Disclosure Requirements - Investment Funds - Hong Kong
Disclosure Category: 2
In the case of holding investment funds in Hong Kong, Clearstream Banking S.A (“CBL”) may be required under the laws and regulations of Hong Kong to disclose, upon request, information and holdings on CBL customers and ultimate beneficial owners.
In order to comply with the local legislation, customers holding Hong Kong investment funds or entering into transactions in the Hong Kong market must consent and are hereby deemed to consent to the required legal disclosure. Such consent includes the appointment of the requestor (for example, the Fund Manager, Transfer Agent, Regulator) as their attorney-in-fact, under power of attorney, to collect from CBL the required information to be disclosed. Customers who do not grant such authority cannot hold such investment funds or financial instruments in their accounts with CBL.
Customers are advised that under local laws and regulations, investment funds and its agents may require CBL, on request, to disclose information on CBL customers and ultimate beneficial owners. This is particularly the case where the fund is managed and / or distributed by a financial institution regulated by the SFC Hong Kong and is required to comply with local regulatory requirements.
Background and legal basis
Disclosure of information on CBL customers and ultimate beneficial owners may arise from the following Hong Kong laws and regulations:
- Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, Laws of Hong Kong)
- Drug Trafficking (Recovery of Proceeds) Ordinance (Cap. 405, Laws of Hong Kong)
- Organized and Serious Crimes Ordinance (Cap. 455, Laws of Hong Kong)
- United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575, Laws of Hong Kong)
- United Nations Sanctions Ordinance (Cap. 537, Laws of Hong Kong)
- Weapons of Mass Destruction (Control of Provision of Services) Ordinance (Cap. 526, Laws of Hong Kong)
- SFC’s Client Identity Rule
- The Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations)
- Section 29 of the Limited Partnerships Fund Ordinance (LPFO)
- Companies Ordinance (Cap. 622, Laws of Hong Kong) (CO) Code on Real Estate Investment Trusts (REIT Code).
Non-compliance with the disclosure requirements may result in the fund manager or its agent refusing acceptance of the proposed investment, and/or mandatory redemption of the existing holdings.
The customer undertakes to hold CBL harmless and to indemnify CBL from any loss, claim, liability or expense asserted against or imposed upon CBL as a result of the customer failure, whatever the failure, to comply with these disclosure requests.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 23 November 2020. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Disclosure Requirements do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.