Changes to Hong Kong’s professional investor rules - a practical insight

From 16 December 2011, the threshold tests for high net worth professional investors in Hong Kong are likely to become easier.  However, for financial institutions grappling with other regulatory changes affecting those investors, this may provide little comfort.

This alert explains the changes gazetted on 9 September 2011, their practical benefit and how they fit within the broader professional investor framework.

Background - a quick rundown of how the rules work now 

The Securities and Futures (Professional Investor) Rules (Cap 571D) (Professional Investor Rules) supplement the Securities and Futures Ordinance (Cap 571) (SFO), by providing special categories of 'professional investors' who are generally known in the market as "high net worth professional investors".