Hong Kong’s Securities and Futures Commission (SFC) has issued new guidance for the fund industry.

It aims to help firms get ready for the revised Code on Unit Trusts and Mutual Funds (UT Code).

The revised code takes effect on 1 November 2026. According to the SFC, it brings the city’s retail fund rules in line with global standards and gives investors more protection.

This package includes circulars, frequently asked questions (FAQs) and updated guides. Together, they show how to seek approval for a new fund and how funds may use derivatives.

They also explain how the code applies to UCITS funds. These are retail funds set up under EU rules.

Under the revised code, funds will be able to use a Value-at-Risk (VaR) approach to manage their exposure to derivatives. VaR shows how much a portfolio could lose over a set time.

Other changes deal with how funds manage liquidity risk. Money market funds (MMFs) will face stronger rules on what they can invest in and what they must disclose.

A separate set of guidance tells existing and new funds how to move to the new rules.

To make funds more transparent, the regulator has also updated its key facts statement (KFS) templates for each type of fund.

Each template now asks for more detail on how a product is classed and on the tools a fund uses to manage liquidity.

“To maintain Hong Kong’s competitiveness as a premier asset and wealth management hub, we aim to support the industry in implementing and complying with Hong Kong’s strengthened retail fund regime,”

said Elisa Ng, Executive Director of Investment Products at the SFC.

The SFC confirmed the revised code earlier this month after a public consultation that opened in October 2025.

Featured image: Edited by Fintech News Hong Kong, based on image by Securities and Futures Commission (SFC) and topntp26 via Magnific.