Securities and Futures Commission

Securities / Derivatives

SFC Warns FX Brokers Against Servicing Mainland Clients

By Editors | 18/06/2019

Licensed corporations and their controlling entities are asked to review the legality of the services they offer, and immediately discontinue “unauthorised or illicit activities”.

Enforcement

SFC, CSRC to Facilitate Cross-Border Investigations

By Editors | 17/06/2019

The SFC and CSRC have agreed on a new cooperative framework to facilitate and coordinate cross-border investigations in “high impact or urgent cases”.

Securities / Derivatives

SFC Provides Additional Guidance on Sale of Complex Products

By Editors | 14/06/2019

Paragraph 5.5 of the Code of Conduct is only applicable for unsolicited purchases of complex products. Intermediaries can apply a risk-based approach to disclosures for repeat purchases.

Market Infrastructure

SFC Directs Prime Brokers on Regulatory Obligations

By Manesh Samtani | 11/06/2019

If prime services are carried out in Hong Kong, prime brokers are expected to comply with Hong Kong rules and regulations regardless of where the risk positions are booked.

Securities / Derivatives

SFC Asks Licensed Firms to Review Controls on Third-Party Deposits

By Editors | 01/06/2019

Senior management will be held accountable for failures to put in place effective policies, procedures and controls for handling third-party deposits and payments.

Enforcement

SFC Fines China Merchants Securities for Mishandling Client Money

By Editors | 31/05/2019

China Merchants Securities has received a second fine this week, this time for using funds from client trust accounts for purposes not allowed under the SFC’s Client Money Rules.

Market Infrastructure

Hong Kong, China Agree to Cooperate on Audit Regulation

By Editors | 28/05/2019

Hong Kong’s Financial Reporting Council will be able to access audit papers located in the mainland “through an effective mechanism and clear procedures”.

Enforcement

SFC Fines China Merchants Securities for IPO Sponsor Failures

By Editors | 28/05/2019

China Merchants Securities was a joint sponsor with UBS – fined in March – for the 2009 IPO of China Metal Recycling, which was found to have fabricated financial information.

Securities / Derivatives

SFC Investigation Disclosure Obligation Presents Challenge to Industry

By Manesh Samtani | 24/05/2019

The SFC has clarified aspects of the new disclosure obligation, but concerns remain over logistical and administrative burdens, say ASIFMA and Herbert Smith Freehills.