Securities and Futures Commission

    Enforcement

    SFC Fines RHB Securities for Internal Control Failures

    By Editors | 02/01/2020

    RHB Securities failed to effectively implement its policy for avoiding conflicts of interest between its research reports and investment banking relationships, among other compliance issues.

    Enforcement

    CLSA, CITIC Securities Censured for Breaching Share Buyback Rules

    By Editors | 02/01/2020

    CLSA and CITIC Securities carried out pre-arranged trades on the SEHK to allow Beijing Enterprises Holdings to buyback its shares without regulatory or shareholder approval.

    Enforcement

    SFC Fines Fidelity Unit for Unlicensed Futures Dealing

    By Editors | 31/12/2019

    FIL Investment Management executed over 6,700 futures trades for overseas affiliates without a Type 2 licence, and delayed reporting the breach to the SFC.

    Enforcement

    SFC Fines Adamas Asset Management for Disclosure Failings

    By Editors | 24/12/2019

    The asset manager was fined HK$2.5mn for filing 339 incorrect or late notifiable interest disclosures to the SEHK and eight listed companies.

    AML / KYC

    SFC Proposes Enhancements to OFC Regime

    By Editors | 23/12/2019

    The changes include a mechanism for overseas corporate funds looking to re-domicile in Hong Kong. OFCs will also have to keep a register of beneficial shareholders.

    AML / KYC

    SFC, CSRC Set Date for Southbound Investor Identification Regime

    By Editors | 20/12/2019

    With technical preparations now complete at exchanges and clearinghouses, southbound trading investor identification regime is scheduled for implementation on 13 January.

    Enforcement

    China, US in Talks on Allowing Joint Inspections of Auditors

    By Editors | 19/12/2019

    The CSRC has reportedly been in talks with the US audit regulator on allowing joint inspections of firms that audit Chinese companies listed in the US.

    Securities / Derivatives

    SFC Concludes Consultation on OTC Derivatives Margin Requirements

    By Manesh Samtani | 19/12/2019

    IM requirements will be phased in for firms with AANA exceeding HK$375bn starting from 1 September 2020, the same date VM requirements take effect.

    Enforcement

    SFC Bans Two Individuals for Window-Dressing Scheme

    By Editors | 17/12/2019

    For 3 years, the month-end liquid capital of W. Falcon Asset Management was falsely inflated with amounts on cheques that were later dishonoured.

    Securities / Derivatives

    SFC to Allow Hong Kong ETFs to Invest in Overseas Master ETFs

    By Editors | 17/12/2019

    The SFC will authorise index tracking feeder ETFs that want to invest in an overseas-listed, non-SFC authorised master ETF on a case-by-case basis.

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