AML / KYC

SFC Provide Guidance on Online Client Onboarding

18/07/2018

Procedures to verify client identities include obtaining a digitally signed agreement and identity document copy, and the use of designated accounts in the client’s own name only for deposits and withdrawals.

Enforcement

MUFG Brokerage Unit Primary Dealer Status Suspended

17/07/2018

Dealer found to be manipulating prices in JGB futures trading, resulting in one-month suspension of the firm’s primary dealer status for one month.

Securities / Derivatives

Thailand to Expand Collateral Allowed for Margin Trading

16/07/2018

The SEC is consulting on allowing debt instruments, government securities, and mutual fund units as collateral for margin accounts at securities firms.

Enforcement

Japan’s Higashi-Nippon Bank Under Fire for Lending Misconduct

16/07/2018

The bank falsified customers’ financial records to boost loans, illicitly charged fees on loans in addition to interest, and used inappropriate financing methods involving over-lending to customers.

Securities / Derivatives

China Blocks Southbound Access to Dual-Class Stocks

16/07/2018

Shanghai and Shenzhen bourses release joint statement barring domestic investors from trading in foreign companies, stapled securities and stocks with weighted voting rights structures listed in Hong Kong.

Fintech / Regtech

S. Korea to Ease Rules on Cloud Storage of Customer Data

16/07/2018

FSC is expanding the types of information financial companies can store on cloud computing systems to include personal credit and identification information.

Enforcement

CBA Enters Enforceable Undertaking with ASIC for BBSW Manipulation

12/07/2018

CBA will engage an independent expert to assess changes to the banks’ policies, procedures, systems, controls, training, guidance and framework for the monitoring and supervision of employees and trading in Prime Bank Bills.

Crypto / Digital Assets

RISE HK: Regulation Needed to Clean Up Crypto Sector

12/07/2018

At the RISE conference in Hong Kong this week, industry participants called for regulation in the crypto sector “earlier rather than later”, to avoid backlash which could set the industry back.

Securities / Derivatives

China Brokers Face Loan Risks Amid Market Sell-Off – Report

11/07/2018

Equity-backed loans amount to 103% of net capital at Chinese brokerages; $2tn sell-off since January rapidly eroding value of collateral, reports Bloomberg.