Hong Kong

Enforcement

SFC Fines Convoy Asset Management Over Bond Sales

By Editors | 20/05/2020

The firm failed to comply with product due diligence requirements, client suitability obligations and specific guidance on the sale of fixed income products.

Securities / Derivatives

HSI Operator to Allow Dual Class Shares as Index Constituents

By Editors | 19/05/2020

WVR and secondary-listed companies from the Mainland will be eligible for including in the HSI and HSCEI. H-share companies with unlisted share capital will also be eligible.

Securities / Derivatives

HKMA, SFC to Jointly Review OTC Product Pricing at Intermediaries

By Manesh Samtani | 19/05/2020

The thematic review will assess the spreads intermediaries charge for non-exchange traded investment products such as bonds and structured products.

AML / KYC

SFC Reprimands, Fines Southwest Securities for AML/CFT Failures

By Editors | 18/05/2020

The brokerage failed to implement adequate and effective policies and procedures to mitigate AML/CFT risks associated with third party deposits.

Securities / Derivatives

HKEX Moves to Enhance Liquidity of Exchange Traded Products

By Editors | 18/05/2020

A new spread table will reduce tick sizes and spreads for ETPs, while new market making obligations create a more competitive liquidity providing environment.

SFC to Get Another Three Year Term from CEO Ashley Alder

By Editors | 18/05/2020

Alder was expected to step down in September, but has decided to stay on to ensure regulatory clarity through the current period of “exceptional stress”.

AML / KYC

HK Police Arrest Three in HK$54m Money Laundering Case – Report

By Editors | 17/05/2020

Money stolen through telephone and online scams was laundered through at least three layers of bank accounts in Hong Kong within hours before being funnelled out of the city.

Securities / Derivatives

Hong Kong Lowers Transaction Costs for ETF Market Makers

By Editors | 16/05/2020

An amendment waives stamp duties on primary market stock transfers involving ETF market makers’ activities to create and redeem ETF units.

Enforcement

SFC Declines to Take Action Against HSBC for No-dividend Decision

By Editors | 15/05/2020

Some investors in HSBC alleged the bank failed to safeguard their interests. Others questioned whether the bank’s discussions with the Bank of England were disclosed in a timely manner.