Securities and Futures Commission

AML / KYC

SFC Provide Guidance on Online Client Onboarding

By Manesh Samtani | 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

Citigroup unit Fined HK$4mn for Alternative Liquidity Pool Failures

By Garima Chitkara | 11/07/2018

SFC found that due to an incorrect system setting for client profiles, over 130 clients had accessed alternative liquidity pool Citi Match without being assessed whether they were qualified investors.

Enforcement

CCB Hong Kong Unit Fined for IPO Sponsor Failures

By Manesh Samtani | 10/07/2018

SFC has fined CCB International Capital HK$24mn for failing to conduct reasonable due diligence for seafood company Fujion Dongya Aquatics in its 2014 listing.

AML / KYC

SFC Updates AML/CFT Guideline as FATF Assessment Looms

By JP Reimann | 06/07/2018

Proposals include streamlining of customer onboarding processes and a requirement to implement group-wide AML/CFT systems at overseas branches and subsidiaries.

Securities / Derivatives

SFC Imposes Enhanced Reporting Obligations on Authorised Funds

By Manesh Samtani | 04/07/2018

Enhanced reporting obligations to include data on liquidity profiles, subscription and redemption amounts, asset allocation, and securities financing/borrowing transactions.

Securities / Derivatives

Mainland Investors Gain Access to HK Stock Research

By Manesh Samtani | 04/07/2018

New rules enable better access to research reports and advice on HK-listed stocks, and opportunities for HK securities firms to distribute their research through mainland firms.

Securities / Derivatives

HK Exchange Tightens Rules on Backdoor Listings, Shell Activities

By Manesh Samtani | 04/07/2018

Hong Kong stock exchange proposes tightening reverse takeover rules and continuing listing criteria to address concerns about backdoor listings through shell companies by firms that may not otherwise qualify.

Market Infrastructure

Hong Kong SFC Releases 2017-18 Annual Report

By Manesh Samtani | 02/07/2018

Highlights for the year include progress on MIC regime, guidance on online trading platforms, and regulatory collaboration with other agencies.

Securities / Derivatives

Hong Kong Finalises OTC Derivatives Framework

By Garima Chitkara | 28/06/2018

HKMA and SFC published conclusions from their March 2018 consultation on LEI requirements, reporting norms and platform trading.