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
Hong Kong: SFC announces timetable for implementation of Code of Conduct changes
On 21 March 2016, the Securities and Futures Commission (SFC) announced that it would synchronise the implementation of certain changes to the SFC’s Code of Conduct for Persons Licensed by or Registered with the SFC (Code). These changes relate to:
- new paragraph 15 of the Code, which came into effect on 25 March 2016, and
Hong Kong: Proposed introduction of open-ended fund company structure welcomed
Currently, open-ended investment funds may be established in Hong Kong as unit trusts, but not in corporate form due to restrictions on capital reduction under the Companies Ordinance (CO).
The Securities and Futures (Amendment) Bill 2016 (Bill), which was gazetted on 15 January 2016, seeks to amend the Securities and Futures Ordinance (SFO) to introduce
Hong Kong financial services: SFC introduces “suitability clause” to protect investors
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
Hong Kong: Much-anticipated Financial Institutions (Resolution) Bill Gazetted
On 20 November 2015 the Hong Kong Government published the Financial Institutions (Resolution) Bill (the Bill). The Bill seeks to bring Hong Kong into line with the latest international standards – the Financial Stability Board (FSB) ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ (Key Attributes) and to establish an effective cross-sector
Implementation of Enhanced Competency Framework for Private Wealth Management Practitioners
On 23 October 2015, the Hong Kong Monetary Authority (HKMA) published a circular on the progress of Registered Institutions’ implementation of the enhanced competency framework (ECF) for private wealth management practitioners, following the HKMA’s survey on private banks’ implementation progress and plans for the ECF. The ECF was launched in June 2014 and the initial
Revised Capital Rules for Banks
The Financial Services and the Treasury Bureau have recently stated that as an international banking and financial centre, Hong Kong supports the consistent implementation of international standards across all Basel Committee member jurisdictions. The statement was made in relation to the gazetting of the Banking (Capital) (Amendment) Rules 2015 on 23 October 2015 which introduced
Hong Kong Monetary Authority: Revised guideline on the application of the Banking (Disclosure) Rules following implementation of Basel III framework standards
On 6 August 2015, the Hong Kong Monetary Authority (HKMA) issued an updated version of Supervisory Policy Manual module CA-D-1: Guideline on the Application of the Banking (Disclosure) Rules (Guideline). The revised Guideline reflects the amendments to the Banking (Disclosure) Rules (Cap. 155M) made in light of the implementation of Basel III framework standards[1]
Hong Kong: Extension of profits tax exemption to PE funds welcomed
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
Breaking news – Hong Kong: Passing of Insurance Companies (Amendment) Bill 2014
The Hong Kong Legislative Council passed the Insurance Companies (Amendment) Bill 2014 today (10 July 2015).
The Bill will need to be gazetted before it becomes law. The Secretary for Financial Services and the Treasury, Professor KC Chan, indicated that the Ordinance will be brought into force in three stages. This is to facilitate the