[Hong Kong] Focused
Review on Incentive Systems of Front Offices in Retail Banks
HKMA
Circular, 16 Mar 2021
As
part of the ongoing supervisory work of the Hong Kong Monetary Authority to
promote sound culture in the banking sector, the HKMA will conduct a focused
review on the incentive systems of front offices in sale and distribution of
banking, investment and insurance products of retail banks. The Focused Review
aims to dive deeply into a number of specific areas of incentive systems of 20
retail banks. These areas include how they drive behaviours of frontline staff
and affect customer outcomes, in particular their role in minimising potential
misconduct behaviour and mis-selling practices in the sale and distribution of
banking, investment and insurance products. The HKMA will inform the selected
banks of the detailed arrangement of the Focused Review separately.
Full
text: click here
[Hong Kong] SFC
reprimands and fines Yardley Securities Limited $5 million for breaches of
anti-money laundering regulatory requirements
SFC Enforcement News, 17
Mar 2021
The SFC has reprimanded and fined Yardley
Securities Limited (YSL) $5 million for failures in complying with AML/CFT
regulatory requirements when handling third party fund transfers. The SFC
investigation found that, between February and October 2016, YSL failed to take
all reasonable measures to ensure that proper safeguards exist to mitigate the
risks of money laundering and terrorist financing. Despite red flags suggesting
that some of the third party fund transfers in two client accounts between
February and May 2016 were unusual or suspicious, YSL processed and approved
these transfers without conducting proper enquiries and sufficient scrutiny.
Full text: click here
[Mainland China] China
'getting close' to southbound Bond Connect programme
Business Times, 18 Mar 21
China is getting close to a southbound leg
for its Bond Connect programme, Julien Martin, the general manager of the
programme's joint venture (JV) operator said. "Southbound trading will
happen when northbound trading is extremely successful, insofar as we see so
much 'capital in' that there will be need for 'capital out'. I think we are
getting close to this time, and I think this is a place that should be
watched... for this year." Mr Martin told an online briefing.
Full text: click here
