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Circular to Management Companies of SFC-authorised Exchange Traded Funds (“ETFs”) – List of Potential Events Triggering Ongoing Disclosure

  1. Under 11.1B of the Code on Unit Trusts and Mutual Funds (“UT Code”), management companies should provide holders with reasonable prior notice, or inform holders as soon as reasonably practicable of any information concerning the scheme which is necessary to enable holders to appraise the position of the scheme.

  2. Under Appendix E3 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“Listing Rules”), a scheme shall inform the Exchange immediately of, among other things, any other information necessary to enable the holders of interests to appraise the position of the scheme and to avoid the establishment of a false market in the interests of the scheme. [Amended]

  3. To assist management companies of ETFs to comply with the disclosure obligations under the UT Code and Listing Rules and without prejudice to the notification obligation under 11.1A of the UT Code, the following are non-exhaustive examples of events that may trigger the above on-going disclosure requirements where any of them would have a material impact on an ETF: [Amended]

  4. Please note that the obligations to disclose information depend upon the facts of each case and as the management company of the ETF, you have the duty and should make your own judgements as to what and when such information is required to be disclosed.  The above examples are not meant to be exhaustive.

  5. You are welcome to contact the relevant case officer of the SFC and the HKEX should you have any questions on the above.

Investment Products Division Listing Division Securities and Futures Commission The Stock Exchange of Hong Kong Limited

 1 Unless otherwise specified, the term “ETF” used in this circular shall cover passive ETF, active ETF, leveraged product, inverse product and fund with listed share class.

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