Asia

Hong Kong: Securities and Futures Commission and the Securities Commission Malaysia sign Fintech cooperation agreement

On 14 September 2017, the Securities and Futures Commission (SFC) and the Securities Commission Malaysia (SCM) signed a co-operation agreement to collaborate on the promotion of financial innovation in Hong Kong and Malaysia The co-operation agreement sets out a framework for collaboration between the SFC and the SCM and covers matters such as referrals, information … Continue Reading

Hong Kong: Securities and Futures Commission has voiced concerns over asset management practices

The Securities and Futures Commission (SFC) recently issued two circulars to licensed corporations engaged in asset management business.  The circulars were issued following routine inspection by the SFC of corporations licensed for such activity. Irregularities identified relating to private funds and discretionary accounts The first circular was issued by the SFC on 31 July 2017 … Continue Reading

Hong Kong: Securities and Futures Commission and the Dubai Financial Services Authority sign fintech co-operation agreement

On 28 August 2017, the Securities and Futures Commission (SFC) and the Dubai Financial Services Authority (DFSA) signed a co-operation agreement to collaborate on the promotion of financial innovation in Hong Kong and Dubai. The co-operation agreement sets out a framework for collaboration between the SFC and the DFSA and covers matters such as referrals, … Continue Reading

Hong Kong: Securities and Futures Commission and the Hong Kong Police join forces to combat financial crime

On 25 August 2017, the Securities and Futures Commission (SFC) and the Hong Kong Police (HKP) signed a memorandum of understanding (MoU) to formalise and strengthen the parties’ co-operation in combating financial crime. The MoU, which became effective on 25 August 2017, covers a variety of matters, including referral of cases, joint investigations, exchange and … Continue Reading

Hong Kong: Key persons in control functions – 30 September 2017 deadline for approval under transitional arrangements

Summary Hong Kong has recently introduced fit and proper requirements for “key persons in control functions”. As a result, an insurer must now obtain the Insurance Authority’s prior approval before appointing a key person in a control function. Individuals who were key persons in control functions before 26 June 2017 can benefit from the Insurance … Continue Reading

Hong Kong: Consultation conclusion and further consultation on changes to the Securities and Futures (Financial Resources) Rules

Following a consultation paper issued by the Securities and Futures Commission (SFC) in July 2015, the SFC, on 24 July 2017, published consultation conclusions and further consultation on the proposed capital and other prudential requirements for licensed corporations engaged in over-the-counter derivatives (OTCD) activities and other proposed changes to the Securities and Futures (Financial Resources) … Continue Reading

Singapore – Comprehensive Cyber Bill Published For Consultation

Overview: On 10 July 2017, the Singapore Government unveiled its draft Cybersecurity Bill (the Bill) and announced a public consultation to seek views and comments from the industry and members of public. The public consultation runs from 10 July to 3 August 2017. This Bill comes on the back of various moves by the Singapore … Continue Reading

Hong Kong: Proposed amendments to the Companies Ordinance to enhance the transparency of beneficial ownership of Hong Kong companies

The Companies (Amendment) Bill 2017 (the Bill) was recently published by the Hong Kong government and is under consideration by Hong Kong’s Legislative Council. The Bill seeks to amend the Companies Ordinance (Cap 622) (the Companies Ordinance) to require certain companies incorporated in Hong Kong to obtain and maintain information about beneficial owners. Subject to … Continue Reading

Hong Kong: Issue of HKMA circular providing certain categories of authorized institutions with guidance on their recovery plan obligations

On 6 July 2017, the Hong Kong Monetary Authority (HKMA) issued a circular in respect of its Supervisory Policy Manual module RE-1 “Recovery Planning” (SPM RE-1).  The circular provides certain categories of authorized banks in Hong Kong (AIs), in particular, overseas incorporated banks with branch operations in Hong Kong and Hong Kong incorporated small scale … Continue Reading

Hong Kong: Consultation on new regulations on open-ended fund companies

On 28 June 2017, the Securities and Futures Commission (SFC) launched a consultation on the proposed rules and code for Hong Kong-incorporated open-ended fund companies (OFCs). At present, Hong Kong investment funds can only be established in the form of a unit trust, and not in corporate form. This is due to the restrictions under … Continue Reading

Hong Kong: Proposed AML reforms – Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) (Amendment) Bill 2017

On 28 June 2017, Hong Kong’s Legislative Council considered the new Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) (Amendment) Bill 2017 (the Bill). Subject to the Bill being passed by the Legislative Council, the Government proposes to implement the amendments on 1 March 2018. The Bill proposes to introduce statutory customer due diligence (CDD) and … Continue Reading

Hong Kong: SFC clarifies competency requirements for existing licenced persons intending to carry on asset management business

On 23 June 2017, the Securities and Futures Commission (the SFC) issued a circular clarifying certain competency requirements for market participants seeking to be licensed for Type 9 (asset management) regulated activity (Type 9 RA). Pursuant to the circular, the SFC has provided public guidance on the circumstances in which an applicant’s existing experience could … Continue Reading

Disclosure of interests in Hong Kong: Be ready to file with a brand new system

Hong Kong’s Securities and Futures Commission (SFC) will introduce a new system for mandatory electronic filing of disclosure of interests notifications (DI notices), which will come into effect on 3 July 2017. From that day onwards, market participants are required to submit DI notices electronically through the new Disclosure of Interests Online System (DION System). … Continue Reading

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 in May 2017, 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 … 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
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