To enhance the wealth management market and relevant legal framework, and to promote the development of the investment fund industry, the Macao SAR Government has reformulated the “Investment Funds Law”. The law was promulgated on 28 July 2025 and will come into force on 1 January 2026.

The reformulated law was developed based on a comprehensive review of financial regulatory practices and experience, incorporating views and feedback from the financial sector, scholars and the advisory group of the Legislative Assembly, as well as with reference to relevant legislations in other jurisdictions. It aims to enhance regulatory convergence and connectivity between Macao and overseas fund markets, thereby attracting more overseas institutions to participate in the development of Macao's fund market.

The major highlights of the reformulated “Investment Funds Law” include:

1. Strengthening alignment with international regulatory regimes: Optimising regulations on related-party transactions for funds, introducing prudential limits for investments within the same corporate group, and refining regulations pertaining to real estate investment funds.
2. Enhancing investor protection: Strengthening information disclosure requirements for fund documentation and introducing provisions governing meetings of fund participants.
3. Removing obstacles to the operation and development of fund management: Abolishing the minimum number of investors and minimum fundraising threshold for the establishment of investment funds, removing the supervisory fees for investment funds, and allowing the establishment of investment fund management companies with a sole shareholder.
4. Optimising the development environment for fund management: Expanding the business scope of investment fund management companies, broadening the eligibility of custodians, introducing regulatory provisions for private investment funds, and establishing regimes for “Collective Investment Companies” and “Limited Partnership Funds”.

The implementation of the reformulated “Investment Funds Law” will stimulate demand for legal, accounting, valuation and other professional services, thereby supporting the growth of ancillary industries and employment opportunities. At the same time, it will effectively enhance the ecosystem for the local investment funds industry, foster the expansion of emerging financial services such as wealth management, and inject new momentum into Macao’s development of appropriate economic diversification. In addition, the reformulated law will promote and enrich local fund product offerings, providing the public with a wider range of investment options. Lastly, by aligning with international regulatory standards, the reformulated law will enhance investor protection, thereby supporting the sound and sustainable development of Macao’s financial sector.