Can Hong Kong’s New LPF Regime Give Your Organization a Competitive Edge?
A Guide to Harnessing This New Option for Tax, Cost and Operational Benefits
The decision of where to domicile your funds is a critical choice. Given current financial market conditions, many CFOs and fund managers are taking a closer look at all aspects of operations to look for competitive advantages. In some cases, a change of jurisdiction may provide an economic edge.
But today’s economic conditions are not the only reason to consider a new domicile. Recent global regulatory trends are also prompting a widespread re-examination of locations.
The Cayman Islands has long been a favored jurisdiction. However, that may be changing due to increased regulatory scrutiny. According to an article by attorneys at Cadwalader, Wickersham & Taft LLP, the likelihood of CIMA reviews, resulting in regulatory actions and potentially administrative fines has increased significantly in the past five years.
Consequently, other competitive jurisdictions in Asia have emerged as alternatives. These locations include Singapore and Hong Kong.
Recently, the Hong Kong government has made new efforts to attract more Fund Managers. The first was the creation of a new LPF scheme. Then more recently, Hong Kong added a tax exemption on carried interest, making the jurisdiction even more attractive.
These recent developments have made Hong Kong a viable and competitive option that is already benefiting early adopters. Right now, we believe these advantageous features merit evaluating the benefits of domiciling (or re-domiciling) in Hong Kong.
As a full-service fund administrator, we are experienced in guiding clients through these transitions to minimize the impact on their day-to-day business. But we know that not everyone has access to that level of support. That’s why we wrote this guide.
We want you to have the information you need to make an informed choice. Please feel free to reach out to us with any questions or comments.
To your success,
THE LINNOVATE PARTNERS TEAM
