On 3 September 2019, APRA updated its Enforcement Approach to outline how it will increase transparency around the use of its formal enforcement powers. The revised document also sets out APRA’s intention to take stronger action against institutions that fail to meet their legal obligations to report data to APRA in full and on time. For further detail, please click here
On 5 September 2019, APRA released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the June 2019 quarter. For further detail, please click here
On 10 September 2019, ASIC extended licensing relief for FFSPs to 31 March 2020, that allows them to provide certain financial services to Australian wholesale clients without needing to hold an AFS licence. The extension is due to a pending consultation, ‘Consultation Paper 315: Foreign financial services providers: Further consultation’. For further detail, please click here
On 11 September 2019, ASIC provided its second update on its actions in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Royal Commission). The Update outlines a number of measures across the organisation by ASIC to implement the recommendations and referrals from the Royal Commission. For further detail, please click here
On 17 September 2019, ASIC remade ‘sunsetting’ class order about changing scheme constitutions, which was about to expire on 1 October 2019. The new instrument continues to provide relief in certain situations to vary how the constitution of a registered scheme may be modified, or repealed and replaced with a new constitution. For further detail, please click here
On 19 September 2019, ASIC remade Class Order, ‘Departed former temporary residents superannuation – Disclosure relief’, which was due to expire on 1 October 2019. The new instrument, ‘ASIC Corporations Unclaimed Superannuation – Former Temporary Residents Instrument 2019/873’, will continue to provide relief for trustees of regulated superannuation funds from certain obligations in the Corporations Act 2001. For further detail, please click here
On 23 September 2019, CFT published its Quarterly Statement regarding risks facing the Australian financial system, regulatory issues and developments relevant to its members. For further detail, please click here
On 23 September 2019, ASIC published its latest report on its oversight of corporate finance activity between January to June 2019 and an update on specific focus areas for the next six months. The report provides statistical data and includes relevant guidance about ASIC’s regulation of fundraising transactions, mergers and acquisitions, experts and corporate governance issues. For further detail, please click here
On 28 September 2019, APRA issued a consultation on new data collection to assess private health insurance reforms. The Data Collection Solution will replace Direct to APRA (D2A) as a system for reporting entities to submit data to APRA. It will be easier to use and require less maintenance. For further detail, please click here
On 12 September 2019, ASIC used its product intervention power to ban a model of lending in the short term credit industry which has been found to cause significant consumer detriment. In its first deployment of this power, ASIC targeted a particular business model where a short term credit provider and its associate charged fees under separate contracts. For further detail, please click here
On 17 September 2019, as a result of ASIC’s and the Australian Federal Police’s (AFP) year-long joint investigations into a multi-layered cybercrime activity, a woman was due to appear before the Court to be charged with a range of offences. The investigations were into a major fraud and identity theft syndicate, which resulted in alleged thefts from the superannuation and share trading accounts of innocent victims worth of millions of dollars. For further detail, please click here
On 4 September 2019, ASIC commenced Court proceedings against the Bank of Queensland concerning unfair contract terms in small business contracts. ASIC alleges that certain terms used by Bank of Queensland in contracts with small businesses are unfair. Such unfair terms include clauses that give lenders, but not borrowers, broad discretion to vary the terms and conditions of the contract without the consent of the small business owner. For further detail, please click here
On 4 September 2019, ASIC commenced Court proceedings against Bendigo and Adelaide Bank concerning unfair contract terms in small business contracts. ASIC alleges that certain terms used by the banks in contracts with small businesses are unfair. Such unfair terms include clauses that give lenders, but not borrowers, broad discretion to vary the terms and conditions of the contract without the consent of the small business owner. For further detail, please click here
On 4 September 2019, ASIC cancelled the AFS license of Platinum Perpetual Global Private Wealth Pty Ltd at the request of the company. The cancellation follows a separate action brought by Western Australian Police Force (WAPF), which has charged a male advisor of the company with eight counts of stealing. According to WAPF’s allegation, the advisor misappropriated approximately AU$948,236.96 of clients’ funds without authorisation. For further detail, please click here
On 9 September 2019, ASIC commenced Court action against Select AFSL Pty Ltd, BlueInc Services Pty Ltd, Insurance Marketing Services Pty Ltd and director Russell Howden over phone sales of life insurance. According to ASIC’s allegation, these companies engaged in unconscionable conduct in dealings with 14 consumers when selling insurance and/or taking payment details over the phone, and when consumers attempted to cancel their insurance policies, among other things. For further detail, please click here
On 10 September 2019, ASIC suspended the AFS license of financial services provider, Financial Options Pty Ltd until 26 February 2020 for failing to meet its license obligations. The company failed to lodge its accounts and audit report for the year ending 30 June 2018, have a dispute resolution system in place, and did not maintain organisational competence or the resources required to provide the financial services covered by its licence. For further detail, please click here
On 18 September 2019, the Court charged Ananda Kathiravelu, a corporate finance director, with conspiracy to commit an offence of market manipulation. For further detail, please click here
On 20 September 2019, the Court dismissed APRA’s application for a finding that IOOF entities, directors and executives had contravened their obligations under the Superannuation Industry Supervision Act. APRA initiated the action last December due to its view that IOOF entities, directors and executives had failed to act in the best interests of their superannuation members. For further detail, please click here
On 27 September 2019, ASIC banned Kyle Marshall from providing financial services for three years for failing to comply with financial services laws and lacking fundamental knowledge and competency relevant to providing financial services. ASIC found Mr Marshall had failed to act in the best interests of his clients and provided inappropriate advises to his inexperienced clients. For further detail, please click here
A media search did not find any relevant articles for Cambodia during September.
A media search did not find any relevant actions in Cambodia during September.
On 9 September 2019, CBIRC issued the ‘Administrative Measures on Affiliated Transactions of Insurance Companies’ to clarify standards of affiliated parties. Insurance companies must establish an affiliate transaction control committee and a management office, which are responsible for the comprehensive management and the daily management of affiliate transactions. Additionally, the committee should oversee the information disclosure procedures. For further detail, please click here (Chinese only)
On 10 September 2019, SAFE decided to scrap the quota limits on Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII). As such, from now on, foreign institutional investors with relevant qualifications are required to inject money into securities investments after registration to carry out the business. SAFE is also amending relevant laws and regulations to abolish the filing and approval procedures. For further detail, please click here (Chinese only)
On 12 September 2019, CSRC issued the ‘Guidelines for the Regulation of Venture Capital Funds of Stock Exchanges’. Venture capital funds are established to make up major economic losses and ensure the proper daily business activities of securities trading. Stock exchanges will be required to outline the daily responsibilities of the venture capital fund management institutions and submit a report to CSRC within 10 working days, illustrating how the venture capital funds are being used after each use. For further detail, please click here (Chinese only)
On 18 September 2019, SAFE issued the ‘Guidelines on the Declaration of Balance of Payments Statistics via Banks’ (2019 edition) to be effective from 1 October 2019. The Guidelines update the previous requirements and answer the questions regarding the new reporting of balance of payments. It simplifies the requirements on declaration of principal under QFII and adds certain requirements to be fulfilled relating to investment channels including Panda bonds, depository receipts, Shenzhen Stock Exchanges and foreign institutional investor’s investment in the interbank bond market. For further detail, please click here (Chinese only)
On 18 September 2019, CBIRC issued an exposure draft on ‘Measures of the China Banking Regulatory Commission for On-site Inspections’, to improve the quality and efficiency of on-site inspection for the banking and insurance sector. The consultation divides on-site inspections into 3 categories which are, routine inspection, interim inspection and ad hoc investigation and focuses on information sharing and joint-action mechanism between relevant departments and regulators. CBIRC may hold regulatory talks with directors and senior management of the institutions under inspections to ask for clarification about the issues identified during inspection. For further detail, please click here (Chinese only)
On 20 September 2019, CBIRC issued an exposure draft on ‘Administrative Measures for Net Capital of Wealth Management Subsidiary Units of Commercial Banks’. It sets out regulatory standards on and requirements for calculating net capital and risk capital. The net capital of commercial bank’s wealth management subsidiaries should not be less than RMB500,000,000 or 40% of the subsidiary’s net assets and the risk capital. If more than 20% of any of such changes, as compared to the previous report, this must be notified with explanations by the subsidiaries to CBIRC. For further detail, please click here (Chinese only
On 27 September 2019, SZSE revised the Implementing Rules for the Trading, Subscription and Redemption of Securities Investment Funds on Shenzhen Stock Exchange to be effective from 21 October 2019. Under the revised rules, trading and clearing method for ETFs listed on SZSE are adjusted from T+1 Delivery versus Payment (DVP) to the A-share method. The cross-market ETFs listed on SZSE will adopt the “in-kind subscription and redemption for SZSE stocks and cash-in-lieu for SSE stocks” arrangement for subscription and redemption. For further detail, please click here (Chinese only)
On 2 September 2019, CBIRC announced its proceedings against 1239 banking and insurance institutions and 1664 responsible persons in the first seven months of 2019 for violating laws and engaging in market disorder, with a total fine of RMB594,000,000. For further detail, please click here
On 6 September 2019, CSRC fined Mr. Wang Jiayu RMB8,670,000 for insider dealing involving one of the largest IT distributors in China called Digital China Group Co. Ltd. Wang contacted the, then, Chairman of Digital China, Mr. Guo and heard the company’s plan to issue shares to purchase assets and raise the supporting funds in advance. He, then controlled other’s accounts to buy shares in Digital China using the inside information. For further detail, please click here (Chinese only)
On 2 September 2019, SFC issued a circular in relation to the reporting of OTC derivatives transactions to the HKMA trade repository dealing with revised technical specifications. There are refinements to existing technical specifications in the Administration and Interface Development Guide (AIDG) maintained by Hong Kong Trade Repository (HKTR). For further detail, please click here
On 6 September 2019, SFC issued a circular regarding the publication of Hong Kong’s Mutual Evaluation Report by FATF. The report assessed Hong Kong’s AML/CFT regime to be compliant and effective overall and made Hong Kong the first jurisdiction in the Asia-Pacific region to have achieved an overall compliant result in the current round of FATF mutual evaluations. For further detail, please click here
On 6 September 2019, HKEX entered into an MOU with Ping An Insurance (Group) Company of China Limited to explore possible areas of cooperation and collaboration in FinTech and data analytics to enhance the region’s financial market ecosystem. For further detail, please click here
On 16 September 2019, SFC issued a circular on the on Mutual Recognition of Funds (MRF) between Switzerland and Hong Kong. The circular specifies the updated requirements relating to eligibility of funds, management companies, offering documents, advertisements etc. For further detail, please click here
On 27 September 2019, SFC issued a consultation on a proposal to regulate depositaries of SFC-authorised CIS. The consultation proposes to regulate trustees and custodians of public funds and as such, depositaries operating in Hong Kong will have to be licensed or registered with the SFC for a new type of regulated activity, RA 13, and be subject to the ongoing supervision of the SFC or the HKMA. For further detail, please click here
On 30 September 2019, SFC issued FAQs on its Guidelines for Securities Margin Financing Activities, to address concerns of the industry about compliance with the benchmarks set out in the guidelines, which will be implemented on 4 October 2019. The Guidelines help brokers identify the financial risks in relation to their securities margin financing business and assist them in properly managing these risks to their excess liquid capital buffers. For further detail, please click here
On 10 September 2019, SFC reprimanded and fined HSBC HK$2.1 million for non-compliance with the telephone recording requirements under the Code of Conduct. HSBC was found to have failed to set up voice recording of some of the telephone lines in its Private Banking Division between 8 April 2017 and 31 January 2018, during which 5,830 client order instructions received through 59 affected telephone lines were not tape-recorded. For further detail, please click here
On 12 September 2019, SFC banned Mr Jacky Cheung Chiu Hung, a former employee of Hang Seng Bank Limited, for two years from 12 September 2019 to 11 September 2021 for conducting three unauthorised transactions in the accounts of a customer between December 2015 and January 2016. Cheung also forged the customer’s signature on the bank’s instruction forms to facilitate the unauthorised transactions. For further detail, please click here
On 16 September 2019, SFC commenced proceedings in the MMT against Mr Tom Tang Chung Yen and Ms Li Yik Shuen, for alleged insider dealing in Meadville shares in 2009. According to SFC’s allegation, Tang had tipped off Li about a proposed sale of Meadville’s principal businesses and Li went on to purchase Meadville shares before Meadville issued an announcement on 16 November 2009. For further detail, please click here
On 27 September 2019, SFC issued restriction notice to KGI Asia Limited to freeze client accounts related to a corporate officer’s suspected breach of duties. The notice prohibits the broker from dealing with or processing certain assets held in several client accounts which are beneficially owned by an individual who is suspected of breaching his duties towards a listed corporation. For further detail, please click here
On 13 September 2019, RBI issued a consultation on ‘Draft Guidelines for ‘on tap’ Licensing of Small Finance Banks’. The draft guidelines stipulate the licensing and registration requirements of small finance banks, eligibility of its promoters, fit and proper criteria and the bank’s corporate structure. For further detail, please click here
On 19 September 2019, RBI requested regulated entities to ensure that they do not have any account in the name of individuals/entities appearing in the lists of individuals and entities, suspected of having terrorist links, circulated by UNSC. For further detail, please click here
On 19 September 2019, SEBI constituted a working group on ‘Social Stock Exchanges’ (SSE) for listing social enterprise and voluntary organisations. The working group will examine and make recommendations with respect to possible structures and mechanisms within the securities market to facilitate raising funds by social enterprises and voluntary organisations. For further detail, please click here
On 20 September 2019, SEBI issued a circular on ‘Risk management framework for liquid and overnight funds and norms governing investment in short term deposits’ to increase the risk management framework for liquid and overnight funds. As such, liquid funds must hold at least 20% of its net assets in liquid assets and if in any case, the exposure in such liquid assets falls below 20% of net assets of the scheme, AMCs must ensure compliance with the above requirement before making any further investment. For further detail, please click here
On 13 September 2019, RBI imposed a monetary penalty of INR 200, 000 on the Mehmadabad Urban Peoples Co-operative Bank Ltd for violating RBI directions on sanction of loans and advances to directors and KYC norms/AML standards. For further detail, please click here
On 5 September 2019, OJK highlighted the benefits, risks and ways of using online loans as alternative funding to encourage the community in making optimal use of such online loans. For further detail, please click here (Bahasa only)
On 24 September 2019, OJK issued the first permit to administer the Fund Management Service through Equity Crowdfunding Share Offer. OJK will regulate and supervise the funding service through the technology-based stock offering to provide legal certainty and protection for parties involved. For further detail, please click here (Bahasa only)
On 6 September 2019, the Investment Alert Task Force proceeded against 123 illegal FinTech lending, 30 un-registered pawn businesses and 49 unauthorised investment offer entities. OJK asked banks to ban FinTech payment system facilitating illegal FinTech lending and to report to the Criminal Investigation Police for such transactions. For further detail, please click here (Bahasa only)
On 30 September 2019, FSA published the summary of the discussion paper “JFSA’s Approach to Compliance Risk Management” to facilitate dialogues between financial institutions and JFSA to enhance their compliance on risk management. FSA also published a report namely “Trends and Issues in Compliance Risk Management”, which collected findings from dialogues with the management of financial institutions and monitoring activities. For further detail, please click here
A media search did not find any enforcements for Japan during September.
On 4 September 2019, FSC issued ‘Guidelines on Financial Companies’ Investment in FinTech Business’. The guidelines expand the scope of FinTech business in which financial companies are allowed to invest by adopting a negative list approach and recent trend in technology and regulatory environment. The guidelines will be implemented from October 2019 on a temporary basis for two years on condition that relevant regulatory changes will be made in the meantime. For further detail, please click here
On 6 September 2019, FSC decided to amend large shareholding reporting requirements under the so-called ‘5% rule’ in an effort to support institutional investors’ shareholder activities. The amendment intends to clarify the scope of shareholder activities to “exercise influence over the management” and apply differential reporting requirements according to shareholding purpose. For further detail, please click here
On 16 September 2019, FSC announced the launching of Korea’s electronic securities system which issues and circulates securities of listed stocks and bonds electronically. The electronic securities system will shorten procedures for the issuance of securities and enable the companies to easily raise funds in capital markets. For further detail, please click here
On 27 September 2019, FSC proposed measures to boost venture capital investments in innovative business. The measures include the introduction of a Business Development Company (BDC) and diversification of fund raising channels with exclusive private offerings for professional investors and small-scale public offerings. For further detail, please click here
A media search did not find any relevant enforcements for Korea during September.
On 19 September 2019, BNM issued a policy document on AML/CFT for the approved money changers licensed under the Money Services Business Act 2011. The policy sets out the minimum requirements and standards that an approved money changer must observe in implementing e-KYC for the customer on-boarding process. For further detail, please click here
On 26 September 2019, Bursa Malaysia issued a consultation on the proposed amendments to the Main and ACE Market Listing Requirements. The consultation proposes to introduce various anti-corruption measures for listed issuers under the Listing Requirements, including establishing and maintaining policies and procedures on anti-corruption and whistle-blowing. For further detail, please click here
On 11 September 2019, the Court sentenced a former deputy executive chairman of a public listed company to a five-year imprisonment and a fine of RM9 million for insider trading offences. Dato’ Ramesh a/l Rajaratnam, was found to have disposed 10,200,800 of MMM shares while in possession of material non-public information. For further detail, please click here
A media search did not find any relevant articles for Mauritius during September.
A media search did not find any enforcements for Mauritius during September.
A media search did not find any relevant articles for Myanmar during September.
A media search did not find any enforcements for Myanmar during September.
On 9 September 2019, FMA published the Capital Markets 2029 report which consists a 10-year vision and growth agenda. The report highlights the capital market’s vital role in supporting the growth and productivity of New Zealand. For further detail, please click here
On 11 September 2019, FMA and Institute of Directors (IoD) released a te reo Māori translation of The Essentials of Being a Director, coinciding with Māori Language Week. The guide was first published by the FMA and IoD in September 2018 which provides a quick reference and overview of some of the role’s key elements such as legal obligations and ethical considerations. For further detail, please click here
On 17 September 2019, the RBNZ and FMA released their findings on life insurers’ responses to the joint Conduct and Culture Review. Overall, the regulators were disappointed by the responses and they observed that significant work is still needed to address the issues of weak governance and ineffective management of conduct risk. For further detail, please click here
On 23 September 2019, the RBNZ decided to report material breaches from banks on its website from next year, in an effort to improve transparency and market discipline. The new policy will require a bank to report promptly to the RBNZ when there is a breach or possible breach of a requirement in a material manner, and report all minor breaches every six months. Only actual material breaches will then be published on the Bank’s website. For further detail, please click here
On 25 September 2019, the Government announced the introduction of a legislation to create an oversight regime for regulating conduct in the banking and insurance sector. The new financial conduct regime will make banks and insurers treat their customers fairly. For further detail, please click here
On 26 September 2019, FMA issued a consultation to seek views on how green bonds and other responsible investment products should be described, labelled and promoted to investors. The consultation intends to seek feedback before publishing official guidance for the market on how to provide investors with a clear understanding of what they are being offered and the risks involved. For further detail, please click here
On 30 September 2019, FMA published a new guide to managed funds and ETFs following research suggesting more New Zealanders are considering alternative investments because of low interest rates. The new guide “Funds for Everyone” provides simple explanations of how managed funds work, including an overview of the fast-growing ETFs market. For further detail, please click here
On 9 September 2019, FMA cancelled the authorisation of Mr Barry Edward Kloogh to act as a financial adviser over concerns of his compliance with his broker obligations under the Financial Advisers Act 2008. For further detail, please click here
On 16 September 2019, the SEC announced that an industry-wide Code of Ethics and Code of Conduct has been drafted by the FinTech Alliance Philippines. The codes of ethics and conduct helps steer FinTech industry towards higher behavioural standards and keep away from ML/TF and fraud attempts. For further detail, please click here
On 11 September 2019, the SEC lodged criminal complaints against Organico Agribusiness Ventures Corp for violating the Securities Regulation Code. Organico was found to have engaged in an unauthorised investment scheme which assured a return of 66.67% without having to do anything other than invest and receive the promised payment from ORGANICO. For further detail, please click here
On 11 September 2019, CBR requested the professional community to analyse the effective regulatory framework of the financial market to reveal outdated and excessive regulations. Proposals will be considered by a special working group and assessed by subgroups representing core financial market activities. CBR will rely on the professional community’s advice when updating the regulatory framework. For further detail, please click here
On 12 September 2019, CBR revoked the baking license of JSC Greencombank for failing to comply with the authorised capital requirement and take effective measures to stabilise it’s financial standing. For further detail, please click here
On 6 September 2019, MAS and the Singapore Academy of Law launched a new initiative to help payment firms access specialised legal services in meeting compliance needs. The Payments Regulatory Evaluation Programme (PREP) connects the payments industry with legal service providers via a streamlined process. Starting with a two-month pilot test run, PREP will only be formally launched at the Singapore FinTech Festival in November 2019. For further detail, please click here
On 26 September 2019, MAS and the Office of Insurance (OIC), Thailand, signed an MoU to strengthen cooperation in insurance supervision. For further detail, please click here
On 24 September 2019, MAS issued the Guidelines on the Regulation of Short Selling, covering the requirements for the reporting of short sell orders and short positions in securities listed on the SGX. The Guidelines provide market participants with a better understanding of how MAS will administer the legislative provisions relating to short selling disclosure and reporting in Part VIIA of the SFA. For further detail, please click here
On 30 September 2019, MAS’s Cyber Security Advisory Panel (CSAP) discussed the latest cybersecurity challenges and strategies relating to the financial industry in Singapore. The discussions concluded the need to strengthen cyber risk culture in financial institutions, enhance cyber monitoring and surveillance capabilities and effective management of cybersecurity risks in IT supply chains. For further detail, please click here
A media search did not find any enforcements for Singapore during September.
A media search did not find any relevant articles for Sri Lanka during September.
On 19 September 2019, CBSL cancelled the license of TKS Finance Limited for failing to keep sufficient capital level, having poor asset quality and continuously failing to repay depositors’ money on demand or at maturity. For further detail, please click here
On 18 September 2019, FSC introduced the ‘Regulations Governing the Financial Investment, Management, and Utilisation of Repatriated Overseas Funds’. The Regulations stipulate the key points on fund management and utilisation of repatriated overseas funds and the limitations on utilisation of such funds in domestic securities and insurance products. For further detail, please click here
On 18 September 2019, FSC announced that the Domestic futures commission merchants (FCMs) can conduct foreign futures commission services through indirect engagements with foreign FCMs. This measure intends to increase business efficiency in foreign futures re-brokerage services. As such, the domestic FCMs are required to conduct trades on a foreign futures exchange through direct business engagement with the foreign futures merchant’s worldwide group affiliates. For further detail, please click here
On 16 September 2019, FSC imposed a fine of NT$500,000 on Global Securities Finance Corporation for violating the Regulations Governing Anti-Money Laundering of Financial Institutions. The company had failed to review its customers’ identity when there is significant change in the information on the identity and background of the customers and thereby failed to re-assess its ML/TF risks. For further detail, please click here
On 23 September 2019, FSC imposed an administrative fine of NT$120,000 on Oriental Securities Co., Ltd. for violating the futures regulations. The company, which engages in futures brokerage business had failed to entrust an appropriate registered account opening personnel to handle the procedures relating to its client opening accounts and personal information amendment. The company’s internal auditor also failed to detect the violation and hence submitted a false report. For further detail, please click here
On 2 September 2019, SEC set up a special support team to ensure investor protection after Bitcoin Co. Ltd. (BX) announced cessation of digital asset exchange services as of 30 September 2019 whereby clients would no longer be able to purchase, sell or trade digital assets via BX.in.th website. For further detail, please click here
On 17 September, SEC and SECC signed an MoU on cooperation and exchange of information on cross-border equity offering and issuance of depositary receipt to promote and support the successful implementation of cross-border offering of securities. For further detail, please click here
On 18 September, SEC issued a consultation on draft regulations relating to annual fee regime for intermediaries to improve equality of fee rate among intermediaries operating the same activities and the ease of doing business. For further detail, please click here
On 19 September, SEC host Asia Pacific Takeovers Regulators Conference 2019, an annual platform for expanding cooperative network within the region and sharing views on regulatory frameworks and related experiences, to further promote takeovers efficiency. For further detail, please click here
A media search did not find any enforcements for Thailand during September.
A media search did not find any relevant articles or enforcement actions for Vietnam during September.
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