Funds domiciled in Hong Kong have surged in numbers over the past year, according to the city's securities regulator. The rise has been attributed to the lure of the Hong Kong-China mutual recognition scheme.
The British Virgin Islands' new office in Hong Kong will field a rising number of enquiries about BVI trust structures. But it may not find it easy to take funds business from the Cayman Islands.
The move is set to lighten the compliance burden for asset managers domiciling funds in the Cayman Islands, an offshore jurisdiction popular among Asian firms.
Multinational fund houses with operations in Asia are being urged to pay attention to new proposals by OECD members to clamp down on tax loopholes over the next two years.
The Cayman Islands regulator may water down its plan to cap the number of fund board directorships, but the issue is getting less play in Asia than in the West.
The Cayman Islands has amended its regulations to ensure mutual funds are acceptable to Japanese distributors.