On 28 April 2022, the International Organization of Securities Commissions (IOSCO) published a report setting out some issues and considerations for regulators when reviewing the regulation of market data. The report provides feedback on IOSCO’s earlier consultation report ‘Market Data in the Secondary Equity Market’ and offers the following considerations that regulators may find helpful … Continue Reading
Uncertificated securities market regime On 11 June 2021, the Hong Kong Government gazetted the Securities and Futures and Companies Legislation (Amendment) Ordinance 2021 (SFCA Ordinance), marking a significant milestone in moving Hong Kong towards an uncertificated securities market (USM) where investors will have the option of holding securities in their own names and without paper … Continue Reading
On 26 February 2021, the International Organisation of Securities Commissions (IOSCO) published its work programme for 2021/2022. Ashley Alder, Chair of the IOSCO Board, said: “In 2020, our agenda was dominated by the response to COVID-19 induced market stresses. IOSCO has actively taken steps to address potential financial stability risks including a particular focus on … Continue Reading
The Securities and Futures Commission (SFC) has launched a three-month consultation on proposals to amend its anti-money laundering and counter-financing of terrorism (AML/CFT) guidelines for licensed corporations (LCs) and associated entities (AEs).[1] The proposed amendments aim to align the AML/CTF guidelines with the Guidance for a Risk-based Approach for the Securities Sector (RBA Guidance) issued … Continue Reading
The Monetary Authority of Singapore (MAS) recently issued a consultation paper setting out its proposed regulatory approach for derivatives contracts that reference payment tokens as underlying assets (Payment Token Derivatives). What is this approach meant to address? A well-regulated market for derivatives – particularly one anchored by institutional investors with sophisticated risk management and investment … 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
The Securities and Futures Commission (SFC) published its consultation conclusion on 23 May 2018 in relation to the proposed disclosure requirements for intermediaries providing discretionary account management services (Discretionary Account Managers). This consultation conclusion has been released in connection with the consultation on this topic issued by the SFC in November 20171. In view of … 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
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
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
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
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
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
On 15 July 2016, the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission published their further conclusions (Further Conclusions) on their consultation paper issued in September 2015 (Consultation Paper) on introducing mandatory clearing and expanding mandatory reporting for the second stage of the over-the-counter derivatives regulatory regime. The consultation conclusions, summarising and addressing … Continue Reading
On 17 June 2016, the Securities and Futures Commission (SFC) published an updated set of Frequently Asked Questions on “Offers of Investments” under the Securities and Futures Ordinance (FAQs). The FAQs now include a new Appendix 1 which provides guidance on collective investment schemes involving interests in real property, as well as updated answers to … Continue Reading
On 20 May 2016, the Securities and Futures Commission (SFC) announced it had entered into a memorandum of understanding (MoU) with the United States’ Financial Industry Regulatory Authority (FINRA). The MoU records the authorities’ willingness to provide mutual assistance in the supervision and oversight of regulated entities that operate on a cross-border basis in Hong … Continue Reading
On 18 May 2016, the Securities and Futures Commission published an updated list of “specified shares” listed on the Hong Kong Stock Exchange which are subject to the Securities and Futures (Short Position Reporting) Rules (Cap 571AJ). A report is required to be made to the Securities and Futures Commission where a person has a … Continue Reading
The revised Singapore Code on Take-overs and Mergers (Code) will come into effect on 25th March 2016. Key changes to the Code include, but are not limited to, the following: 1. Competing Offers (a) Alignment of Offer Timetable for Competing Offers The final day on which an offer can become or be declared unconditional as … Continue Reading
The Monetary Authority of Singapore (MAS) has issued a Consultation Paper on proposed amendments to the regulations for the reporting of derivatives contracts (Regulations) on 18 January 2016, as part of the ongoing development of the regulatory regime governing OTC derivatives. MAS also released its proposed implementation schedule for new reporting phases in relation to … Continue Reading
On 24 February 2016, the Securities and Futures Commission (SFC) published conclusions to their consultation proposing to expand the scope of the short position reporting by amending the Securities and Futures (Short Position Reporting) Rules (SPR Rules). The SFC has concluded that, as proposed in the original consultation, the short position reporting will be expanded … Continue Reading
On 5 February 2016, the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA) published their conclusions to the joint consultation paper they issued in September 2015 on introducing mandatory clearing and expanding mandatory reporting for the second stage of the over-the-counter derivatives regulatory regime. Amongst other things, the conclusions defer the commencement … Continue Reading
Key points: The Securities and Futures Commission has introduced a “suitability clause” for client agreements governing the sale of financial products by intermediaries. The clause will provide a mechanism for investors to claim contractual damages against an intermediary where the licensed person either recommends a financial product or solicits its sale and the product is … Continue Reading
On 13 November 2015, the Government published in the Gazette the Securities and Futures (Amendment) Ordinance (Amendment Ordinance), which amends the Securities and Futures Ordinance (Cap. 571) (Ordinance) with immediate effect. The Amendment Ordinance follows on from the consultation conclusions published on 5 June 2015 in response to the consultation paper issued on 19 December … Continue Reading
