Streamlined Hong Kong registration process now available for certain Irish UCITS

What have the Central Bank and the SFC announced?

On 14 May 2025, the Central Bank of Ireland (CBI) and the Hong Kong Securities and Futures Commission (SFC) entered into a Memorandum of Understanding on Mutual Recognition of Funds (MoU).

Under the terms of the MoU, certain Irish UCITS funds with Irish UCITS management companies can now avail of a more streamlined process for registering their shares for sale in Hong Kong, under which the SFC commits to completing the relevant authorisation process within fifteen business days of receipt of a complete application (SFC FASTrack).

What type of Irish UCITS funds can avail of the SFC FASTrack under the MoU?

In order to avail of the SFC FASTrack, Irish UCITS funds must fall into one of the following categories:

• General equity fund;

• Bond fund;

• Mixed fund;

• Fund of funds;

• Unlisted index funds;

• Passively managed index-tracking ETFs;

• Listed open-ended fund / actively managed ETF; or

• Feeder fund, where the underlying fund falls within one of the above fund types.

The SFC and CBI retain the power to amend this list to include other types of funds in the future.

What type of UCITS funds are not eligible to avail of the SFC FASTrack under the MoU?

Certain types of Irish UCITS funds are explicitly disqualified from benefitting from the new process based on their investment universe and investment strategy.

For example, any Irish UCITS fund whose leverage arising from the use of derivatives exceeds 100% of its net asset value as calculated under the commitment approach cannot avail of the SFC Fastrack.

Applicants must also confirm that the Irish UCITS fund does not invest in (i) crypto-assets or crypto-currencies, (ii) physical commodities including precious metals, commodity-based investments or real estate or (iii) certificates representing any of these assets.

Is the relevant application made to the Central Bank or the SFC?

The process involves making a filing with both the Central Bank and the SFC as follows:

Step 1

An applicant seeking to benefit from the SFC FASTrack must first submit a certification application, together with certain supporting documentation, to the CBI.

The CBI then has ten business days within which to confirm that the requested certification has been issued by it to the SFC or alternatively to request additional information from the applicant.

Step 2

Once the Central Bank has confirmed to the applicant that it has issued the relevant certification to the SFC, the applicant must then submit its application for authorisation to the SFC directly in accordance with the regular FASTrack authorisation process.

Once successfully registered in Hong Kong, are there any ongoing requirements that an Irish UCITS fund must comply with?

There are a number of requirements that an Irish UCITS fund registered for sale in Hong Kong must comply with on an ongoing basis, regardless of whether they have been authorised by the SFC via the SFC FASTrack or via the full non-FASTrack authorisation process.

These requirements are set down in full in the SFC Circular.

Does the MoU address the ability of Hong Kong funds to be marketed to the public in Ireland?

Yes. Under the framework agreed between the CBI and the SFC under the MoU, eligible Hong Kong public funds can be sold to the public in Ireland through a streamlined process implemented by the CBI.[1]

Conclusion

The signing of the MoU by the CBI and the SFC is a welcome development which should expedite the registration process under which certain Irish UCITS funds can access the Hong Kong market.

Contact Us

If you have any questions, please contact any member of the Dillon Eustace fund registration team at fundregistrations@dilloneustace.ie, your usual Dillon Eustace contact or one of the authors listed below.

Footnote:
[1] Further details on this process are available here.