Securities & Futures Commission of Hong Kong

Exempt status

Exempt status regime has been devised for groups which are regularly involved in transactions that are governed by the Codes on Takeovers and Mergers and Share Buy-backs (the Codes) in a corporate finance capacity. The Takeovers Executive is prepared to grant exempt status, in appropriate cases, to fund managers and principal traders whose activities are carried on separately from and are not influenced by corporate finance operations.

The related exemption means that the Takeovers Executive does not normally regard the relevant fund manager or principal trader as acting in concert with its company group’s corporate clients.

Exempt fund managers

An exempt fund manager (EFM) is a person who manages investment accounts on a discretionary basis and has obtained an exempt status for the purposes of the Codes.  

How to apply

List of fund managers with EFM status

Exempt principal traders

An exempt principal trader (EPT) is a person who trades as a principal in securities for the purpose of certain trading activities allowed by the Takeovers Executive during an offer period and who has obtained an exempt status for the purposes of the Codes.

How to apply

List of principal traders with EPT status

For further information regarding EFMs and EPTs, please see Practice Note 9.

3.6231 s