Securities / Derivatives

Securities / Derivatives

Licensees Should Avoid Employee Allocations in Equity Raising – ASIC

By Editors | 21/12/2018

Following a review of allocations practices in equity raising transactions, ASIC said allocations to employees should be avoided as they can present conflicts of interest.

Securities / Derivatives

Licensed Corporations Should Carefully Review Internal Controls – SFC

By Editors | 20/12/2018

The SFC has reviewed brokers’ internal control systems and found they are not adequately protecting client assets, supervising their staff or incentivising good compliance culture.

Securities / Derivatives

China Exempts Mainland Investors from Tax on Hong Kong Funds

By Editors | 19/12/2018

Chinese regulators have applied a one year income tax exemption for mainland investors buying and selling Hong Kong funds through the mutual recognition of funds scheme.

Securities / Derivatives

SEBI Amends Risk Management Framework for Equity Derivatives

By Editors | 19/12/2018

Initial margins must be collected before the next trading day (T+0), but CCPs may allow 2 days after the last margin collection before close-out of equity derivative positions.

AML / KYC

Stock Connect to Introduce Investor ID Regime for Southbound Trading

By Editors | 17/12/2018

Launched on 26 September for northbound trading, the investor identification regime will be introduced for southbound trading by the end of Q1 2019.

Market Infrastructure

Plans to Launch HK-China ETF Connect Put on Hold – Report

By Editors | 14/12/2018

Trading and settlement issues will require “a very long period of discussion” to resolve, according to SFC chairman Tim Lui, adding that the focus will shift to enabling ETF cross listings.

Securities / Derivatives

Hong Kong to Extend Profits Tax Exemption to Local PE, Hedge Funds

By Editors | 14/12/2018

Under the existing framework, non-retail funds domiciled in Hong Kong are not exempt from profits tax, unlike their offshore-domiciled counterparts.

Securities / Derivatives

SEBI Allows Mutual Funds to Segregate Distressed Assets in Portfolios

By Editors | 13/12/2018

At its latest board meeting, SEBI approved a plan to allow mutual funds to create segregated portfolios for assets experiencing credit events, among a number of other proposals.

Market Infrastructure

SFC Concludes Consultation on Enhancements to OTC Derivatives Regime

By Editors | 13/12/2018

OTC derivatives participants will be subject to new risk mitigation requirements, as well as conduct requirements for dealings with group affiliates and related parties.