SFC Fund Rule Amendments Aim to Expand Retail Access to Private Credit

SFC fund rule amendments could reshape Hong Kong’s asset management landscape as the Securities and Futures Commission launched a three-month consultation to widen retail access to private credit and increase derivatives flexibility. Under the proposed revisions to the Code on Unit Trusts and Mutual Funds, authorised unlisted mutual funds may invest up to 50% of assets in private credit and other illiquid holdings, up from 15%, aligning with global standards. The SFC said the changes would broaden investor choice and attract more US and European fund managers, reinforcing Hong Kong’s position as a global funds hub. The proposal follows a February move allowing listed closed-end funds unlimited exposure to private equity and alternatives.