China Amends Draft Regulation on Cross-Border Data Transfer

We have just received a revised draft of China’s Measures on Security Assessment of Cross-border Data Transfer of Personal Information and Important Data (Measures). We have outlined the changes made to the draft Measures first issued on 11 April 2017 for public comment (see our previous briefing and blog post). The revised draft is likely to be the … Continue Reading

Infrastructure listings in Hong Kong – easier times to come?

With the PRC’s Belt and Road Summit 2017 having just taken place, one of the key messages from the summit was that, even with over US$100 billion in funding pledges from the PRC government and other participating countries, greater private sector participation will be required to bring the Belt and Road projects into fruition. With … Continue Reading

Fintech and Regtech Co-operation Agreement between Hong Kong and the UK

The Hong Kong Securities and Futures Commission (SFC) and the United Kingdom Financial Conduct Authority (FCA) signed a Co-operation Agreement on 12 May 2017 to facilitate innovation in financial services in their respective markets – the latest development in the trend of cross-border collaboration among regulators in the Fintech and Regtech space. Each of the … Continue Reading

Hong Kong: SFC consults on proposed measures to improve cyber security for internet trading of securities in Hong Kong

A two-month consultation on proposed measures to reduce and mitigate cyber security risks associated with internet trading of securities in Hong Kong (the Consultation) was launched on 8 May 2017 by the Securities and Futures Commission (the SFC). The Consultation follows a recent review by the SFC of resilience of brokers in Hong Kong to … Continue Reading

SFC launches consultation on proposed guidelines on online distribution and advisory platforms

On 5 May 2017, the Securities and Futures Commission (SFC) issued a consultation paper on the proposed guidelines on online distribution and advisory platforms (Proposed Guidelines). The Proposed Guidelines are a response to the recent expansion of different forms of online platform, which offer a wide range of investment services and functions to various investors. … Continue Reading

China foreign-invested banks: Circular removes restrictions and clarifies uncertainties

On 10 March, 2017, the China Banking Regulatory Commission (CBRC) issued the Circular of the General Office of CBRC on Matters Concerning the Operation of Certain Businesses by Foreign-invested Banks (the Circular) which took immediate effect. The Circular removed certain restrictions and clarified uncertainties concerning the business operation of foreign-invested banks (FI Banks, which include … Continue Reading

Hong Kong Resolution Regime for Financial Institutions – one step closer to commencement

On 6 April 2017, the Government and financial regulators in Hong Kong, namely the Hong Kong Monetary Authority (HKMA), the Insurance Authority (IA) and the Securities and Futures Commission (SFC), published their conclusion on the public consultation relating to the protected arrangements regulation, bringing the Financial Institutions (Resolution) Ordinance (Chapter 628 of the Laws of … Continue Reading

Hong Kong SFC’s Manager-In-Charge Regime – are you on track?

Hong Kong’s new Manager-In-Charge regime comes into effect on 18 April 2017. This introduces measures to heighten the accountability of the senior management at licensed corporations and increase awareness of their obligations. The Manager-In-Charge Regime impacts all corporations licensed by the Securities and Futures Commission and their senior management in Hong Kong. Senior management outside … Continue Reading

Uncleared OTC ‎Derivatives: New variation margin requirements live as of 1 March

Norton Rose Fulbright has been engaging globally with clients to assist them to update their existing derivatives documentation to ensure regulatory compliance with the varying local implementation of the BCBS-IOSCO final report on “Margin requirements for non-centrally cleared derivatives”. Final rules on margining have been in place for a while in a number of jurisdictions requiring … Continue Reading

Hong Kong securities regulator launches consultation on proposed amendments to the Professional Investor Rules

The Securities and Futures Commission (the SFC) recently launched a public consultation process in respect of proposed amendments to the Securities and Futures (Professional Investor) Rules (Chapter 571D of the Laws of Hong Kong) (the Professional Investor Rules).  The public consultation process was launched on 1 March 2017. The principal changes proposed in respect of … Continue Reading

SFC and SEC enter into a memorandum of understanding to enhance supervision of cross-border regulated entities

To facilitate mutual assistance in the supervision and oversight of cross-border regulated entities, the Securities and Futures Commission (SFC) and the United Stated Securities and Exchange Commission (SEC) have recently entered into a memorandum of understanding (MoU). The MoU is a response to the growing globalisation of financial markets and the increased cross-border activities of … Continue Reading

China financial services regulation: Increased supervision of large-sum and suspicious transactions

The People’s Bank of China has issued amended measures on the reporting of large-sum and suspicious transactions. The amended measures will take effect on 1 July 2017. The amended measures substantially revise the existing regime and impose greater obligations on financial institutions in the reporting of large-sum and suspicious transactions. Under the amended measures, financial … Continue Reading

Hong Kong: Changes to the Guidance Note on Corporate Governance

What you and your board need to know Changes to GN10 From 1 January 2017, the first phase of changes to the Hong Kong Insurance Authority’s Guidance Note on the Corporate Governance of Authorized Insurers (GN10), will take effect. The second phase of changes (which are more substantive) will take effect from 1 January 2018, … Continue Reading

Hong Kong Monetary Authority and UK’s Financial Conduct Authority sign fintech co-operation agreement

Earlier this week, on 7 December 2016, at the London–Hong Kong Financial Services Forum, the Hong Kong Monetary Authority (HKMA) and UK Financial Conduct Authority (FCA) signed an agreement undertaking to collaborate on the promotion of financial innovation in the UK and Hong Kong. To facilitate this goal, the HKMA and FCA will work together … Continue Reading

Fintech Facilitation Office (FFO) launches white paper on distributed ledger technology

On 11 November 2016, the ‘Hong Kong Applied Science and Technology Research Institute’s White Paper on Distributed Ledger Technology’ (the White Paper) was commissioned by the FFO of the Hong Kong Monetary Authority (HKMA) to investigate the potential applications of distributed ledger technology (DLT). Although fintech is already widely used in areas such as internet … Continue Reading

SFC launches consultation into asset management regulation and point-of-sale transparency

In an effort to strengthen Hong Kong’s status as a leading asset management centre, on 23 November 2016 the Securities and Futures Commission (SFC) launched a three-month consultation into proposals to amend the Fund Manager Code of Conduct (FMCC) and the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures … Continue Reading

Singapore FinTech: Regulatory Sandbox open for applications

Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), has launched guidelines for its FinTech Regulatory Sandbox, which is now open for applications. The regulatory sandbox is available to financial institutions or any interested firm that wishes to experiment with innovative financial services in a production environment but within a defined space and duration. The … Continue Reading

FATF Mutual Evaluation Report for Singapore 2016

On 27 September 2016, the Financial Action Task Force (FATF) issued its Mutual Evaluation Report (MER) of Singapore Anti-money laundering (AML) / Countering the financing of terrorism (CFT) measures, following a review which was conducted between 17 November 2015 and 3 December 2015. FATF’s last Mutual Evaluation for Singapore was conducted in 2008, with a … Continue Reading

Shenzhen-Hong Kong Stock Connect to launch in November: what you need to know

Shenzhen-Hong Kong Stock Connect (Shenzhen Connect) is expected to be launched in the second half of November 2016, according to the Hong Kong Exchanges and Clearing Limited (HKEX). Shenzhen Connect, upon launch, will mark another milestone in HKEX’s market connectivity with Mainland China. The following documents have been published by HKEX to facilitate the business … Continue Reading

Germany joins the blog

Our Regulation tomorrow blog goes from strength to strength, with the addition of Germany to our existing coverage of Africa, Asia, Australia, Canada, the United Kingdom, Italy, the Netherlands and the United States.  EU-level updates will also be featured on our new German page. New blog posts from Germany include: Ban on CFDs by BaFin … Continue Reading

Hong Kong securities regulator to commence ‘regtech’ project

The Hong Kong securities regulator, the Securities and Futures Commission (SFC), will commence a pilot project next month to assess how ‘fintech’ can be used in its regulatory monitoring processes with a view to implementing new systems. A sample group of 20 banks will be participating in the pilot project along with an external technology … Continue Reading

Hong Kong Monetary Authority’s fintech sandbox

On 6 September 2016, the Hong Kong Monetary Authority (HKMA) released a circular advising the launch of its Fintech Supervisory Sandbox (Sandbox). The Sandbox is intended to facilitate pilot trials of newly developed technologies and applications by authorized institutions (AIs) without the need to achieve full compliance with HKMA’s requirements, thereby allowing AIs to collate … Continue Reading

Regulators announce Shenzhen-Hong Kong Stock Connect

On 16 August 2016, the Securities and Futures Commission of Hong Kong (SFC) and the China Securities Regulatory Commission (CSRC) jointly announced the approval, in principle, of the establishment of Shenzhen-Hong Kong Stock Connect, which will provide mutual stock market access between Hong Kong and Shenzhen via a northbound Shenzhen trading link and a southbound … Continue Reading

Singapore outsourcing: New guidelines for Financial Institutions

The Monetary Authority of Singapore has released its new outsourcing guidelines to financial institutions, which apply to existing outsourcings. Financial institutions have until 27 October 2016, to carry out a self-assessment of all existing outsourcing arrangements against the new guidelines. The guidelines also cover the use of cloud services and a revision to the definition … Continue Reading