On 13 May 2025, the Hong Kong Securities and Futures Commission (HK SFC) and the Ontario Securities Commission (OSC) of Canada entered into a Memorandum of Understanding (MoU) to strengthen the supervision of investment managers operating collective investment schemes across both jurisdictions. The agreement was signed on the margins of the IOSCO Annual General Meeting held in Doha, Qatar.
The MoU establishes a regulatory framework for enhanced cooperation, facilitating mutual consultation and exchange of supervisory information between the HK SFC and the Canada’s OSC. In a consequential follow-up, the SFC has now formally included Ontario, Canada, in its list of Acceptable Inspection Regimes, thereby enabling Canada’s OSC-licensed fund managers to manage HK SFC-authorised funds under Hong Kong’s regulatory framework.
This bilateral arrangement further anchors the HK SFC’s ongoing international strategy to promote resilient capital market linkages amid a rapidly evolving global regulatory climate. The Canada’s OSC and HK SFC partnership enhances cross-border operability and provides global asset managers a reliable route for delegation and recognition, facilitating smoother market entry, compliance oversight, and investor protection standards across Asia and North America.
Ms. Julia Leung, CEO of the HK SFC, “This MoU represents a pivotal step towards enhancing the regulatory collaboration between the HK SFC and the OSC. It also lays the foundation for asset managers in both markets to offer cross-border investment management services, in an ever challenging, complex and shifting global landscape, fostering cross-market industry collaborations and deepening market connectivity between Hong Kong and its trusted and like-minded overseas partners would ensure our capital markets remain robust and resilient.”
Echoing this sentiment, Mr Grant Vingoe, CEO of the Canada’s OSC, remarked: “The signing of this MoU between the Hong Kong SFC and the OSC marks a significant moment for both markets. Through closer collaboration, we are opening up new markets to our regulated firms, while also facilitating cross-border information sharing to protect investors. The OSC and the SFC are close allies in our work to support our firms, protect our investors, and help our capital markets grow.”
The operational impact of this MoU is directly tied to Note 5.1 of the HK SFC’s Code on Unit Trusts and Mutual Funds, which mandates that either the management company or the investment delegate must be licensed or registered in Hong Kong, or based in a jurisdiction deemed to have an acceptable inspection regime. Ontario’s inclusion now allows Canada’s OSC-regulated managers to participate in Hong Kong-authorised fund structures, providing regulatory clarity and market access under a trusted supervisory environment.
(Source: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR63)
