The Hong Kong Investment Funds Association (HKIFA) said it was monitoring the investigations in the United States closely and would, if it was deemed necessary, take measures to safeguard investor interests. In talks with the association, the members have said that they are not aware of any similar cases in Hong Kong. A sound regulatory framework, together with good internal policies and guidelines, was in place in Hong Kong to ensure that the funds acted in the best interest of investors, Sally Wong, a director of the HKIFA. 'But a less tangible 'deterrent' is the reputation and goodwill of the fund manager which is key for retaining and gaining new clients. Once you lose that, it is very hard to regain,' she said. Hong Kong's fund industry is regulated by the Securities and Futures Commission. Daily monitoring is done by a trustee for a unit trust and a board in the case of a mutual fund.