In mid May, the Ontario Securities Commission (OSC) and the Securities and Futures Commission of Hong Kong (SFC) signed a Memorandum of Understanding (MoU) intended to assist cross-border supervision and market access. In the press release announcing the MoU, its stated intention is to strengthen regulatory collaboration and facilitate the exchange of information between the OSC and the SFC in relation to supervision of investment managers of collective investment schemes, based in their respective jurisdictions (in Ontario, this would cover investment funds that are reporting issuers).
The SFC has now included Ontario on its list of Acceptable Inspection Regimes, which means that it will be easier for portfolio managers registered with the OSC to provide investment management services for funds authorized by the SFC.
Within the framework of the MoU, the OSC and the SFC will use reasonable endeavours to provide each other with co-operation in relation to the supervision and oversight of covered entities. This co-operation is expected to include consultation, exchange of information and discussion on matters of mutual supervisory interest. This MoU does not include assistance for the purpose of taking enforcement actions, which is covered off by provisions of existing MoUs.
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