Approval of Pooled Investment Funds 匯集投資基金的核准
Distinguish the investment layers: a constituent fund belongs to an MPF scheme, while an approved pooled investment fund (APIF) may serve as an underlying investment. A constituent fund that does not operate as an internal portfolio may invest in pooled investment funds approved by the MPFA and authorised by the SFC.
The two bodies have different roles. The MPFA assesses pooled investment funds against the Mandatory Provident Fund Schemes (General) Regulation and the [Code on MPF Investment Funds](https://www.mpfa.org.hk/en/-/media/files/information-centre/legislation-and-regulations/codes/code_on_mpf_investment_funds.pdf); the SFC grants authorisation. Obtaining approval or authorisation from just one body does not satisfy both requirements.
The SFC's authorisation requirements depend on whom the fund is offered to. A pooled investment fund offered only to MPF schemes must meet the requirements of the SFC Code on MPF Products.
For a pooled investment fund structured as a unit trust and offered to both MPF service providers and retail investors, SFC authorisation involves the applicable requirements of both the [SFC Code on MPF Products](https://www.sfc.hk/en/Rules-and-standards/Codes-and-guidelines/Codes/SFC-Code-on-MPF-Products) and the Code on Unit Trusts and Mutual Funds. Offering the fund to retail investors does not replace the MPF product requirements.
Types of Pooled Investment Funds 匯集投資基金的種類
A constituent fund may invest in one or more APIFs. The possible forms are insurance policies, unit trusts and mutual funds, although APIFs currently take the form of unit trusts or insurance policies. Distinguish the possible forms from those currently used; every APIF must be governed by Hong Kong law.
A pooled investment fund structured as a unit trust requires SFC authorisation as a collective investment scheme under section 104 of the Securities and Futures Ordinance. MPFA approval does not replace this authorisation. [SFC Code on MPF Products](https://www.sfc.hk/en/Rules-and-standards/Codes-and-guidelines/Codes/SFC-Code-on-MPF-Products)
An APIF structured as an insurance policy must be a Class G policy issued by an authorised insurer. These long-term policies provide retirement-related benefits with a guarantee on capital or return; this does not require both capital and return to be guaranteed.
The insurance policy also requires SFC authorisation as a collective investment scheme under section 104 of the Securities and Futures Ordinance. Relevant trustees must include additional disclosure of the associated risks in their scheme offering documents, so an authorised insurer's involvement and a guarantee do not remove the authorisation or additional risk disclosure requirements.
Practice
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