Securities and Futures Commission

AML / KYC

SFC Unveils Regulatory Framework for Crypto Exchanges

By Manesh Samtani | 07/11/2019

Under the new framework, announced at Hong Kong Fintech Week, platform operators that offer trading in virtual assets classified as securities may seek Type 1 and Type 7 licences from the SFC.

Enforcement

China Forestry Liquidators File Lawsuit Against Pre-IPO Auditor

By Editors | 05/11/2019

The plaintiffs allege that KPMG “negligently failed to identify that they were the victims of a serious and pervasive false accounting by former members of executive management.”

Fintech / Regtech

SFC Issues Guidance on Outsourcing of Data Storage

By Editors | 01/11/2019

Licensed corporations must ensure cyber and operational risks are properly mitigated and that the SFC’s access to regulatory records is not restricted or otherwise undermined.

Enforcement

SFC Fines China Rise for Short Selling, Cross Trading Breaches

By Editors | 31/10/2019

China Rise’s former CEO placed 199 illegal short selling orders in 2014, and an unnamed senior manager executed cross trades at a price detrimental to the client.

Securities / Derivatives

HKEX Issues Guidance for Overseas Companies Seeking HK Listings

By Editors | 29/10/2019

The guidance materials have been enhanced to improve access to the Hong Kong market and to facilitate the application process.

Market Infrastructure

Regulatory Data: Arrows for the Quiver?

By Hannah Cassidy | 25/10/2019

Banks need to be cognisant of how the data they provide to regulators is being used, says Herbert Smith Freehills in its 2019 Global Bank Review.

Enforcement

IPO Sponsors, Underwriters Are ‘Guardians of Market Quality’: SFC

By Manesh Samtani | 22/10/2019

The SFC expects sponsors to conduct sufficient due diligence to properly understand and assess the companies seeking to be listed, and to ensure red flags are properly followed up.

AML / KYC

Stock Connect to Launch Southbound Investor ID Regime “Soon”

By Editors | 12/10/2019

The launch of the investor identification regime for southbound trading will mark the first time mainland investors will have their personal information shared with Hong Kong’s regulator.

Securities / Derivatives

UPDATED – SFC to Raise Investor Compensation Limit

By Editors | 09/10/2019

Respondents to an April 2018 consultation strongly supported an increase in the compensation limit, among other proposals, which the SFC expects to implement in early 2020.