Securities and Futures Commission

    Enforcement

    SFC Fines Mega International Commercial Bank Over Sales Practices

    By Editors | 07/05/2020

    Mega did not properly assess clients’ investment objectives, risk tolerance levels and knowledge of derivatives, or ensure the suitability of its fund recommendations for clients.

    Market Infrastructure

    HK Regulators Establish Green and Sustainable Finance Steering Group

    By Editors | 05/05/2020

    Initiated by the HKMA and SFC, the Steering Group will coordinate across other agencies and sectors to position Hong Kong as a global leader in green and sustainable finance.

    Securities / Derivatives

    HK Govt Under Fire for ‘False’ Justification of Broker Subsidies

    By Manesh Samtani | 03/05/2020

    Average daily market turnover jumped 54.5% in Q1 2020 compared to Q4 2019, which has led to a corresponding increase in brokerage revenues and profits.

    SFC Offers Guidance on Cyber Risk of Remote Office Arrangements

    By Editors | 29/04/2020

    In a circular, the SFC sets out examples of controls and procedures to help licensed corporations protect their internal networks and data.

    SFC, Competition Commission Agree to Cooperate, Share Information

    By Editors | 28/04/2020

    The SFC and the Competition Commission can consult each other on issues with significant implications for the other and share information where appropriate.

    Securities / Derivatives

    Oil Volatility Prompts SFC Call for Vigilance, Contingency Plans

    By Editors | 24/04/2020

    Commodity futures brokers should control exposures to clients and pre-arrange for contingent funding and capital support to be available from group companies or shareholders.

    Enforcement

    Hong Kong Exchange Censures Ding Yi Feng Executives

    By Editors | 23/04/2020

    Three former non-executive directors of China Ding Yi Feng were censured for breaching the listing rules and disclosure obligations.

    AML / KYC

    SFC Fines BOCOM International Securities for “Serious” Breaches

    By Editors | 20/04/2020

    The brokerage did not have effective controls to identify third party deposits, and “extensive deficiencies” were found in its handling of margin lending and margin calls.

    Securities / Derivatives

    SFC Seeks Certainty on ETF Market Making Continuity

    By Editors | 18/04/2020

    ETF management companies should procure more than one market maker, or secure arrangements for alternative market makers to quickly step in if there is a disruption.

    Securities / Derivatives

    SFC Raises Concerns with Leveraged Foreign Exchange Trading

    By Editors | 10/04/2020

    Brokers reported that more than 60% of clients who engage in leveraged foreign exchange trading made net trading losses, some in excess of HK$1mn.

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