Emerging Prudential Risks

China Micro-lenders Ordered to Halt Business

27/11/2017

Murkiest of shadow banking sectors has extended short term credit of more than $150bn; extremely high rates, collection methods have led to ‘social problems’.

Conduct, Culture & Accountability

HK Regulators Warn on Conflicts of Interest in Product Sales

27/11/2017

HKMA, SFC say some intermediaries aren’t revealing related counterparties, not executing at best price, hide cheaper products.

Structural Regulation

Singapore, Abu Dhabi to Cooperate on Banking Supervision, Markets, Fintech

27/11/2017

Middle Eastern regulator has already approved one Singapore firm to provide credit services; Singapore firm won Fintech challenge.

Operational Risk

Indonesia Regulator to Set-up Regtech Surveillance System

27/11/2017

New technology to include integrated surveillance including early-warning system, data analysis and online regulatory reporting for financial institutions.

Resolution & Recovery

Vietnam to Allow Banks to Go Bankrupt

27/11/2017

Bankruptcy will be a last resort; Vietnamese banking sector has bad debts of 8.6% of total credit, 17.2% NPL ratio; Moody’s outlook ‘positive’

Conduct, Culture & Accountability

HSBC Private Bank Fined $50mn for Crisis-era Product Mis-selling

23/11/2017

Securities and Futures Appeals Tribunal says future fines will be similarly large and exceed ‘mere cost of doing business’.

Anti-Money Laundering

Southeast Asia CTF Group Established

23/11/2017

Group led initially by AUSTRAC and Philippines Anti-Money Laundering Council aims to disrupt sources of funding, movement and use of funds.

Trading & Investment

Hong Kong to Continue to Allow Mutual Fund Sales Commissions

20/11/2017

Securities and Futures Commission says Hong Kong is not ready to ban commissions and introduce a pay for advice model.

Alternative Markets

Korea to Launch New OTC Market for Professional Investors

20/11/2017

Existing OTC platform has not been successful due to institutional investors’ concerns about having to give details of their trading strategies.