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
The Securities and Futures Commission published a circular on 22 October 2015 to update the market on the implementation of the over-the-counter (OTC) derivatives regulatory regime (OTC Regime) in Hong Kong. The OTC Regime constitutes a new framework for introducing, reporting, clearing and trading requirements through subsidiary legislation and also: brings certain activities relating … Continue Reading
On 15 September 2015, the Hong Kong Monetary Authority (HKMA) issued a circular to authorised institutions to highlight the management of cyber security risk. Cyber security risk has been in the spotlight for a number of financial services regulators across the globe as an area of heightened risk, given the number of high profile attacks … Continue Reading
The Inland Revenue (Amendment) (No. 2) Ordinance 2015 (Amendment Ordinance) was gazetted and came into force on 17 July 2015. It amends the Inland Revenue Ordinance. Before the enactment of the Amendment Ordinance, the Inland Revenue Ordinance offered a profits tax exemption for certain transactions conducted by offshore funds in respect of eligible overseas portfolio … Continue Reading
On 17 July 2015, the Securities and Futures Commission (SFC) released a consultation paper on proposed changes to the Securities and Futures (Financial Resources) Rules (FRR) relating to capital and other prudential requirements for licensed corporations engaged in over-the-counter (OTC) derivatives activity (Proposals). The purpose of the Proposals is to enhance the SFC’s prudential regulatory regime … Continue Reading
China has published a draft Cyber Security Law (Draft Law) for public discussion and feedback until 5 August 2015. This law, if enacted in its current form, will have far-reaching consequences for financial institutions with operations in China. In recent years, China has dedicated efforts to enhance the security and supervision of the Internet and telecommunication networks, in particular, … Continue Reading
On 5 June 2015, the Securities and Futures Commission (SFC) published its consultation conclusions on proposed amendments to the Securities and Futures Ordinance (SFO) for providing assistance to overseas regulators in certain situations. The proposed amendments will give the SFC discretion to provide supervisory assistance to an overseas regulator, but will not impose an obligation … Continue Reading
The Hong Kong Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have signed a Memorandum of Regulatory Cooperation on 22 May 2015 regarding Mainland-Hong Kong Mutual Recognition of Funds (MRF). The aim of MRF is to allow eligible Mainland and Hong Kong funds to be distributed in each other’s market through … Continue Reading
Consultation Conclusions on reporting and record keeping rules for OTC derivatives On 15 May the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) published Consultation Conclusions on their further consultation on rules on mandatory reporting and related record keeping obligations under the new over-the-counter (OTC) derivatives regime (Rules). The consultation considered … Continue Reading
Securities and Futures (Amendment) Ordinance 2014 (Commencement) Notice 2015 The Securities and Futures (Amendment) Ordinance 2014 relating to reporting of OTC derivatives transactions and related record-keeping will come into operation on 10 July 2015. As a result, significant changes will be made to the Securities and Futures Ordinance, including the addition of a new Part … Continue Reading
On 8 May 2015, the Hong Kong Financial Services and the Treasury Bureau (FSTB) and Hong Kong Monetary Authority (HKMA) jointly published their Consultation Conclusions on Enhancements to the Deposit Protection Scheme (DPS) (the Consultation Conclusions).The Consultation Conclusions set out the FSTB’s and HKMA’s responses to the three-month public consultation (the Consultation) with the intention … Continue Reading
The Asia Pacific Regional Committee (APRC) of the International Organization of Securities Commissions (IOSCO) published (on 23 March 2015) a framework strategy (Roadmap) to enhance collaboration and cooperation amongst regulators in the Asia Pacific region. The Roadmap provides APRC’s 29 members with an outline of areas for contributions by regulators in support of the region’s … Continue Reading
On 3 September 2014, China Banking Regulatory Commission (CBRC) issued the Guidance Opinions on the Strengthening of Banking Industry’s Internet Security and Information Construction by the Use of Secure and Controllable Technology (the Guiding Opinions). The Guiding Opinions provides for certain generic requirements in terms of improving IT security in the banking sector. On 26 … Continue Reading
The short-selling service of Northbound shares (A Shares) (flagged in our previous blog post on 31 January 2015) began on 2 March 2015. Hong Kong and overseas investors can now participate in trading permitted Shanghai Stock Exchange securities (Eligible SSE Securities) under the Shanghai-Hong Kong Stock Connect (Stock Connect). The purpose of rolling out this … Continue Reading
Our Hong Kong office has released a Learning & Development calendar for March – September 2015. Clients are invited to join a range of legal and personal development and business skills sessions. We are holding a session in June on Corporate governance in financial institutions.… Continue Reading
In January 2015, State Administration for Industry and Commerce (SAIC) published the Measures for the Punishment of Conduct Infringing the Rights and Interests of Consumers (the Measures), effective from 15 March 2015. The Measures require that business operators who collect or use consumers’ personal information shall “clearly state the purpose, manner, and scope for the … Continue Reading
The Hong Kong Exchanges and Clearing Limited (HKEx) issued a press release on 6 January 2015 providing an update on the Shanghai-Hong Kong Stock Connect (Stock Connect) since its launch in November 2014 (please see our previous blog post). Of particular interest are the following points noted by HKEx: Engagement with industry bodies and overseas … Continue Reading
Draft Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules (Rules) were published on 27 November 2014 together with associated consultation conclusions and a further related public consultation. This follows the HKMA and SFCs public consultation on the topic in July 2014. The Rules will be placed before the Legislative Council … Continue Reading
On 25 November, the International Organization of Securities Commissions (IOSCO) published a consultation report, IOSCO Task Force on Cross-Border Regulation (the Consultation), on cross-border securities regulation and challenges. Mr Ashley Alder, Chief Executive Officer of the Securities and Futures Commission in Hong Kong and Chair of the Task Force on Cross-Border Regulation (the Task Force), noted … Continue Reading
The main data protection rules under the Singapore Personal Data Protection Act 2012 (PDPA) and the Personal Data Protection Regulations took effect on 2 July 2014, with several Advisory Guidelines issued later in September 2014. The topics covered under the Advisory Guidelines range from (1) Advisory Guidelines covering selected topics such as Analytics and Research, … Continue Reading
Both the Hong Kong Monetary Authority (MA) and the Securities and Futures Commission (SFC) have expressed concerns about data leakage and cybersecurity risks, and expect the participants they regulate to conduct a critical review of existing customer data controls and, where necessary, implement enhancement programmes. The MA expect all authorised institutions to do so by … Continue Reading
On July 16, the Investment Industry Regulatory Organization of Canada (IIROC) requested comments in Notice 14-0181 (the “IIROC Notice”) concerning how it determines the proficiency qualifications for its members’ personnel. At the present time, a private organization, the Canadian Securities Institute (CSI), owned by Moody’s Corporation, is the exclusive course provider for IIROC regulatory courses. … Continue Reading
