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
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 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
On 28 August 2017, the Securities and Futures Commission (SFC) and the Dubai Financial Services Authority (DFSA) signed a co-operation agreement to collaborate on the promotion of financial innovation in Hong Kong and Dubai. The co-operation agreement sets out a framework for collaboration between the SFC and the DFSA and covers matters such as referrals, … Continue Reading
On 25 August 2017, the Securities and Futures Commission (SFC) and the Hong Kong Police (HKP) signed a memorandum of understanding (MoU) to formalise and strengthen the parties’ co-operation in combating financial crime. The MoU, which became effective on 25 August 2017, covers a variety of matters, including referral of cases, joint investigations, exchange and … Continue Reading
Following a consultation paper issued by the Securities and Futures Commission (SFC) in July 2015, the SFC, on 24 July 2017, published consultation conclusions and further consultation on the proposed capital and other prudential requirements for licensed corporations engaged in over-the-counter derivatives (OTCD) activities and other proposed changes to the Securities and Futures (Financial Resources) … Continue Reading
On 6 July 2017, the Hong Kong Monetary Authority (HKMA) issued a circular in respect of its Supervisory Policy Manual module RE-1 “Recovery Planning” (SPM RE-1). The circular provides certain categories of authorized banks in Hong Kong (AIs), in particular, overseas incorporated banks with branch operations in Hong Kong and Hong Kong incorporated small scale … Continue Reading
On 28 June 2017, the Securities and Futures Commission (SFC) launched a consultation on the proposed rules and code for Hong Kong-incorporated open-ended fund companies (OFCs). At present, Hong Kong investment funds can only be established in the form of a unit trust, and not in corporate form. This is due to the restrictions under … Continue Reading
On 28 June 2017, Hong Kong’s Legislative Council considered the new Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) (Amendment) Bill 2017 (the Bill). Subject to the Bill being passed by the Legislative Council, the Government proposes to implement the amendments on 1 March 2018. The Bill proposes to introduce statutory customer due diligence (CDD) and … Continue Reading
On 23 June 2017, the Securities and Futures Commission (the SFC) issued a circular clarifying certain competency requirements for market participants seeking to be licensed for Type 9 (asset management) regulated activity (Type 9 RA). Pursuant to the circular, the SFC has provided public guidance on the circumstances in which an applicant’s existing experience could … Continue Reading
Hong Kong’s Securities and Futures Commission (SFC) will introduce a new system for mandatory electronic filing of disclosure of interests notifications (DI notices), which will come into effect on 3 July 2017. From that day onwards, market participants are required to submit DI notices electronically through the new Disclosure of Interests Online System (DION System). … Continue Reading
The Securities and Futures Commission (the SFC) recently launched a public consultation process in respect of proposed amendments to the Securities and Futures (Professional Investor) Rules (Chapter 571D of the Laws of Hong Kong) (the Professional Investor Rules). The public consultation process was launched on 1 March 2017. The principal changes proposed in respect 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
The Financial Institutions (Resolution) Ordinance (the Ordinance) was passed by the Legislative Council on 22 June 2016 and gazetted on 30 June 2016. The Ordinance aims to bring Hong Kong in line with the latest international standards, being the ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ set by the Financial Stability Board, and … Continue Reading
