Friday September 28 2018
News Source: Fund Regulation
Country: Hong Kong
The Investment Products Division of Securities and Futures Commission (SFC) have published the following documents relating to Real Estate Investment Trusts (REITs) on 28 September 2018:
- Updated Frequently Asked Questions relating to Real Estate Investment Trusts (added Question 4A and revised Questions 5 and 28A)
- Updated Guidance on REIT Authorisation Process and Documentary Requirements
Question 4a concerns how how many responsible officers should a REIT manager have. The SFC have clarified that under ection 125(1)(b) of the SFO, a REIT manager shall maintain at least two responsible officers, failing which the REIT manager shall not carry on the regulated activity for which it is licensed. To alleviate the risk of the number of responsible officers falling below the statutory minimum requirement, a REIT manager is generally expected to have at least three responsible officers at all times. In the event the number of responsible officers shall fall below three, the REIT manager should notify the SFC as soon as reasonably practicable and update the SFC of the succession plan. The REIT manager should also use its best endeavours to restore the number of responsible officers to at least three as soon as reasonably practicable.
Click on the above link for further information.