Securities and Futures Commission

Enforcement

SFC Bans Guosen Fund Manager for Violating Staff Trading Policies

By Editors | 29/05/2020

The fund manager concealed his beneficial interests, direct control and trading activities in securities accounts held at an external brokerage.

Securities / Derivatives

SFC to Allow Leveraged, Inverse ETFs Tracking Mainland Indices

By Editors | 24/05/2020

The SFC is prepared to initially only accept ‘swap-based’ L&I products tracking Mainland equity indices, with a leverage factor up to 2x, or negative 1x for inverse products.

Securities / Derivatives

Hong Kong: Securities Industry Subsidies to be Available from 25 May

By Editors | 20/05/2020

A cash subsidy of HK$50,000 will be available for securities firms ranked 15th onwards by market turnover, and HKD 2,000 for each individual licensed by the SFC.

Enforcement

SFC Fines Convoy Asset Management Over Bond Sales

By Editors | 20/05/2020

The firm failed to comply with product due diligence requirements, client suitability obligations and specific guidance on the sale of fixed income products.

Securities / Derivatives

HKMA, SFC to Jointly Review OTC Product Pricing at Intermediaries

By Manesh Samtani | 19/05/2020

The thematic review will assess the spreads intermediaries charge for non-exchange traded investment products such as bonds and structured products.

AML / KYC

SFC Reprimands, Fines Southwest Securities for AML/CFT Failures

By Editors | 18/05/2020

The brokerage failed to implement adequate and effective policies and procedures to mitigate AML/CFT risks associated with third party deposits.

SFC to Get Another Three Year Term from CEO Ashley Alder

By Editors | 18/05/2020

Alder was expected to step down in September, but has decided to stay on to ensure regulatory clarity through the current period of “exceptional stress”.

Enforcement

SFC Declines to Take Action Against HSBC for No-dividend Decision

By Editors | 15/05/2020

Some investors in HSBC alleged the bank failed to safeguard their interests. Others questioned whether the bank’s discussions with the Bank of England were disclosed in a timely manner.

ESG / Sustainability

Hong Kong Launches New Certification Scheme for ESG Funds

By Editors | 14/05/2020

The new green finance certification scheme for ESG funds is an extension of the HKQAA’s certification service for green funds, launched in September 2019.