operational strategies, equips us to adeptly navigate obstacles. At Windward, we foster enduring client relationships by understanding their distinctive challenges and aspirations, consistently delivering successful outcomes.

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Fund Formation and Structuring

To optimize taxation, investors can benefit from establishing an investment fund, and our experienced professionals are equipped to analyze each client's situation and recommend the most suitable structure. Windward offers support in the following ways:

  1. Advising on fund structure and setup.

  2. Thoroughly reviewing fund documents, including the Private Placement Memorandum (PPM), subscription agreement, redemption form, memorandum, and articles of association.

  3. Facilitating communication with investors and aiding in anti-money laundering compliance.

  4. Conducting client due diligence.

  5. Consulting with the registered office and local legal counsel.

  6. Coordinating license applications with regulatory authorities.

  7. Assisting in the appointment of non-executive directors.

  8. Managing the establishment of the fund by working with lawyers, auditors, and bankers.

  9. Assisting in the opening of bank accounts.

This comprehensive range of services ensures that investors can navigate the complexities of fund management while optimizing their tax position.

Open-ended fund company (OFC fund)

Hong Kong's fund market is renowned for its extensive offering of over 2,000 publicly available funds, featuring options from both local and international sources, with a focus on unit trusts and corporate funds. The introduction of the "open-ended fund company" (OFC) structure in 2018 under the Securities and Futures Ordinance added a new dimension to the landscape. OFCs are distinct legal entities, contrasting with the traditional unit trust structure, with their assets safeguarded by a custodian. Each OFC has its own board of directors responsible for fiduciary and statutory duties.

 

An important feature of OFCs is the ability to have multiple sub-funds, each operating under a "protected cell" regime, ensuring the separation of assets and liabilities, reducing the risk of one sub-fund's insolvency affecting others. This concept is relatively new and may vary in recognition among overseas courts based on jurisdiction.

 

The Company Registry and the SFC offer comprehensive information about OFCs, including names, incorporation details, director directories, and more. The benefits of OFCs include cost savings, global distribution facilitation due to their corporate structure, suitability for various types of funds, streamlined management with no mandatory annual reports or meetings, government grants, and Hong Kong profits tax exemptions.

 

In summary, Hong Kong's fund market offers a rich array of investment options, with the OFC structure providing a modern and flexible alternative to traditional unit trusts, allowing for easier management, global appeal, and various tax and cost advantages, which makes it an attractive choice for both local and overseas investors.

Windward, comprised of seasoned experts, offers vital support with extensive industry knowledge. We've successfully guided numerous open-ended fund companies through their unique challenges, particularly in the realm of regulatory compliance. Our dedicated team ensures your business operates within the prescribed boundaries of governing bodies, covering everything from understanding and implementing new regulations to meticulous documentation and accurate reporting. We tailor our expertise to your specific needs for transparent and compliant operations in the financial sector. Our comprehensive range of services, including regulatory compliance, investor relations, and operational strategies, equips us to adeptly navigate obstacles. At Windward, we foster enduring client relationships by understanding their distinctive challenges and aspirations, consistently delivering successful outcomes.

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