The Securities & Futures Commission has signed a letter of intent with Jersey's Financial Services Commission on the enhancement of regulatory co-operation. It will promote distribution of Hong Kong investment products in Europe and vice versa.

Both regulators aim to work towards the mutual recognition of investment products distributed in their jurisdictions.

This is the commission's seventh letter of intent, marking a progression in its established initiative to dismantle the barriers to the cross-border trading of investment products. It shows it has extended its intention to forge a more cohesive Asian market for investment products, including mutual funds.

Both authorities agree to strengthen regulatory co-operation, particularly in matters relating to the cross-border distribution and the supervision of investment products.

They will form a bilateral working group to work towards the achievement of the objectives set out in the letter.