With effect from 23 September 2019, the Hong Kong Insurance Authority (the IA), an independent statutory body, will take over regulation of insurance intermediaries from the three existing self-regulatory organisations (the Hong Kong Confederation of Insurance Brokers, the Professional Insurance Brokers Association, and Insurance Agents Registration Board) and administer a new statutory licensing regime. The … Continue Reading
On 4 April 2019, the Securities and Futures Commission (SFC) released the conclusions of its consultation on proposed guidelines for securities margin financing activities (the Guidelines). The existing conduct requirements for securities margin financing activities are mainly prescribed in the Code of Conduct for Persons Licensed by or Registered with the SFC and the Management, … Continue Reading
On 28 March 2019, the Securities and Futures Commission (SFC) published a statement reminding parties who engage in security token offerings (STOs) to be aware of the applicable legal and regulatory requirements. This statement is helpful given that STOs are a relatively new form of token issuance. STOs are specific offerings which are structured to … Continue Reading
On March 15, 2019, the long-awaited Foreign Investment Law of China (Foreign Investment Law) was passed at the National People’s Congress of China, turning a new chapter of regulatory and legal regime for foreign direct investment in the second largest economy in the world. Our briefing note on the new regime can be found here. … Continue Reading
The Basel Committee on Banking Supervision (BCBS) have shone a light on the risks associated with crypto-assets in a statement issued on 13 March 2019, calling on banks who acquire exposures to crypto-assets to take appropriate and specific measures to mitigate such risks. The BCBS is the primary global standard setter for the prudential regulation … Continue Reading
The Hong Kong Monetary Authority (HKMA) has recently (18 July 2018) released its final Open API Framework. The formulation of the Open API Framework is one of the seven initiatives announced by the HKMA in September 2017 to facilitate the move into a new era of Smart Banking. The framework sets out a phased approach to … Continue Reading
‘Best Practices for Digital Asset Exchanges’ is a first-of its kind report released by ASIFMA, the region’s leading trade association for the financial industry. The report aims to guide digital exchanges towards international best practices and highlights key areas for consideration, including the listing processes, market abuse issues, regulatory considerations, cybersecurity and engagement with external … Continue Reading
Following a public consultation, the Hong Kong Monetary Authority (HKMA) published a revised Guideline on Authorization of Virtual Banks (the Guideline) on 30 May 2018. The Guideline supersedes the previous guideline issued in 2000 (and updated in 2012). Our blog entry dated 4 March 2018 which provides details of the public consultation can be found … Continue Reading
An investigation by Hong Kong’s Securities and Futures Commission (SFC) has led to the halt and unwinding of an initial coin offering (ICO) by Black Cell Technology Limited (Black Cell) to the Hong Kong public on the basis that Black Cell potentially engaged in unauthorized promotional and unlicensed regulated activities. Black Cell promoted the token … Continue Reading
In September 2017, the Hong Kong Monetary Authority (HKMA) launched seven initiatives aimed at creating a “new era of smart banking”. The HKMA has recently published consultation papers relating to two of these. Firstly, on 11 January 2018, the HKMA launched an industry consultation setting out its planned approach to Open Application Programming Interfaces (Open … Continue Reading
Further to our previous blog post, the provisions of the Companies (Amendment) Ordinance 2018 will take effect on 1 March 2018. This amendment to the Companies Ordinance (Cap 622) (the Companies Ordinance) introduces new requirements on a company to identify persons who have “significant control” over the company and to maintain certain information about such … Continue Reading
On 5 January 2018, the Hong Kong Monetary Authority (HKMA) issued a circular setting out guidance relating to the implementation of changes to the paragraphs of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code) relating to: (i) ‘Disclosure of monetary and non-monetary benefits’ (paragraph 8.3), and (ii) ‘Independence’ (paragraph … Continue Reading
On 12 December 2017, the Securities and Futures Commission (SFC) issued an updated guidance note regarding the benefits of cooperating on its investigations and enforcement proceedings (Guidance Note). The SFC also published a new set of Frequently Asked Questions to supplement the Guidance Note (FAQs). As noted in the FAQs, one of the key changes … Continue Reading
On 24 November 2017, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint circular on the results of their joint review on the potential conflicts of interest which may arise from the sale of in-house products by licensed corporations and registered institutions (collectively, intermediaries) within a single financial … Continue Reading
The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) are increasingly focused on cyber security in light of the threat posed to the integrity, efficiency and soundness of financial markets by cyber threats and hacks. On 27 October 2017, the SFC issued new Guidelines for Reducing and Mitigating Hacking Risks Associated … Continue Reading
On 16 October 2017, the Hong Kong Monetary Authority (HMKA) issued a circular on management responsibilities for Hong Kong licensed banks which conduct regulated activities (registered institutions). The circular is intended to supplement the existing management prudential regime under the Banking Ordinance framework. Pursuant to the circular, registered institutions are required to notify the HKMA … Continue Reading
The venture capital landscape in Asia continues to be robust. By Q2 2017, global venture capital deal value reached US$ 40.1 billion, a healthy 55.3% increase.1 Asia accounted for US$12.7 billion, taking the second place from United States led venture capital investments which aggregated US$21.8 billion.2 Europe accounted for US$4.1 billion of global venture capital … Continue Reading
Following the end of a 6-month transition period, the Manager-In-Charge (MIC) regime introduced by the Securities and Futures Commission (SFC) is now fully implemented, starting from 17 October 2017. The regime seeks to heighten the accountability of senior management at licensed corporations and to promote greater awareness of their obligations. Under the MIC regime, licensed … Continue Reading
The Securities and Futures Commission (SFC) this week outlined an optimistic vision for the future of Hong Kong as a continued pre-eminent global financial centre, especially in relation to its position as the main conduit to the Chinese Mainland, based on the increased collaboration and more effective enforcement measures set out below. Ashley Alder, chief … Continue Reading
On 29 September 2017, the Hong Kong Monetary Authority (HKMA) announced a range of initiatives aimed at preparing Hong Kong for a new era of smarter banking driven by technological advances. The HKMA press releases were announced on the same day as, and supplement, announcements by the Securities and Futures Commission (SFC) and the Insurance … Continue Reading
On 29 September 2017, the Securities and Futures Commission (SFC) issued a circular announcing the launch of the SFC Regulatory Sandbox (the Sandbox) which aims to regulate qualified firms conducting regulated activities under the Securities and Futures Ordinance (SFO) in the financial technologies (Fintech) sphere. The circular was issued in tandem with announcements by the … Continue Reading
On 28 September 2017, the Hong Kong Monetary Authority (HKMA) issued a circular on the Global Code of Conduct Standards and Practices for the Wholesale Foreign Exchange Market (the FX Global Code). The circular notes that the Hong Kong Treasury Markets Association (TMA) has incorporated the FX Global Code into its Code of Conduct. In … Continue Reading
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
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
