The Legislative Assembly (AL) yesterday passed the outline of a government-initiated bill regulating the setting-up and operation of investment funds and fund management companies.
The bill aims to enhance the flexibility in the setting-up and operation of fund management companies, strengthen the protection for investors, and promote the setting-up of privately offered funds.
The bill proposes to establish a new law regulating investment funds and fund management companies to replace the current decree law enacted back in 1999 when Macau was still under temporary Portuguese administration.
Secretary for Economy and Finance Lei Wai Nong introduced the outline of the bill during a plenary session in the legislature’s hemicycle yesterday.
After yesterday’s passage of its outline, the bill will be passed to one of the legislature’s standing committees for an article-by-article review, after which it will be resubmitted to another plenary session for its second and final debate and article-by-article vote.
Lei underlined that the government is promoting the development of Macau’s modern finance with the aim of strengthening its financial sector’s contribution to supporting the real economy.
Lei noted that several pieces of financial legislation have been enacted over recent years, adding that the government is currently working on drafting a number of other bills concerning the city’s financial industry, including one whose drafting has been completed, i.e., the bill on investment funds whose outline was passed by yesterday’s plenary session.
The policy secretary also underlined that over recent years Macau has created various financial infrastructure projects promoting the development of its financial industry.
Lei noted that asset management is an important component of the modern financial industry, adding that over recent years the government has permitted a number of investment fund management companies to operate in Macau.
Lei said that with the aim of promoting the development of investment fund business activities in Macau, strengthening coordination between Macau’s legal system regulating investment funds and the respective regulations of neighbouring countries and regions in order to attract institutions from outside Macau to participate in the local market, as well as promoting the connection between Macau’s fund market and the international fund market, the government has drafted the bill after consulting representatives from the city’s financial sector as well as experts and scholars in the field and referencing the respective laws in a number of countries and regions.
According to Lei, the bill proposes to expand the scope of business activities that investment fund management companies will be allowed to engage in, enhancing the flexibility in their setting-up and operation.
Lei said that in reference to the relevant experience in neighbouring countries and regions, the bill proposes to specify statutory requirements for the setting-up and operation of privately offered investment funds, with the aim of promoting their development in Macau.
The bill also aims to enhance the protection for investors, such as by proposing tougher statutory requirements for information disclosure for investment fund prospectuses and investment portfolios.
Also addressing yesterday’s plenary session, Macau Monetary Authority (AMCM) President Benjamin Chan Sau San said that over the past five years, a total of 15 financial institutions from outside Macau have launched their businesses here.
