Securities and Futures Commission

AML / KYC

Cryptocurrency in APAC: Opportunity, Challenge, and Risk

By David Liu | 06/06/2018

Financial institutions are at risk from the inherently opaque nature of cryptocurrency transactions, and require robust compliance programs to mitigating legal, financial, reputational, and regulatory risks.

Enforcement

SFC Fines Hang Seng Asset Management Arm

By JP Reimann | 01/06/2018

Hang Seng Investment Management fined HK$3mn for cash management failures involving SFC-authorised funds it manages from 2010 to 2016.

Enforcement

SFC Fines Wealth Manager Noah Holdings for Internal Control Failures

By JP Reimann | 30/05/2018

The firm was fined HK$5mn for failures in client risk profiling and product due diligence, resulting in potentially unsuitable investment products being sold to clients.

Securities / Derivatives

SFC Introduces New Disclosure Rules for Discretionary Account Trading

By JP Reimann | 23/05/2018

SFC requires intermediaries to disclose incentives, trading profits arising from third party products; amendments to come into effect on 25 November 2018.

Securities / Derivatives

SFC Expands Professional Investor Rules

By JP Reimann | 21/05/2018

SFC’s new professional investor rules will expand categories, amend qualification threshold starting from 13 July 2018.

Securities / Derivatives

Growing Liquidity Requirements, a Regulatory Hazard for Asset Managers

By Peter Guy | 21/05/2018

Asset managers resist bank-like capital and liquidity regulations being contemplated by regulators. But new requirements appear unavoidable given recent regulatory trends.

Enforcement

SFC Fines Citigroup $7.3mn For IPO Sponsor Failures

By Manesh Samtani | 21/05/2018

The regulator fined Citigroup for due diligence and staff supervision failures relating to IPO work in 2009; no constraints placed on its business activities.

Securities / Derivatives

Hong Kong Allows Corporate Setup for Investment Funds

By JP Reimann | 18/05/2018

SFC’s new open-ended fund company (OFC) regime will allow investment funds to set up under corporate structures starting from 30 July 2018.

Market Infrastructure

Hong Kong SFC Releases Further Details on Licensing Regime

By Garima Chitkara | 17/05/2018

SFC bulletin highlights areas of concern the regulator considers in granting and rejecting licenses as well as updates to MIC regime; SFC also announced a forthcoming thematic review of MIC regime compliance.