Securities and Futures Commission

    Securities / Derivatives

    SFC Raises Standards for Client Facilitation Trades

    By Editors | 17/02/2018

    Client facilitation traders must be segregated from agency traders to protect client information and avoid conflicts of interest.

    Enforcement

    Interactive Brokers HK Fined for Trading System Failures

    By Editors | 15/02/2018

    The firm’s electronic trading system repeatedly submitted orders without regard for market liquidity and without effective price and volume controls.

    Enforcement

    Credit Suisse Hong Kong Fined $5mn

    By Editors | 10/02/2018

    Regulatory breaches include failures related to segregation of client securities, reporting of transaction, noncompliance with short selling requirements, unsuitability of investment products sold to clients.

    Market Infrastructure

    SFC Highlights Areas of Concern on Best Execution

    By Bradley Maclean | 08/02/2018

    Hong Kong SFC’s recent report on licensed corporations attitudes towards best execution practices shows there is much to be desired.

    AML / KYC

    Hong Kong Includes Non-Financial Entities in AML/CTF Amendments

    By Garima Chitkara | 08/02/2018

    Hong Kong AML/CTF rules will apply to financial transactions by non-financial entities; SFC requires licensees to screen client lists.

    Enforcement

    China’s Vicious Cycle – Household Debt, Mis-selling and Systemic Risk

    By Bradley Maclean | 01/02/2018

    Increased regulation in an effort to rein in personal borrowing could foster an attitude of ‘bare minimum compliance’ among banks, leading to future systemic risk.

    AML / KYC

    SFC Identifies Product Selling Compliance Failures 

    By Samuel Riding | 28/01/2018

    Licensed corporations should ensure client suitability when recommending fixed-income and structured products, particularly for complex and risky products.

    AML / KYC

    Hong Kong SFC Looks to Optimise Enforcement Action

    By Editors | 18/01/2018

    New guidance removes threat of criminal prosecution in cases of “non-serious” regulatory breaches and cooperation ‘above and beyond’ regulatory obligations.

    AML / KYC

    SFC Urges Licensees to File “Better Quality” Suspicious Transaction Reports

    By Editors | 17/01/2018

    Circular sent to firms following a feedback report issued by the Joint Financial Intelligence Unit.

    Capital / Liquidity

    HK SFC to Remove Corporate Treasury of non-Financial Firms from OTC Regulation

    By Samuel Riding | 21/12/2017

    Extensive consultation also proposes to expand risk mitigation requirements to ‘all licensed corporations’, rejects idea of regulatory threshold.

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