Securities and Futures Commission

Trading & Investment

SFC Highlights Areas of Concern on Best Execution

By Bradley Maclean | 08/02/2018

Hong Kong SFC’s recent report on licensed corporations attitudes towards best execution practices shows there is much to be desired.

Anti-Money Laundering

Hong Kong Includes Non-Financial Entities in AML/CTF Amendments

By Garima Chitkara | 08/02/2018

Hong Kong AML/CTF rules will apply to financial transactions by non-financial entities; SFC requires licensees to screen client lists.

Conduct, Culture & Accountability

China’s Vicious Cycle – Household Debt, Mis-selling and Systemic Risk

By Bradley Maclean | 01/02/2018

Increased regulation in an effort to rein in personal borrowing could foster an attitude of ‘bare minimum compliance’ among banks, leading to future systemic risk.

Conduct, Culture & Accountability

SFC Identifies Product Selling Compliance Failures 

By Samuel Riding | 28/01/2018

Licensed corporations should ensure client suitability when recommending fixed-income and structured products, particularly for complex and risky products.

Supervision & Enforcement

Hong Kong SFC Looks to Optimise Enforcement Action

By Editors | 18/01/2018

New guidance removes threat of criminal prosecution in cases of “non-serious” regulatory breaches and cooperation ‘above and beyond’ regulatory obligations.

Anti-Money Laundering

SFC Urges Licensees to File “Better Quality” Suspicious Transaction Reports

By Editors | 17/01/2018

Circular sent to firms following a feedback report issued by the Joint Financial Intelligence Unit.

Clearing & Post-Trade

HK SFC to Remove Corporate Treasury of non-Financial Firms from OTC Regulation

By Samuel Riding | 21/12/2017

Extensive consultation also proposes to expand risk mitigation requirements to ‘all licensed corporations’, rejects idea of regulatory threshold.

Conduct, Culture & Accountability

HK SFC Releases 1st MiC Regime Guidance Bulletin

By Editors | 20/12/2017

Report warns on conflicts of interest in sales practices and asset management; notes asset management sector now has more than half of all intermediaries.

Capital Adequacy

HK SFC Proposes Raising Capital Required by Fund Managers

By Editors | 19/12/2017

Consultation covers raising of minimum capital requirement to HKD10 million, introduction of derivatives use by public funds with enhanced safeguards.