Hong Kong

Enforcement

SFC Fines Credit Suisse $2.8m over Research Reports

By Editors | 20/06/2019

Credit Suisse has been fined $2.8m for failing to disclose investment banking relationships and market making activities in research reports on Hong Kong-listed securities.

Fintech / Regtech

HSBC Scraps Fees Ahead of Virtual Bank Launches

By Manesh Samtani | 20/06/2019

HSBC will remove below-balance, counter transaction and annual fees for most personal savings accounts as it braces for incoming competition from newly approved virtual banks.

Securities / Derivatives

Complex Group Arrangements Compound Margin Financing Risks: SFC

By Manesh Samtani | 19/06/2019

Deputy chief Julia Leung says the SFC is concerned that brokers are using complex trading arrangements to circumvent regulatory oversight, among other supervisory priorities.

Securities / Derivatives

HKEX Announces Launch of First Active ETF

By Editors | 19/06/2019

The introduction of active ETFs in Hong Kong is another step towards HKEX’s goal of becoming a hub for the issuance and trading of ETFs.

Securities / Derivatives

SFC Warns FX Brokers Against Servicing Mainland Clients

By Editors | 18/06/2019

Licensed corporations and their controlling entities are asked to review the legality of the services they offer, and immediately discontinue “unauthorised or illicit activities”.

AML / KYC

HK Banks Asked to Enhance Customer Interface of Account Opening

By Manesh Samtani | 18/06/2019

The HKMA has published the findings of its mystery shopper programme, which set out to assess customer interface aspects of bank account opening for SMEs and ethnic minorities.

Enforcement

SFC, CSRC to Facilitate Cross-Border Investigations

By Editors | 17/06/2019

The SFC and CSRC have agreed on a new cooperative framework to facilitate and coordinate cross-border investigations in “high impact or urgent cases”.

AML / KYC

HKMA Sets Out AML/CFT Best Practices for SME Onboarding

By Editors | 17/06/2019

A thematic review has concluded that authorised institutions have in general applied the risk-based approach to AML/CFT measures, but there is room for improvement.

Securities / Derivatives

SFC Provides Additional Guidance on Sale of Complex Products

By Editors | 14/06/2019

Paragraph 5.5 of the Code of Conduct is only applicable for unsolicited purchases of complex products. Intermediaries can apply a risk-based approach to disclosures for repeat purchases.