12 February 2019
Octagonal PLC is pleased to announce that its wholly owned subsidiary Global Investment Strategy UK Limited (“GIS”) has received, via its subsidiary GIS FS (HK) Limited (the “Company”), confirmation from the Securities and Futures Commission of Hong Kong (“SFC”) that it has been granted an ‘approval in principle’ to carry on Type 1 regulated activity(ies) for professional clients under the Securities and Futures Ordinance (SFO). Type 1 regulated activity(ies) include the provision of dealing in securities, stock options, and bonds, but also includes the provision of providing other additional GIS core services such as safe custody and trade settlement.
The Company will look to commence operations as soon as it is practically possible, following formal approval which remains subject to the satisfaction of certain conditions, which the Board and Responsible Officers of the company will acknowledge. The board of the Company will be travelling to Hong Kong later this month to further progress the business plan.
Octagonal Chairman, John Gunn, commented, “This represents an exciting opportunity for the Group and I would like firstly to thank those team members who were involved in the application process for the considerable effort they have made to achieve this status from one of the World’s leading regulatory authorities.
The Company can shortly deliver GIS’ core services to the striving Asia-Pacific market through our newly opened Hong Kong office. Assets under management (AUM) of the hedge fund industry in AsiaPacific have been steadily increasing over the last three years. At the end of 2017, hedge fund managers based in the region held over $150 billion in AUM with Hong Kong being the top location for funds. According to a recently released industry World Wealth Report for 2018, the Asia-Pacific region confirmed its status as the current high net worth individual powerhouse, generating over 40% of all new high net worth individual (HNWI) wealth globally in 2017.
The report also showed a 12% growth in the HNWI population and a 14% rise in the region’s wealth during 2018, with equities remaining the preferred asset class for HNWI’s portfolios. As these numbers grow, many are organising their affairs through professional family offices which need support accessing global financial markets. Once GIS HK is established as a participant in the market we see this as an opportunity to offer our fintech driven cost-effective solutions to developing hedge funds, professional corporate and family offices in this flourishing region”.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014