SFC proposes changes to REIT and listed CIS regulation

On 8 January the SFC released a series of proposals to extend the Codes on Takeovers and Mergers and Share Repurchases (Codes) to real estate investment trusts (REITs) and to apply the market misconduct and disclosure of interests provisions in the Securities and Futures Ordinance (SFO) to listed collective investment schemes (CISs).

Martin Weatley, SFC’s Chief Executive Officer said  "We believe that the proposals represent a step forward in defining a regulatory infrastructure that better protects the interests of investors and assists the further development of Hong Kong's REIT market"

The first part of the proposals calls for amendments to the REIT Code including aligning the control structure of REIT with that of listed companies, and to the Codes including introducing a set of REIT Guidance Notes to the Codes.

The second part seeks to clarify and enhance the regulation of market conduct regarding dealings in listed CIS by applying market misconduct regulations and disclosure of interest requirements.

Public comments are due by 8 March 2010. For further information please use the following link REIT and Listed CIS  regulation change