Securities and Futures Commission

    Enforcement

    Hong Kong Asset Manager Fined for Wash Trading

    By Editors | 28/12/2018

    The asset management firm was both the buyer and seller in a transaction between two of its brokers, which the SFC deemed was a wash trade.

    Securities / Derivatives

    Licensed Corporations Should Carefully Review Internal Controls – SFC

    By Editors | 20/12/2018

    The SFC has reviewed brokers’ internal control systems and found they are not adequately protecting client assets, supervising their staff or incentivising good compliance culture.

    AML / KYC

    Stock Connect to Introduce Investor ID Regime for Southbound Trading

    By Editors | 17/12/2018

    Launched on 26 September for northbound trading, the investor identification regime will be introduced for southbound trading by the end of Q1 2019.

    Market Infrastructure

    Plans to Launch HK-China ETF Connect Put on Hold – Report

    By Editors | 14/12/2018

    Trading and settlement issues will require “a very long period of discussion” to resolve, according to SFC chairman Tim Lui, adding that the focus will shift to enabling ETF cross listings.

    Securities / Derivatives

    Hong Kong to Extend Profits Tax Exemption to Local PE, Hedge Funds

    By Editors | 14/12/2018

    Under the existing framework, non-retail funds domiciled in Hong Kong are not exempt from profits tax, unlike their offshore-domiciled counterparts.

    Market Infrastructure

    SFC Concludes Consultation on Enhancements to OTC Derivatives Regime

    By Editors | 13/12/2018

    OTC derivatives participants will be subject to new risk mitigation requirements, as well as conduct requirements for dealings with group affiliates and related parties.

    Capital / Liquidity

    IMF Commends Hong Kong for Strong Buffers, Robust Policy Frameworks

    By Manesh Samtani | 12/12/2018

    Years of prudent macroeconomic policies and robust financial regulation and supervision will help Hong Kong weather possible domestic and external shocks, the IMF says.

    Enforcement

    Korean Regulators Become Latest Signatories to IOSCO EMMoU

    By Editors | 07/12/2018

    South Korea’s FSC and FSS have jointly become the 10th member of IOSCO’s EMMoU, which enables cross-border sharing of audit papers and telecommunications and internet records.

    Enforcement

    Soros-Linked Fund Manager Fined in Hong Kong for Naked Short Selling

    By Editors | 07/12/2018

    SFM HK Management Ltd, owned by New York’s Soros Fund Management, was fined HK$1.5mn for short selling Great Wall Motors bonus shares before they were available for trading.

    Capital / Liquidity

    SFC Revised Code for Funds to Take Effect from January 2019

    By Manesh Samtani | 07/12/2018

    Amended ‘Code on Unit Trusts and Mutual Funds’ to take effect in January with 12-month transition period. Proposals on classification of derivatives funds have been revised.

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