SFC to proceed with enhancements to Hong Kong’s retail fund regime code

On 7 Oct 2026 , The Securities and Futures Commission (SFC) has released its consultation conclusions and will roll out measures to strengthen Hong Kong’s regulatory framework for SFC-authorised retail funds. Revisions to the Code on Unit Trusts and Mutual Funds (UT Code) will take effect in November 2026, alongside consequential amendments to four other SFC codes covering pooled retirement funds, MPF products, investment-linked assurance schemes and REITs, which will be gazetted on 16 October 2026 and commence on 1 November 2026. The reforms introduce the Value-at-Risk (VaR) approach for retail funds’ derivative exposure, streamline requirements for management companies and feeder funds, and upgrade safeguards for liquidity risk and money market funds. Having considered industry feedback, the SFC adopted the proposals with appropriate tweaks and clarifications. Existing authorised funds will generally get a 12-month transitional period from the UT Code’s effective date, and the SFC will issue supplementary guidance, FAQs and updated templates to support implementation, reinforcing Hong Kong’s position as a leading international asset and wealth management centre.