Asia

Japanese Financial Services Agency and the Bank of Japan – Summary of Survey Results on the Use of LIBOR and Main Actions Needed

The Japanese Financial Services Agency (JFSA) and the Bank of Japan have published the results of a survey on the use of LIBOR by financial institutions (including banks, securities companies insurance companies and others), their LIBOR exposures and LIBOR transition progress. The survey enables supervisory authorities to quantify the number of contracts that reference LIBOR … Continue Reading

SFC extends certain regulatory compliance deadlines by 6 months in light of COVID-19 pandemic

Due to the current COVID-19 pandemic and ensuing disruption to the securities industry, the Securities and Futures Commission (SFC) has announced, in its recent circular, that it will extend various upcoming regulatory compliance deadlines by a period of six months.  In the same circular, the SFC has also reminded intermediaries of the alternative order recording … Continue Reading

Global Asset Management Quarterly – 14th edition now available online

The latest issue of Global Asset Management Quarterly is now available here. This issue contains the following articles: Europe European update Launch of IFR/IFD transition hub EU/UK regulatory roundup United Kingdom COVID-19: action points for boards to consider FCA Dear CEO letter: Asset management firms – prepare now for the end of LIBOR Extension of … Continue Reading

Monthly global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

HKMA introduces liquidity measures to assist banking industry in response to COVID-19 outbreak

To ensure the continued smooth operation of the interbank market given current economic conditions, the Hong Kong Monetary Authority (HKMA) has rolled out measures to assist the banking industry in managing liquidity. In its recent circular setting out such measures, the HKMA has noted occasional tightness in the Hong Kong dollar money market, caused principally … Continue Reading

Deferral of Basel III implementation and HKMA’s supervisory actions in response to COVID-19

The Hong Kong Monetary Authority (HKMA) has issued a circular announcing that it will defer the implementation of the Basel III final reform package,[1] in line with the revised timeline announced by the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision (BCBS). The … Continue Reading

HKMA issues guidance to registered institutions on regulatory expectations following circulars published by the SFC

The Hong Kong Monetary Authority (the HKMA) has issued a circular to registered institutions (RIs) drawing their attention to the circulars recently published by the Securities and Futures Commission (the SFC), namely: (i) circular on extended deadlines for implementation of regulatory expectations and reminder of order recording requirements under COVID-19 pandemic (the Order Recording Circular) … Continue Reading

SFC issues guidance on licensing related matters in light of the COVID-19 pandemic

The Securities and Futures Commission (SFC) has published a set of frequently asked questions (FAQs) on licensing related matters to facilitate intermediaries and licensing applicants in navigating their compliance challenges during the COVID-19 pandemic. The SFC aims to provide regulatory flexibility whilst ensuring that market integrity and investor protection principles are maintained. The FAQs cover … Continue Reading

SFC issues circular to fund industry participants in view of market volatility caused by COVID-19

In view of the current volatility in local and international markets caused by the COVID-19 outbreak, the Securities and Futures Commission (the SFC) has issued a circular aimed at management companies (Managers) and trustees and custodians of SFC-authorized funds (funds) reiterating best practices with which they are expected to comply, in order to look after … Continue Reading

SFC issues reminder on suitability obligations and timely dissemination of information given market volatility caused by COVID-19

The Securities and Futures Commission (SFC) has issued a circular to intermediaries reminding licensed and registered persons to take extra care to comply with their Code of Conduct[1] obligations to ensure that they are acting in their clients’ best interests given the potential impact of the COVID-19 outbreak on market volatility and liquidity, as well … Continue Reading

Insurance Authority implements Phase 2 of temporary facilitative measures in light of COVID-19

Further to the Phase 1 temporary facilitative measures (TFMs) introduced by the Insurance Authority (IA) on 21 February 2020, the IA has announced the second phase of TFMs in view of the development of the COVID-19 pandemic, in order to reduce the risk of infection from in person meetings during the sales process for insurance … Continue Reading

HKMA issues guidance on risk management practices for algorithmic trading

In response to the increasing prevalence of algorithmic trading (algo-trading) in the banking industry (e.g. for executing trade orders and market making for foreign exchange-related transactions), the Hong Kong Monetary Authority (the HKMA) has issued a circular setting out its supervisory expectations with regard to risk management practices for algo-trading activities which authorized institutions (AIs) … Continue Reading

HKMA issues consultation paper on rules for contractual stays on termination rights in non-Hong Kong law governed financial contracts

The Hong Kong Monetary Authority (the HKMA) has published a consultation paper (the Consultation) on rules relating to contractual stays on termination rights in certain financial contracts (Stay Rules) for authorized institutions (AIs) under the Financial Institutions (Resolution) Ordinance (FIRO). The Stay Rules require in scope AIs to adopt appropriate provisions in certain non-Hong Kong … Continue Reading

FCA information for firms on Coronavirus (Covid-19) response

On 17 March 2020, the FCA published a new webpage containing information for firms regarding the COVID 19 outbreak. Key points include: the FCA is in regular contact with firms to assess their current position, and expects firms to be taking reasonable steps to ensure they are prepared to meet the challenges coronavirus could pose … Continue Reading

Monthly global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought them … Continue Reading

What are the top AML and sanctions compliance challenges in 2020?

We recently completed our global anti-money laundering (AML) and sanctions compliance survey that involved discussions with senior financial services executives. Our global analysis covers 375 participating financial institutions from 77 countries. Our initial analysis indicates several key trends: regulatory pressure on AML and sanctions compliance was significant in 2019 and is expected to continue increasing … Continue Reading

Asia Pacific market participants respond to APLMA’s IBOR Transition survey

Last September, the LMA published Exposure Drafts of Compounded RFR Facilities Agreements by reference to SOFR and SONIA (being the chosen replacement near risk free rates for USD markets and LIBOR in the Sterling respectively), along with a commentary inviting market participants to consider various structuring issues (see earlier blog). The APLMA recently sought feedback from … Continue Reading

Monthly global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

Monthly global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

SFC releases consultation conclusions on margin requirements for non-centrally cleared OTC derivatives

The Securities and Futures Commission (SFC) has issued its consultation conclusions on the proposed margin requirements for non-centrally cleared OTC derivative transactions set out in its consultation paper issued on 19 June 2018 (the Consultation Paper) following submissions from industry associations, market participants and other stakeholders. By way of recap, the Consultation Paper contains proposals … Continue Reading

Watch now: global asset management regulation webinar series

The recordings from our global asset management regulation webinar series are now available to watch on demand. In this series, our financial services team explored the key issues and requirements firms should be considering when looking to launch an overseas fund in Europe, Asia Pacific, the United States and Canada. Watch now: The AIFMD re-examined … Continue Reading

Global anti-money laundering and sanctions compliance survey

An increasingly globalised business environment, together with technological innovation, political uncertainty and ongoing regulatory change, present a number of challenges for financial institutions when it comes to protecting themselves against financial crime. Our global anti-money laundering and sanctions compliance survey will explore how financial institutions across the globe are managing their compliance programs in light of the … Continue Reading

SFC provides licensing guidance for private equity firms and family offices

On 7 January 2020, the SFC issued guidance on the licensing obligations of private equity (PE) firms and family offices which conduct business in Hong Kong. This guidance took the form of two circulars, the first of which relates to PE firms (the First Circular) and the second relates to family offices (the Second Circular). … Continue Reading

New global asset management regulation webinar: The use of Canadian investment funds by non-Canadian managers

In our latest asset management regulatory webinar, Michael Bunn discusses the use of Canadian investment funds by non-Canadian managers, including types of Canadian investment funds; structuring considerations; and the regulation of Canadian funds. Previous webinars in our global asset management regulation series can be found on our Asset Management Regulation hub located on the NRF … Continue Reading
LexBlog