HKSI Paper 12 Overview of the asset management industry question: fund's investment manager under Cap

HKSI Paper 12Overview of the asset management industry

Greenwood GP Ltd, a private company incorporated in Hong Kong, is the general partner of a proposed limited partnership fund. Which of the following could NOT be appointed as the fund's investment manager under Cap. 637?

A Willow Capital Inc, an overseas company registered here as a non-Hong Kong company
B Mr Tan, aged 40, who lives in Singapore and is not a Hong Kong resident
C Greenwood GP Ltd itself, acting as both general partner and investment manager
D Ms Lau, aged 35, a Hong Kong resident who manages private equity investments

Show the answer and explanation

Answer: B. Mr Tan, aged 40, who lives in Singapore and is not a Hong Kong resident

Section 20(1) of the Limited Partnership Fund Ordinance requires the general partner to appoint an investment manager to carry out the fund's day-to-day investment management, and it may be the general partner itself or another person. Section 20(2) limits who may be appointed: a Hong Kong resident aged at least 18, a company, or a registered non-Hong Kong company. Greenwood GP Ltd is a company and may appoint itself. Ms Lau is a Hong Kong resident over 18. Willow Capital is a registered non-Hong Kong company. Mr Tan is an individual who is not a Hong Kong resident, so he cannot be appointed in his own name. Source: Limited Partnership Fund Ordinance (Cap. 637) s.20(1)-(2) (as at October 2026).

Common mistake

Thinking the general partner cannot double as investment manager. Cap. 637 expressly allows it; the residence rule bites on individuals.

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