Advising Diginex on one of the first SFC licences regarding digital assets

13 Jun 2019

International law firm Simmons & Simmons has advised Diginex Asset Management (Hong Kong) Limited on obtaining the Securities and Futures Commission’s (SFC) regulatory approval for the issuance of one of the first SFC licences for type 4 (advising on securities) and type 9 (asset management) regulated activities in respect of digital assets.

Diginex Asset Management (Hong Kong) Limited will be among the first SFC-licensed entities permitted to act as a discretionary manager of its own digital assets fund. This regulatory approval follows a series of announcements by Hong Kong’s financial regulator on a new regime for the licensing of fund managers managing and distributing digital assets funds.

Gaven Cheong, a partner at Simmons & Simmons commented: “The work for this licensing application was intensive, but ultimately very rewarding. To be able to become pioneers in this field, both in terms of the structuring elements, and in guiding the client through a successful application to the SFC, has really cemented our team’s reputation as the thought leaders, innovators, and a leading authority in this booming new field of investment funds work”.

Simmons & Simmons acted as the licensed manager’s counsel in representations that were made to the SFC for regulatory approval of its licence for type 4 and type 9 regulated activities and as international lead counsel in drafting the underlying fund documentation.

We are proud to be among the first companies focused solely on digital asset strategies to receive these licenses. The Simmons & Simmons team were critical in helping us navigate the regulatory process to arrive at this watershed moment for our firm as well as the digital asset industry in Hong Kong”, said Richard Byworth, CEO of Diginex.

The Simmons & Simmons legal team comprised of funds and licensing specialists including Gaven Cheong (Partner, Simmons & Simmons), Michael Poon (Associate, Simmons & Simmons) and Miki Shi (Paralegal, Simmons & Simmons).

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