Securities and Futures Commission

    Enforcement

    SFC Publicly Criticises CICC Units for Breaching Takeovers Code

    By Editors | 19/06/2020

    CICC and CICC Financial Trading – as associates of the CICC securities unit advising on certain offers – dealt in the relevant securities without making timely disclosures.

    Securities / Derivatives

    SFC to Narrow Scope of OTC Derivatives Licensing Regime

    By Manesh Samtani | 10/06/2020

    The OTC derivatives licensing regime will not capture corporate treasury activities of non-financial groups, portfolio compression services, and certain portfolio management activities.

    Securities / Derivatives

    SFC Proposes to Grant Greater Investment Flexibility to REITs

    By Editors | 09/06/2020

    REITs will be given more flexibility to invest in minority-owned properties and property development projects, and borrowing limits will be increased.

    Capital / Liquidity

    SFC Fines Potomac Capital for Breaching Financial Resources Rules

    By Editors | 08/06/2020

    Potomac misinterpreted the financial resources rules and incorrectly including aged fees receivables as liquid assets, leading to an overstatement of liquid capital.

    Securities / Derivatives

    HKEX Continues to Bolster Derivatives Product Ecosystem

    By Manesh Samtani | 02/06/2020

    HKEX is launching silver futures and four new rupee futures contract months, on top of new derivative products linked to MSCI indices and a new set of exchange-traded products.

    Enforcement

    SFC Bans Guosen Fund Manager for Violating Staff Trading Policies

    By Editors | 29/05/2020

    The fund manager concealed his beneficial interests, direct control and trading activities in securities accounts held at an external brokerage.

    Securities / Derivatives

    SFC to Allow Leveraged, Inverse ETFs Tracking Mainland Indices

    By Editors | 24/05/2020

    The SFC is prepared to initially only accept ‘swap-based’ L&I products tracking Mainland equity indices, with a leverage factor up to 2x, or negative 1x for inverse products.

    Securities / Derivatives

    Hong Kong: Securities Industry Subsidies to be Available from 25 May

    By Editors | 20/05/2020

    A cash subsidy of HK$50,000 will be available for securities firms ranked 15th onwards by market turnover, and HKD 2,000 for each individual licensed by the SFC.

    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

    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.

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