HKSI Paper 12 Overview of the asset management industry question: fund classified from a Hong Kong

HKSI Paper 12Overview of the asset management industry

Jade Asia Fund is a UCITS established in Luxembourg. It is authorised by the SFC for sale to the Hong Kong public, and its investment manager is a Type 9 licensed corporation in Hong Kong. How is the fund classified from a Hong Kong point of view?

A An onshore fund, because it is authorised by the SFC for public offering
B An onshore fund, because it is managed by a Hong Kong licensed corporation
C An offshore fund, because it is domiciled outside Hong Kong
D Neither, because only unauthorised funds are classed as onshore or offshore

Show the answer and explanation

Answer: C. An offshore fund, because it is domiciled outside Hong Kong

Onshore and offshore describe a fund's domicile: the place and law under which it is constituted. An onshore fund is domiciled in Hong Kong (a unit trust under Hong Kong law, an OFC or an LPF); an offshore fund is domiciled elsewhere. A Luxembourg UCITS is therefore offshore even when it is SFC-authorised and managed from Hong Kong. The UT Code applies to schemes 'established in Hong Kong or elsewhere' (1.1), so SFC authorisation is open to both. The SFC's Asset and Wealth Management Activities Survey uses this same test: it reports 'Hong Kong-domiciled' SFC-authorised funds (onshore) apart from those domiciled elsewhere. Where the manager sits and whether the fund is authorised do not change its domicile. Source: UT Code 1.1, 1.2; SFC Asset and Wealth Management Activities Survey 2025 (July 2026), section IV (as at October 2026).

Common mistake

Classifying a fund by where it is managed or sold. Domicile decides onshore or offshore.

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Original study material mapped to the public HKSI Paper 12 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.