SFC strengthens transparency for funds investing in private market assets

Hong Kong’s Securities and Futures Commission (SFC) has issued a circular to set out guidance for authorised funds with investments in private credit and private equity. The SFC pointed out that the complexity of multi-layered structures and limited transparency may make it challenging for retail investors in the region. Under the new guidance, a fund will generally be considered a complex product where its combined direct and indirect exposure to private market assets reaches 50% or mor