Brown Brothers Harriman is partnering with Industrial & Commercial Bank of China in a deal that would allow the former to boost access to China if the local mutual fund market opens up to foreign investors.

Brown Brothers Harriman, the US-based securities and investment bank, has partnered with Industrial & Commercial Bank of China (Asia) Ltd, in a deal that would allow  the former to increase its access to China should the local mutual fund market open up to foreign investors, according to media sources.

Hong Kong and Beijing regulators are currently mulling proposed revisions to rules governing the mutual fund market in a bid to create a more global economy. Under the current law, foreign fund managers may reach out to Chinese investors only if they enter into joint ventures with local firms, reports said.

The proposed amendments include allowing Hong Kong-domiciled funds to be sold in the Mainland and vice versa, thereby positioning the territory as a gateway for international money managers. 

The deal with ICBC means that BBH will be able to offer back-office and other services to Hong Kong-domiciled funds, including trustee functions, administration, accounting, transfer agency and global custody services. Under the new rules, BBH will also gain an advantage in servicing asset managers looking to enter the Chinese market and forging partnerships with the market's dominant financial entities. 

Brown Brothers Harriman presently draws around 20 per cent of its revenues from Asia. According to latest figures from the Asset Management Association of China, the local mutual fund industry totalled RMB3.98 trillion ($563 billion) as at 30 May 2013. 

In February 2013, the China Securities and Regulatory Commission announced that it will be making changes to how fund managers may enter the mutual fund business to build an "open, inclusive and diverse wealth management industry."