HK disclosure proposals tipped to harm local funds industry

Proposed changes to Hong Kong’s code of conduct rules for asset managers are expected to have a particularly negative impact on smaller private equity and hedge funds. There has been support for planned measures relating to disclosure of commission payments, covered in the second part of a Securities and Futures Commission (SFC) consultation paper issued on Wednesday. But the measures in part one, relating to fund managers’ code of conduct (FMCC) are more wide-ranging and potent…