Securities and Futures Commission

Crypto / Digital Assets

Hong Kong, Luxembourg Sign Mutual Recognition of Funds Agreement

By Editors | 16/01/2019

Eligible general equity, bond or mixed funds authorised by the SFC can seek authorisation to be marketed to retail investors in Luxembourg.

Capital / Liquidity

SFC Fines FWD Life for Noncompliance with Key Personnel Requirements

By Editors | 09/01/2019

FWD Life also failed to maintain satisfactory internal controls and written compliance procedures as required under the SFC Code on MPF Products and the Fund Manager Code of Conduct.

Securities / Derivatives

Hong Kong SFC Launches New Online Submission Portal

By Editors | 07/01/2019

All functions and submission services available on the existing SFC Online Portal will be migrated to the new platform in phases.

Enforcement

Hong Kong Asset Manager Fined for Wash Trading

By Editors | 28/12/2018

The asset management firm was both the buyer and seller in a transaction between two of its brokers, which the SFC deemed was a wash trade.

Securities / Derivatives

Licensed Corporations Should Carefully Review Internal Controls – SFC

By Editors | 20/12/2018

The SFC has reviewed brokers’ internal control systems and found they are not adequately protecting client assets, supervising their staff or incentivising good compliance culture.

AML / KYC

Stock Connect to Introduce Investor ID Regime for Southbound Trading

By Editors | 17/12/2018

Launched on 26 September for northbound trading, the investor identification regime will be introduced for southbound trading by the end of Q1 2019.

Market Infrastructure

Plans to Launch HK-China ETF Connect Put on Hold – Report

By Editors | 14/12/2018

Trading and settlement issues will require “a very long period of discussion” to resolve, according to SFC chairman Tim Lui, adding that the focus will shift to enabling ETF cross listings.

Securities / Derivatives

Hong Kong to Extend Profits Tax Exemption to Local PE, Hedge Funds

By Editors | 14/12/2018

Under the existing framework, non-retail funds domiciled in Hong Kong are not exempt from profits tax, unlike their offshore-domiciled counterparts.

Market Infrastructure

SFC Concludes Consultation on Enhancements to OTC Derivatives Regime

By Editors | 13/12/2018

OTC derivatives participants will be subject to new risk mitigation requirements, as well as conduct requirements for dealings with group affiliates and related parties.