Hong Kong’s revised UT Code keeps the complex label tight, adds a VaR test for non-complex status and lets covered call funds net their option positions.

Hong Kong's Securities and Futures Commission (SFC) has released its consultation conclusions on proposed amendments to the code on unit trusts and mutual funds (UT Code). The new guidelines are relevant to structured products offered to retail investors through fund structures The new guidelines are relevant to structured products offered to retail investors through fund structures, while structured notes and equity-linked investments are under a separate SFC regime not covered by this circ