Amid shifting global alliances and trade patterns, the securities regulators for Ontario and Hong Kong signed a deal that aims to facilitate access to one another’s markets, which may open horizons for asset managers with designs on global expansion.
The Ontario Securities Commission (OSC) signed a memorandum of understanding on Wednesday with the Securities and Futures Commission of Hong Kong (SFC) that will enhance collaboration between the regulators and facilitate the exchange of information to enable cross-border supervision for firms.
Among other things, the agreement is intended to make it easier for portfolio managers that are registered in Ontario to provide investment management to investment funds that are under the SFC’s oversight.
“Through closer collaboration, we are opening up new markets to our regulated firms, while also facilitating cross-border information sharing to protect investors,” OSC CEO Grant Vingoe said in a release.
“This MoU represents a pivotal step towards enhancing the regulatory collaboration between the SFC and the OSC. It also lays the foundation for asset managers in both markets to offer cross-border investment management services,” said Julia Leung, the SFC’s CEO.
The agreement covers consultations between the regulators, and the exchange of information for supervisory purposes, but not information sharing for enforcement actions. Sharing information for enforcement would continue to be covered under the International Organization of Securities Commissions’ (IOSCO) multilateral MoU.