Investment funds partner Jeremy Lam was featured in a Bloomberg article discussing how realtors are being investigated for Hong Kong overseas property sales.
According to Bloomberg, Hong Kong’s securities regulator, the Securities and Futures Commission (SFC) is now investigating whether realtors selling overseas properties are illegally marketing investment plans. Buyers argued that developments promoting guaranteed rental income are so-called collective investment schemes, which need SFC approval.
Jeremy commented that projects where sale-and-leaseback options are wrapped into the deal, as well as the guaranteed rental yields, risk being considered collective investment schemes. Guidance issued by the SFC in June 2016 about which deals might qualify as a collective investment scheme has put the real estate industry on notice, he concluded.
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