Securities and Futures Commission

    Enforcement

    IPO Sponsors, Underwriters Are ‘Guardians of Market Quality’: SFC

    By Manesh Samtani | 22/10/2019

    The SFC expects sponsors to conduct sufficient due diligence to properly understand and assess the companies seeking to be listed, and to ensure red flags are properly followed up.

    AML / KYC

    Stock Connect to Launch Southbound Investor ID Regime “Soon”

    By Editors | 12/10/2019

    The launch of the investor identification regime for southbound trading will mark the first time mainland investors will have their personal information shared with Hong Kong’s regulator.

    Securities / Derivatives

    UPDATED – SFC to Raise Investor Compensation Limit

    By Editors | 09/10/2019

    Respondents to an April 2018 consultation strongly supported an increase in the compensation limit, among other proposals, which the SFC expects to implement in early 2020.

    Crypto / Digital Assets

    SFC Details Rules for Virtual Asset Fund Managers

    By Manesh Samtani | 07/10/2019

    The SFC has published new requirements for virtual asset fund managers, relating to capital, best execution, liquidity and custody, among other areas.

    Enforcement

    SFC Fines SEAVI Advent Ocean Private Equity HK$1mn

    By Editors | 07/10/2019

    The SFC has reprimanded and fined SEAVI Advent Ocean Private Equity for allowing unlicensed individuals to perform regulated functions, in breach of the Code of Conduct.

    Securities / Derivatives

    IOSCO Publishes Updates on MMF, Securitisation Regulation

    By Editors | 03/10/2019

    The reports describe progress by IOSCO members to adopt legislation, regulation and other policies covering MMF and securitisation, considered priority reform areas by the G20.

    Capital / Liquidity

    SFC Offers Additional Guidance on New Margin Financing Rules

    By Editors | 02/10/2019

    New FAQs make clear that deviations from the new rules after 4 October will not automatically be seen as noncompliance or result in disciplinary action.

    Securities / Derivatives

    Hong Kong to Regulate Fund Trustees, Custodians

    By Editors | 30/09/2019

    Fund trustees and custodians in Hong Kong are not subject to any licensing regime or ongoing supervision. The SFC proposes to regulate them under a new type of regulated activity, RA 13.

    Capital / Liquidity

    SFC to Push Ahead with New Cap on Margin Financing

    By Editors | 30/09/2019

    From 4 October, margin loans will be capped at five times capital, despite appeals from brokerage firms to postpone the new rules by one year.

    Securities / Derivatives

    SFC Imposes Lifetime Ban on Former BoCom Banker

    By Editors | 24/09/2019

    The ban follows an August 2018 conviction, where the former banker was found guilty of soliciting illegal commission payments from a client for stock trading profits.

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