On 1 February 2019, ASIC announced the launch of the Global Financial Innovation Network (GFIN), which is a group of 28 international organisations including ASIC. The network was created to support financial innovation in the interests of consumers. GFIN invites applications from firms to be part of a pilot to test innovative financial products, services or business models across multiple jurisdiction. For further detail, please click here
On 4 February 2019, ASIC and APRA responded to the Royal Commission Final Report on misconduct in the banking, superannuation and financial services industry. The Royal Commission’s report identified a range of areas where the regulation and supervision of FIs must be strengthened. For further detail, please click here & here
On 11 February 2019, APRA provided a further update on the implementation of the Royal Commission’s recommendations, in which APRA decided to implement 9 out of 10 recommendations, which requires APRA’s direct attention, by the end of 2020. APRA also published a table of its plan in relation to specific recommendations contained in the recommendations. For further detail, please click here
On 14 February 2019, ASIC issued a consultation paper to update its guidance on responsible lending. The consultation intends to review and update the guidance to help holders of an Australian credit licence to understand ASIC’s expectations for complying with the responsible lending obligations. For further detail, please click here
On 15 February 2019, ASIC announced that it will soon be able to pursue harsher civil penalties and criminal sanctions against banks, their executives and others who have breached corporate and financial services law, after these laws were passed by Senate. As such, the maximum prison penalties for the most serious offences will increase to 15 years and maximum civil penalties for individuals will increase to AU$1.05 million and can also take in to account profits made. For further detail, please click here
On 21 February 2019, ASIC welcomed its new whistleblowing laws, which improves the protections available for whistleblowers who report company misconduct. The new laws expanded the definition of whistleblowers to include both current and former employees, officers, contractors, and their spouses and dependants, and anonymous disclosures. For further detail, please click here
On 27 February 2019, ASIC and the Abu Dhabi Global Market signed an agreement to streamline company registration and facilitate the exchange of information, expertise and secondment opportunities in both jurisdictions. For further detail, please click here
On 28 February 2019, ASIC published its report on licensing and professional registrations 2017-2018. This report provides useful insights about regulatory and policy issues that impact ASIC’s licensing and registration application related activities. For further detail, please click here
On 4 February 2019, former financial adviser, James Gibbs, pleaded guilty to theft of AU$4.88 million, during his time as a financial planner and director of James Gibbs Investments Pty Ltd. ASIC alleged that between 20 August 2009 and 30 July 2016, Gibbs stole approximately $4.88 million of funds that he was managing for his clients. For further detail, please click here
On 7 February 2019, ASIC issued two infringement notices against Australian Corporate Bond Company Pty Ltd and ordered the Company to pay a penalty of AU$25,200 for making misleading statements in the promotion of Exchange Traded Bonds (XTBs) on its website between May to December 2017. For further detail, please click here
On 11 February 2019, Mr Darren James Lind, a former managing director of a mining company was sentenced to 18-months imprisonment, with a minimum custodial term of 9 months for insider trading. Mr Lind was found guilty of two counts of insider trading in shares of ASX listed mining exploration company Minotaur Exploration Ltd. For further detail, please click here
On 11 February 2019, the Administrative Appeals Tribunal (AAT) reduced its bans on Mark Alexander Landau and Marcus Roderick Campbell from 10 years to 18 months. The former Macquarie Advisers bans were reduced due to the AAT finding that none of the individual clients, nor Macquarie, suffered losses, the misconduct involved isolated acts and was not for personal gain. For further detail, please click here
On 12 February 2019, a former FX trader, Andrew Donaldson, was sentenced to 18 months imprisonment for falsifying trade entries in Deutsche Bank’s internal financial records and systems. It was found that between 25 July 2013 to 25 June 2014, while working as a FX, options and futures trader with Deutsche Bank, Mr Donaldson made a total of 85 false entries into Deutsche Bank’s internal records. For further detail, please click here
On 15 February 2019, ASIC announced that the Supreme Court of Queensland issued an order to restrain Advanced Wealth Financial Services Pty Ltd and Richard Gardner from carrying on unlicensed financial services business. Mr Gardner and Advanced Wealth had advised clients to set up self-managed superannuation funds (SMSFs) to facilitate the purchase of investment properties in which Mr Gardner received substantial commissions. For further detail, please click here
On 25 February 2019, ASIC permanently banned former insurance broker, Mr James Sheehan, for engaging in dishonest conduct and not having good fame or character. ASIC found between 1 March 2016 to 17 November 2017, Mr Sheehan engaged in dishonest conduct by instructing his clients to pay insurance premiums into accounts controlled by him and used premiums for his personal benefit. For further detail, please click here
On 28 February 2019, the AAT upheld ASIC’s decision to refuse to grant a limited AFS licence to Superannuation Warehouse Australia Pty Ltd on the ground that the sole director and nominated Responsible Manager, Mr Johann Heinrich Preller, had failed to demonstrate an adequate understanding of the general obligations that would apply to a licensee. For further detail, please click here
A media search did not find any relevant actions in Cambodia during February.
On 1 February 2019, the CSRC issued a consultation on the ‘Interim Administrative Provisions on External Access to Trading Information Systems of Securities Companies’. The provisions set out the proposed requirements for externally accessing the trading information systems of securities companies and highlight the general principles, eligibility and scope of access, and terms to be included in investor agreements. It also sets out the proposed management and control requirements in relation to due diligence, transaction monitoring, exception and emergency handling, record keeping, internal training, regulatory reporting etc. For further detail, please click here (Chinese only)
On 1 February 2019, the National Association of Financial Market Institutional Investors (“NAFMII”) issued Guidelines for Debt Financing Instruments of Overseas Non-financial Enterprises for Trial Implementation. The Guidelines require the debt financing instruments issued by overseas non-financial institutions to be registered with the NAFMII and underwritten only by qualified FIs. Supplementary information must be disclosed or submitted for review in the event of either material events or non-material events that may affect investment decisions and the issuance documents must be published according to relevant rules. For further detail, please click here (Chinese only)
On 15 February 2019, the CSRC issued a consultation on the Provisions on Paragraph 5, Item 1 of Article 70 of Regulation on the Administration of Futures Trading. The Provisions set out the proposed constituting elements of 4 major manipulation offences in the futures market, namely “false disclosure”, “confusing others”, “scalping” and “concerning the market”. For further detail, please click here (Chinese only)
On 21 February 2019, the CBIRC issued Administrative Measures for Anti-Money Laundering and Counter-Terrorism Financing for Banking Financial Institution, which sets out the AML/CTF requirements for banks in relation to the internal control requirements and the respective supervisory duties of the CBIRC. The internal control requirements include risk management, organisational structure, internal audit, information system, training, etc. The Measures also describe the market entry requirements for banks, including the need to conduct criminal background screening of shareholders, directors and senior management, and AML/CTF checking on shareholders and their controlling parties. For further detail, please click here (Chinese only)
On 22 February 2019, the CSRC issued a consultation on the Guidelines for Manager of Managers (“MoM”) Products of Securities and Funds Operators. The Guidelines clarify the issues relating to MoM products including the definition of MoM products, the qualification criteria for the manager of managers and the investment managers and their respective duties. The Guidelines also provide further guidance on the operation of MoM products and set out requirements in relation to the internal control and risk management systems of MoM products. For further detail, please click here (Chinese only)
On 22 February 2019, the CSRC sought public comments on the Measures for the Supervision and Administration of Publicly Offered Securities Investment Fund Distributors. The draft measures are based on the existing ‘Measures for Administration of Securities Investment Funds Distributors’, and set out the proposed requirements in relation to publicly offered securities investment funds distributors. The proposed requirements include clarifications on the scope of the distribution, the consolidated and improved licensing criteria, the enhanced regulations on their operations, the enhanced internal controls and risk management requirements, and the enhanced exit mechanism. For further detail, please click here (Chinese only)
On 26 February 2019, the CBIRC issued the ‘Notice on Tightening Management of Intermediary Channel Business of Insurance Companies’, which imposes various duties on insurance companies which are in cooperation with intermediaries. Insurance companies are required to establish dedicated spaces and functions in their headquarters for their intermediary channel business. For supervising and managing the intermediaries, insurance companies must establish internal controls, risk management systems, compliance & audit systems and reporting systems in accordance with the Notice. For further detail, please click here (Chinese only)
On 22 February 2019, the CSRC imposed a fine of RMB 18 million on Li Fu, former president of Nanyue Bank, and his wife Liu Dan for insider trading over the shares of listed steel wire producer Ningxia Xinri Hengli. Li Fu was found to have communicated closely with an insider, while irregular transactions were effected by Liu Dan’s security account. For further detail, please click here (Chinese only)
On 22 February 2019, the CSRC announced the completion of the 2018 special on-site inspections of 264 corporate bond issuers. The CSRC found major shortcomings in both the management and use of funds raised and the information disclosures. The CSRC already issued warnings, ordered rectifications and imposed administrative penalties on the defaulters. For further detail, please click here (Chinese only)
On 22 February 2019, the CSRC imposed a fine of RMB 60,000 on Liu Xiaobin, a former director of Shenzhen Bai Dimensional Storage Technology Co Ltd for insider trading over the shares of the listed company Wuxi Best Precision. Liu Xiaobin was found to have, by virtue of his position at Bai Dimensional, contacted an insider in possession of the information regarding Best Precision’s plan to acquire Bai Dimensional and traded the shares of Best Precision using another individuals security account. For further detail, please click here (Chinese only)
On 22 February 2019, the CSRC imposed a fine of RMB 250,000 & RMB 30,000 respectively on Li Jingang and Zhang Xinhong for insider trading over the shares of Western Gold Co Ltd. Li was found to have been frequently communicating with an insider and traded the shares using another individuals security account, while Zhang, whose spouse was an insider, was found to have irregularly traded the shares with her own security account. For further detail, please click here (Chinese only)
On 1 February 2019, the SFC released a new set of licensing forms and self-assessment questionnaires, which came into use from 11 February 2019, while the current forms will still be accepted by the SFC until 11 April 2019. Major changes to the new forms include the requirement for the provision of operating expense projections for new corporate applicants and the streamlining for new substantial shareholder applications. The new self-assessment questionnaires will be used for licensed corporations to self-assess general and specific business profiles as well as internal controls and will also be required for certain license applications. For further detail, please click here
On 1 February 2019, the HKMA issued a circular setting out the regulatory requirements in respect of remote on-boarding of individual customers. For risk mitigation purposes, technology solutions adopted by AIs must allow them to ascertain the genuineness of identification materials and use appropriate technology, e.g. biometric solutions, to link the customer to the identity provided. The HKMA also reminded AIs to do ML/TF risk assessments prior to the launch of a remote on-boarding initiative. For further detail, please click here
On 11 February 2019, the SFC issued a circular to notify LCs and AEs of the gazettal of the updated lists specifying terrorist and terrorist associates, and other individual, groups, undertakings and entities subject to relevant sanctions under the United Nations (Anti-Terrorism Measures) Ordinance and the United Nations Sanctions (ISUL and Al-Qaida) Regulation. LCs and AEs are expected to consider the updated designations in their relevant screening and review procedures. For further detail, please click here
On 20 February 2019, the Legislative Council passed the Inland Revenue (Profits Tax Exemption for Funds) (Amendment) Bill 2018. Under the Bill, all privately offered onshore and offshore funds operating in Hong Kong, regardless of their structure, size or purposes, can enjoy profits tax exemption for their transactions in specified assets subject to meeting certain conditions. An eligible fund can also enjoy profits tax exemption from its investment in both overseas and local private companies. For further detail, please click here & here
On 21 February 2019, the SFC published the latest issue of its Regulatory Bulletin: Listed Corporations to provide an update on how it exercises its powers under the Securities and Futures (Stock Market Listing) Rules to fulfil its statutory object of protecting investors. The bulletin highlights some of the SFC’s recent actions to tackle market misbehaviour and case studies to illustrate how the SFC intervenes at an early stage where it has serious concerns about IPO applications or post-IPO corporate transactions. For further detail, please click here
On 22 February 2019, the SFC published a new set of AML/CFT FAQs which superseded the previous FAQs published in March 2012. The FAQs deal with the implementation of some provisions of the latest AML/CFT guidelines by illustrating certain provisions in the guidelines. The SFC reminds both LCs/AEs to consider the FAQs in meeting applicable AML/CFT statutory and regulatory requirements. For further detail, please click here & here
On 28 February 2019, the HKEX announced its Strategic Plan 2019-2021 which sets out its vision and strategic objectives for the next three years. To support its strategic objectives, the HKEX decides to make further investments in talent, capabilities, and developing the right corporate culture. For further detail, please click here & here
On 4 February 2019, the SFC revoked the licence of W. Falcon Asset Management (Asia) Limited for a range of breaches and misconducts surrounding its long-time practice of window-dressing its liquid capital. Falcon was found to have, starting from its licence applications, included cheques issued by one of its directors, which were all dishonoured upon presentation, as part of its liquid capital calculations, over the period between 2014 and 2017. For further detail, please click here & here
On 14 February 2019, the Court dismissed a judicial review application by an SFC-licensed corporation and its responsible officer against the SFC in connection with an investigation of a suspected market manipulation in the shares of a Japan-listed company. The SFC co-operated with the Japan FSA and Securities and Exchange Surveillance Commission in the investigation and used its statutory powers under the SFO to compel the applicants to provide information and materials. For further detail, please click here
On 18 February 2019, the SFC reprimanded Guosen Securities (HK) Brokerage Company Limited and fined HK$15.2 million for failing to comply with AML/CFT regulatory requirements when handling third party fund deposits. Guosen was found to have processed more than 2,200 suspicious third party deposits totalling over HK$2.3 billion with over 100 of Guosen’s client’s having received third party deposits incommensurate with their financial profiles. Guosen only began to report the suspicious third party deposits after an SFC review had found them suspicious. For further detail, please click here & here
On 19 February 2019, the Court sentenced Mr Au-Yeung Siu Pang, a former group finance manager of China CBM Group Company Limited, to 4 months of imprisonment and fined him HK$120,000 after he was convicted of insider dealing in China CBM shares in a prosecution brought by the SFC. Mr Au-Yeung, who took part in the audit process related to China CBM’s financial results for the year ended 31 December 2011, became aware of certain negative information relating to the company which was not yet disclosed to the public at the time. His father and he subsequently sold a total of 1,100,000 China CBM shares a few days before the announcement of the information. For further detail, please click here
On 26 February 2019, the Court dismissed the appeal by Mr Andrew Left of Citron Research against the determination of the MMT on points of law under the SFO. This came after the rejection of a separate application to leave by Left against the determination of the MMT on the questions of facts following the MMT’s findings of misconduct against him over the publication of a research report on Evergrande Real Estate Group Limited in 2012. For further detail, please click here & here
On 27 February 2019, the SFC suspended the licence of Mr Wu Yinong, a former responsible officer of China Merchants Securitise (HK) Co., Limited (“CMS”), for 18 months for breaching the SFC’s Code of Conduct and Sponsor Guideline. Wu was a sponsor principal in charge of supervision of the execution of a listing application in 2009 for which CMS was one of the sponsors. Among other things, Wu was found to have failed to exercise due skill, care and diligence in handling the listing application, and ensure the maintenance of appropriate standards of conduct and adherence to proper procedures by CMS. For further detail, please click here
On 11 February 2019, SEBI issued a consultation on circuit filters for derivative stocks in cash segments. The consultation proposes the introduction of either hard circuit limits or a combination of dynamic and hard limits on stocks that are part of the derivatives market. For further detail, please click here
On 15 February 2019, RBI released the draft directions on Financial Benchmark Administrators and invited comments from market participants. The regulatory framework for financial benchmarks intends to improve the governance of the benchmark processes in markets regulated by the RBI. For further detail, please click here
On 28 February 2109, RBI and the Bank of Japan signed a Bilateral Swap Arrangement to swap their local currencies against USD for an amount of up to USD 75 billion. For further detail, please click here
On 13 February 2019, RBI imposed a monetary penalty of INR 50,000 on the Karimnagar Co-operative Urban Bank Ltd for violating the RBI guidelines on submission of compliance report. For further detail, please click here
On 22 February 2019, SEBI ordered to restrict two brokers, Motilal Oswal Commodities Broker and India Infoline Commodities, from functioning as commodity brokers on account of their alleged role in the settlement scam at the National Spot Exchange Ltd (NSEL). SEBI, through two separate orders, rejected the application for registration of the two entities and further directed that all existing clients must be allowed to move to other brokerages within 45 days. This is the first set of actions against large brokerages alleged to have colluded with the spot exchange for marketing of the pair contracts wherein clients were assured fixed returns of between 13% and 16% per annum. For further detail, please click here & here
On 1 February 2019, the OJK announced a list of 99 registered and licensed FinTech operators in Indonesia and reminded the public to use those peer to peer lending FinTech services. For further detail, please click here (Bahasa Only)
On 19 February 2019, the OJK announced its decision to continue the strengthening of its duties and authority to improve the financial services industry and prevent the money laundering, through cooperation with the Ministry of Home Affairs and the Financial Transaction Reports and Analysis Center. For further detail, please click here (Bahasa Only)
On 13 February 2019, the OJK’s Investment Alert Task Force ordered 231 unlicensed FinTech Peer-To-Peer Lending firms to cease operations. For further detail, please click here (Bahasa Only)
On 18 February 2019, the OJK issued orders to restrict the business activities of Insurance Brokerage Company, PT Indonesia Insurance Brokers, for failing to comply with a number of OJK regulations. The order requires the company to ensure compliance with the regulations within 3 months and if it does not, it will be subject to further sanctions. or further detail, please click here (Bahasa Only)
On 8 February 2019, the FSA published a summary regarding the ongoing cooperation between the FIs and electronic settlement agents. This is as part of Article 10 (1) of the supplementary provisions of the “Act for Partial Revision of the Banking Act”, which requires FIs to prepare and publish their respective policies on cooperation and collaboration with electronic settlement agents by March 1 2018. For further detail, please click here (Japanese only)
On 13 February 2019, the FSA announced its proposed amendments to the “Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism”. The amendments aim to further enhance FIs’ risk management for AML/CFT. The amendments will make it mandatory for FIs to clarify the customer risk assessment process under the section of “Customer Due Diligence” of the Guidelines. For further detail, please click here (Japanese only)
On 13 February 2019, the FSA finalised the amendments to its regulatory notices and guidelines pertaining to the Pillar 3 disclosure requirements in respect of the review of interest rate monitoring methods. The amendments deal with the disclosure of interest rate risks of banks subject to domestic standards, and will be effective on 31 March 2019. For further detail, please click here (Japanese only)
On 26 February 2019, the FSA announced the proposed amendments to the regulatory notice designating transactions and lending/borrowing to be excluded from the transactions subject to the regulations on “Financial Instruments Obligation Assumption Business”. The amendments intend to additionally designate certain transactions relating to the buying/selling and lending/borrowing of securities that are cleared by clearing organisations in the French Republic as transactions to be excluded from the transactions subject to the regulations on “Financial Instruments Obligation Assumption Business”. For further detail, please click here (Japanese only)
On 6 February 2019, the Kinki Local Finance Bureau took administrative action against a notifier of SPBQII for failing to file the mandatory documents in full, in violation of an order for the collection of reports, ordering the improvement of the notifier’s business operations. For further detail, please click here (Japanese only)
On 21 February 2019, the FSA imposed an administrative penalty charge against a corporation for committing insider trading regarding stocks of Y.S.FOOD CO.,LTD. by using information received from an officer of the contract negotiator with the entity. For further detail, please click here (Japanese only)
On 21 February 2019, the FSA imposed an administrative penalty charge against an individual for recommending the purchase of stocks of Oisix ra daichi Inc. based on insider information obtained as an employee of the entity to a non-insider, who purchased the stocks based on the employee’s recommendation. For further detail, please click here (Japanese only)
On 21 February 2019, the FSA imposed an administrative penalty charge against an individual for committing insider trading of the stocks of DREAM VISION CO., LTD. by using information received from an employee of the contractor with the entity. For further detail, please click here (Japanese only)
On 11 February 2019, the FSC proposed a Bill on P2P lending to help the sector grow into one of the most innovative FinTech services and provide both investors and borrowers with better protection. The proposed Bill intends to establish a separate new legislation for P2P lending business. For further detail, please click here
On 25 February 2019, the FSC announced that it is looking to establish an open banking system to grant FinTech firms access to bank payment networks. The transition to an open banking system will proceed in 3 phases namely; banks’ voluntary agreement on open banking system, legislation on open banking and FinTech firms’ direct access to financial payment system. The FSC also plans to overhaul the current regulatory framework on electronic financial business to promote innovation and competition in financial payment services. For further detail, please click here
A media search did not find any relevant enforcements for Korea during February.
On 11 February 2019, the SC announced that it will be reviewing the recommendations proposed by the Institute for Capital Market Research in relation to the Malaysia venture capital industry. The independent report issued by the Institute recommended, among other things, the establishment of a dedicated government agency to bridge the funding gap for nascent and high-growth ventures, the establishment of funds-of-funds with matching elements and appropriate incentive mechanisms, the creation of a single platform for market assess, and further liberalisation of venture capital tax incentives. For further detail, please click here
A media search did not find any enforcements for Malaysia during February.
On 8 February 2019, the FSC issued a Communique on the regulatory framework for the Custodian Services (Digital Asset) License, which will be effective from 1 March 2019 onwards. This will make the Mauritius IFC the first jurisdiction globally to offer a regulated landscape for the custody of Digital Assets. Holders of a Custodian Services (Digital Asset) Licence will be required to comply with the applicable framework for AML/CFT, in line with international best practices. For further detail, please click here
A media search did not find any enforcements for Mauritius during February.
A media search did not find any relevant articles or enforcement actions for Myanmar during February.
A media search did not find any relevant articles for New Zealand during February.
On 25 February 2019, the Tauranga District Court sentenced Robert Ian South and Murray Byron Provan to four years and six months in prison. Mr. South and Mr. Provan were found guilty of theft by a person in a special relationship and deception respectively, on charges brought by the FMA. Both the men were found to have taken NZ$605,000 and spent it on themselves rather then investing in a software company. For further detail, please click here
On 4 February 2019, the BSP announced that it has streamlined the licensing requirements for BSP Supervised Financial Institutions (BSFIs) applying for special authorities, through a set of revised guidelines. The guidelines will require the application of a risk-based approach to the licensing process and categorise licenses into 3 categories namely, Types A, B, and C. The requirements set out for each category are proportionate to the magnitude of risks that may arise from engaging in a specific activity and take into account the capability of the BSFI to manage the risks. For further detail, please click here
On 22 February 2019, the BSP announced that it has streamlined the licensing requirements for electronic payment and financial services (EPFS) for providing safer and efficient channels for financial services. Under the enhanced EPFS licensing policy, FIs that provide basic services or those that enable clients to access information on their deposit, loan, and other accounts or receive funds in electronic means must simply notify the BSP within 30 days prior to the launch of those services. For further detail, please click here
On 14 February 2019, the SEC arrested 31 solicitors and agents of “Roses 4 U” for soliciting online investments without a license to offer/sell securities. For further detail, please click here
On 25 February 2019, the SEC issued a cease and desist order against Kapa-Community Ministry International Inc. to stop the entity from soliciting investments from the public without the necessary license and in a manner resembling a Ponzi scheme. For further detail, please click here
On 6 February 2019, CBR released an Ordinance to set forth indicators enabling conditional classification of professional securities market participants as small, middle-sized and major ones. Professional participants are classed into categories on the basis of the volume of broker / trust management transactions, the number of customers as per brokerage / trust management contracts, the cost of securities recorded in depository accounts and the number of persons with personal accounts in the securities registrar. This minimal set of criteria will enable professional participants themselves to select a category they belong, selecting optimal regulatory compliance for their business. For further detail, please click here
On 15 February 2019, CBR announced its recommendations on information security when working with biometric identification. In particular, the recommendations set forth rules for mitigating risks when gathering biometric personal data, processing individuals’ requests and personal information, and conducting remote identification. For further detail, please click here
On 21 February 2019, CBR published its plan for adopting regulations in 2019 to boost the transparency of its regulatory policy and to ensure the predictability of regulatory changes for market players. For further detail, please click here
On 22 February 2019, CBR finalised the legal base for regulating investment adviser activities, which consists of the requirements for investment adviser activity and the procedure for the accreditation of computer programmes that are used to give individual investment recommendations. The requirements stipulate that an investment adviser should give advice in accordance with their client’s investment profile determined based on the information obtained from the client and recorded in a special document. For further detail, please click here
On 28 February 2019, CBR published its Guidelines for board of directors of financial organisations. The Guidelines stipulate the key principles governing the functions and obligations carried out by members of the board of directors and set forth recommendations on the proper execution thereof. For further detail, please click here
A media search did not find any enforcements for Russia during February.
On 4 February 2019, the MAS published a set of FAQs on the definition of accredited investor and the ‘Opt In Process’. For further detail, please click here
On 7 February 2019, the MAS issued a consultation on the proposed amendments to the Banking Act. The amendments intend to strengthen the licensing and regulation of banks and credit card/charge card licensees, formalise existing supervisory requirements and clarify other technical and administrative issues. For further detail, please click here
On 7 February 2019, the MAS issued a consultation on ‘Outsourcing by Banks and Merchant Banks’. The consultation seeks feedback on proposed revisions to the regime governing banks’ and merchant banks’ outsourcing arrangements, including proposed amendments to the Banking Act. The consultation also proposes the issuance of ‘Outsourcing Notices’ on material outsourcing arrangements that are identical for both banks and merchant banks. For further detail, please click here
A media search did not find any enforcements for Singapore during February.
On 25 February 2019, the CBSL notified the FATF’s endorsement on the progress made by Sri Lanka. The FATF has made the initial determination that Sri Lanka has completed its action plan and warrants an on-site assessment to verify that the implementation of Sri Lanka’s AML/CFT reforms, which will be expected to be in May 2019. For further detail, please click here
On 7 February 2019, the SEC charged Mr. Vidanalage Juvenal Aruna Melan Soysa in Court for failing to appear when summoned by the SEC to record a statement with respect to certain transactions that occurred in his CDS Account. Mr. Soysa has been evading the SEC without providing his statement, which compelled the SEC to file action against him in the Court. For further detail, please click here
On 25 January 2019, the FSC lifted the investment limit of “ETF feeder funds” to allow a master fund to include smaller ETFs in its investment scope for meeting market needs. Specifically, the investment of an ETF feeder fund in its master ETF fund may exceed 10% of the net asset value of the master fund, and the ETF manager is allowed to manage the ETF feeder fund concurrently. For further detail, please click here (Chinese only)
On 12 February 2019, the FSC introduced amendments to “Directions Concerning the Establishment of Foreign Branches by Domestic Banks”. According to the amendments, the FSC will prioritise the applications submitted by domestic banks, having excellent global management capabilities and planning to establish branches in a country or region where they have no operations yet. The amendments also enhance the flexibility of on-job trainings for staff of overseas branches. For further detail, please click here (Chinese only)
On 25 February 2019, Taiwan Stock Exchange announced the establishment of the trading simulation platform for better transition to the continuous trading system. The FSC had announced that the securities market will formally introduce continuous trading system on 23 March 2020. The trading simulation platform is scheduled to operate from 25 March 2019 to 31 May 2019. For further detail, please click here (Chinese only)
On 25 January 2019, the FSC imposed a fine of NT$6 million on Shin Kong Life Insurance Co., Ltd. and issued 16 rectification orders for violating the Insurance Act and relevant regulations in handling interested party transactions, procurement operations, funds utilisation, financial asset valuation and telephone marketing fee collection. The FSC also banned the entity from trading in stocks issued by interested parties using the after-hours fixed-price trading and large amount pairs trading for two years. For further detail, please click here (Chinese only)
On 26 February 2019, the FSC imposed a fine of NT$1 million on Taishin International Bank for violating the relevant AML regulations. The bank was found to have failed to report 60 large-volume transactions to the Ministry of Justice Investigation Bureau. For further detail, please click here (Chinese only)
On 3 February 2019, the SEC and the NBC signed an MoU on Cooperation in the Areas of Payments and Financial Innovation to enhance the collaboration on financial innovations and payment services and promote the usage of local currencies. For further detail, please click here
On 21 February 2019, the SEC announced the tech-led capital market development plan for 2019-2021 to enhance the market efficiency and facilitate fundraising and investment activities. Key areas of focus include promoting the quality and accessibility of investment advice and financial planning services, digitalisation of the capital market, creating funding opportunities and reforming regulations and regulators. For further detail, please click here
On 25 February 2019, the SEC issued a consultation on its proposed rules to allow securities brokers and derivatives agents to offer services on asset allocation and investment planning in the forms of program trading and portfolio advisory with execution. The draft rules intend to provide a waiver of private fund licence and derivatives fund manager licence for the services on asset allocation and investment planning, if intermediaries make a prior agreement with clients on the services and the clients open a separate trading account for this purpose. For further detail, please click here
On 28 February 2019, the SEC updated the list of cryptocurrencies eligible for investment in ICOs and base trading pairs on digital asset exchanges. The list will be updated periodically. For further detail, please click here
A media search did not find any enforcements for Thailand during February.
A media search did not find any relevant articles or enforcement actions for Vietnam during February.
* These fields are required.
Please send any comments or suggestions on other information you would like included in the next issue to email@example.com. In addition, if there are others in your organisation who you believe will benefit from this newsletter, please do let us know.