SFC consultation conclusions on the management and disclosure of climate–related risks by fund managers

Addressing climate change is at the top of regulators’ agenda globally. In achieving Hong Kong’s carbon neutrality target before 2050 and in complying with its strategy on the management of climate-related risks for the asset management sector, the Hong Kong Securities and Futures Commission (“SFC”) has recently taken a significant step towards addressing such in the industry.

In August 2021, the SFC issued its consultation conclusions on the Management and Disclosure of Climate-related Risks by Fund Managers (the “Consultation Conclusions”), and will amend the Fund Manager Code of Conduct (“FMCC”) to require fund managers managing collective investment schemes (“CIS”) to take climate-related risks into consideration in their investment, risk management processes and make appropriate disclosures.

This publication provides an overview of the new regulatory requirements as a result of the Consultation Conclusions and the consequential changes to the FMCC. Mazars offers a wide range of financial advisory services to assist you in achieving compliance with the rules and regulations relevant to you.