Securities and Futures Commission

Securities / Derivatives

SFC Warns Against Disguised Margin Financing

By Editors | 06/08/2018

Suspected margin financing arrangements involve unlicensed affiliates of licensed corporations or third parties who appear to be engaging in securities margin financing without an SFC licence in order to circumvent regulatory requirements.

Market Infrastructure

SFC to Assess Licensed Firms for FRTB Adoption Readiness

By Manesh Samtani | 06/08/2018

Pending an update from the Basel Committee on FRTB, the SFC will assess the readiness of LCs to adopt the internal models approach for market risk based on the Basel II.5 framework.

Market Infrastructure

Hong Kong’s Revised OFC Regime Goes Into Effect

By Garima Chitkara | 30/07/2018

Hong Kong’s new open-ended fund regime that will allow OFCs to be set up as corporates takes effect on 30 July.

Fintech / Regtech

Technology and Regulation: Rapidly Reforming the Funds Industry

By Leo Chen | 25/07/2018

The Asian funds industry is undergoing a period of fundamental change and challenge. This is a result of shifting investor demographics, rapid technological development, the emergence of technology firms and tightening regulation.

Enforcement

SFC Fines HSBC Unit $1.2mn on Bond Solicitations

By Mark Pufpaff | 23/07/2018

HSBC Broking Securities failed to conduct proper due diligence on bonds recommended to clients and to implement effective systems ensure suitability with client needs.

Enforcement

SFC Bans Former StanChart Securities Executive for Three Years

By Mark Pufpaff | 20/07/2018

Joseph Hsu Kay Hing failed to exercise appropriate care in his responsibilities as sponsor principal and responsible officer during the supervision of a 2009 listing application.

AML / KYC

SFC Goes Live with Amended Professional Investor Rules

By Manesh Samtani | 19/07/2018

Holding companies of existing qualified professional investors will gain status as professional investors; intermediaries must obtain confirmation that their shareholders are notified of the change.

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.