Hong Kong's Securities and Futures Commission (SFC) has simplified the licensing process for overseas hedge fund managers looking to set up in the territory.

Hong Kong's Securities and Futures Commission has simplified the licencing process for overseas hedge fund managers looking to set up in the territory. Hong Kong is home to more hedge fund assets than any other Asian city, but is facing growing competition from Singapore.

The SFC said fund managers already licenced or registered in the US or UK would "benefit from an expedited licensing process", assuming they only serve professional investors and have good compliance records.

Staff nominated to be the "responsible officers" of hedge fund firms can also be exempted from the local regulatory examination if they fulfil the necessary criteria. A broader range of industry experience will also be recognised as satisfying the competence requirements, it added.

"These initiatives will make the licensing process easier for fund managers and more particularly for overseas hedge fund managers," said Alexa Lam, an SFC executive. "They are not intended to lower our regulatory requirements because we recognise that these contribute to Hong Kong's reputation amongst investors."

An SFC survey last year found there were 118 hedge fund managers operating in the territory with $33.5 billion under management.