SFC enhances guidance for authorised funds with exposure to private market assets

On 3 September 2026, the SFC issued a circular setting out guidance for SFC‑authorised funds holding private‑credit and private‑equity (private‑market‑asset) exposures. Amid market developments and limited retail‑investor familiarity with often opaque, layered indirect exposures to such assets, fund managers are required to deliver clear, complete and balanced disclosures on relevant features and risks. The SFC may impose heightened scrutiny and complex‑product classification (triggered at ≥50% NAV total direct‑and‑indirect private‑market‑asset exposure) with stricter distribution‑suitability rules, and expects managers of existing affected funds to review and update offering documents promptly. Drawing on industry consultation feedback, the guidance bolsters Hong Kong’s retail‑fund regulatory regime to support informed investor decision‑making, while applicable investment restrictions under the Code on Unit Trusts and Mutual Funds remain in force.