The U.K. Financial Conduct Authority, or FCA, and Hong Kong's Securities and Futures Commission, or SFC, signed a memorandum of understanding to recognize each other's covered funds and covered asset management firms.

The deal will enable cross-border distribution of the U.K.'s retail funds and Hong Kong's public funds through an efficient and regulated process.

The memorandum of understanding will also create a framework to facilitate regular communication, supervisory cooperation and the exchange of information between the FCA and SFC.