Hong Kong

    Enforcement

    EY, Two Partners Fined for Audit Failures on 20-Year Old Stock Listings

    By Garima Chitkara | 27/08/2018

    EY and two of its partners were collectively fined HK$700,000 plus HK$1.5mn in legal costs for failing to properly audit the financial statements of three firms that went bust soon after being listed.

    Enforcement

    Hong Kong Forex Broker Fined for Mishandling Client Money

    By Editors | 23/08/2018

    HPI Forex Limited transferred client money from segregated client account to two overseas brokers, breaching the Code of Conduct and the SFC’s client money rules.

    Fintech / Regtech

    Virtual Banks in Hong Kong: Bringing Risks and Opportunities To Asia

    By Kristi Swartz | 21/08/2018

    A new era of smart banking in Hong Kong is anticipated to begin at the end of this year with the establishment of virtual banks. Competent players will embrace enormous opportunities to challenge the city’s traditional banking model.

    Securities / Derivatives

    Hong Kong SFC Proposes New Rules For Securities Margin Financing

    By Garima Chitkara | 20/08/2018

    The regulator has launched a two-month consultation around stronger risk management standards to govern securities margin financing.

    AML / KYC

    HKMA Reprimands, Fines Shanghai Commercial Bank for AML/CFT Failures

    By Editors | 20/08/2018

    The bank was fined HK$5mn for ineffective procedures for continuous monitoring of business relationships and due diligence on pre-existing customers.

    Securities / Derivatives

    Stock Connect ID System for Northbound Trades Slated for September Launch

    By Editors | 13/08/2018

    Northbound investor ID system is scheduled to be implemented on 10 September, pending market readiness and regulatory approval, and will not affect the business of existing market participants.

    Capital / Liquidity

    Indian Government Urges RBI to Ease Bank Capital Rules

    By Editors | 10/08/2018

    Under Basel III rules, banks would need to hold CET1 capital of 4.5% of RWAs, compared to the 4.5% now required of Indian banks.

    Fintech / Regtech

    Financial Regulators Consult on ‘Global Sandbox’ Approach

    By Manesh Samtani | 09/08/2018

    HKMA, MAS, ASIC among 12 regulators seeking views from interested parties on new Global Financial Innovation Network initiative, including its role, tools and where it should prioritise activity.

    AML / KYC

    Account Opening Woes Causing Loss of Business in Hong Kong – HKICS

    By Garima Chitkara | 07/08/2018

    HK Institute of Chartered Secretaries survey found 68% of member believe Hong Kong has been losing out on businesses because of non-transparent and onerous bank account opening processes.

    Securities / Derivatives

    SFC Warns Against Disguised Margin Financing

    By Editors | 06/08/2018

    Suspected margin financing arrangements involve unlicensed affiliates of licensed corporations or third parties who appear to be engaging in securities margin financing without an SFC licence in order to circumvent regulatory requirements.

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