[Hong Kong] Implementation of Hong Kong-Thailand Mutual Recognition of Funds
SFC News, 17 Jun 2021
The Securities and Futures Commission and the Securities and Exchange Commission of Thailand announce that the implementation of the Mutual Recognition of Funds scheme has come into effect after the SFC and the SEC entered into a Memorandum of Understanding on Mutual Recognition of Funds on 20 January 2021 to allow eligible Hong Kong and Thai public funds to be distributed in each other’s market through a streamlined process.
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[Hong Kong] The HKMA launches the Regtech Adoption Practice Guide series
HKMA News, 17 Jun 2021
The HKMA launched a new Regtech Adoption Practice Guide series to provide banks with detailed practical guidance on the implementation of Regtech solutions. Each Regtech Adoption Practice Guide focuses on a specific technology or application area identified in the HKMA’s White Paper to further Regtech adoption in the Hong Kong banking sector. The inaugural issue provides guidance on “Cloud-based Regtech solutions”.
Full text: click here; Practice Guide: click here
[Hong Kong] Seventh and Final Issue of Regtech Watch
HKMA News, 17 Jun 2021
This issue of Regtech Watch outlines the HKMA’s three-year roadmap to integrate supervisory technology (Suptech) to enhance the effectiveness and forward-looking capability of its processes. Suptech is commonly regarded as a specific form of Regtech.
Full text: click here; Encl.: click here
[Singapore] MAS Announces Further Extension of the US$60 Billion Swap Facility with the US Federal Reserve and the MAS USD Facility through 31 December 2021
MAS News, 17 Jun 2021
The MAS announced the further extension of the US$60 billion swap arrangement with the US Federal Reserve through 31 December 2021. The MAS USD Facility will also be extended to 31 December 2021, offering up to US$60 billion of backstop funding to banks to support USD lending to businesses in Singapore and the region.
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[Hong Kong] SFC to upgrade industry practitioners’ competency standards
SFC News, 18 Jun 2021
The SFC released consultation conclusions on proposals to update its entry requirements for licence applicants and its ongoing competency standards for corporations and individual practitioners. After considering the responses to the consultation, the SFC agreed to recognise post-graduate diplomas and certificates in designated fields and also clarified the management experience required of an RO applicant and the corporate finance experience of those who intend to advise on matters in relation to the Codes on Takeovers. The SFC will also include environmental, social and governance (ESG) as a relevant topic for continuous professional training purposes. The revised Guidelines on Competence, Guidelines on Continuous Professional Training and Fit and Proper Guidelines will be gazetted on 25 June 2021 and become effective on 1 January 2022.
Full text: click here; Consultation conclusions: click here
[Hong Kong] Circular to Licensed Corporations and Associated Entities - Anti-Money Laundering / Counter-Financing of Terrorism: Early Alert on United Nations Sanctions
SFC Circular, 18 Jun 2021
The SFC inform licensed corporations and associated entities that the sanctions committee of the United Nations Security Council which administers the sanctions regime for ISIL (Da’esh) and Al-Qaida added one individual to its sanctions list on 17 June 2021. Licensed corporations and associated entities should update their screening databases with the above changes made by the UNSC sanctions committee for sanctions screening of customers and payments.
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[Hong Kong] Circular to Money Service Operators Anti-Money Laundering / Counter-Terrorist Financing - United Nations Sanctions (ISIL and Al-Qaida) Regulation, United Nations (Anti-Terrorism Measures) Ordinance, United Nations Sanctions (Libya) Regulation 2019, United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2021
C&ED Circular, 18 Jun 2021
Hong Kong Customs and Excise Department issued a circular regarding the updated lists on the above-captioned regulations and ordinance. The C&ED expects all new designations to be screened by Money Service Operators against their client lists as soon as practicable whenever there are updates.
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[Hong Kong] Fintech 2025 - Tech Baseline Assessment
HKMA Circular, 18 Jun 2021
The HKMA issued a circular to request some of the licensed banks to participate in a “Tech Baseline Assessment” which forms part of the HKMA’s “Fintech 2025” strategy. The Tech Baseline Assessment seeks to take stock of banks’ current and planned adoption of fintech in the coming years such that the HKMA can identify those fintech business areas (e.g. Investech, Insurtech, Greentech) or specific technology types (e.g. artificial intelligence, blockchain) which may potentially be underdeveloped and would benefit from the HKMA’s support.
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[Thailand] Thailand regulator bans some types of digital tokens
Asia Asset Management, 18 Jun 2021
Thailand’s securities regulator has prohibited digital asset exchanges from servicing digital tokens with four types of characteristics, effectively banning these tokens to protect investors from the risky assets. The Securities and Exchange Commission Thailand listed the characteristics as meme tokens, fan tokens, non-fungible tokens and exchange tokens.
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[Hong Kong] Regulator investigates CLSA dollar bond sale for collapsed CEFC China Energy
The Standard, 18 Jun 2021
Hong Kong’s securities regulator is investigating allegations that CLSA Ltd misled investors in its role as bond underwriter for a Chinese energy conglomerate that ended up in bankruptcy, according to people familiar with the matter. The allegations stem from a 2016 dollar bond sale CLSA underwrote for CEFC China Energy Co., an acquisitive oil giant that collapsed in 2018. Several buyers of the bonds, including a former CLSA managing director who purchased them for her personal account, have alleged that the brokerage and its parent company misled investors, failed to disclose conflicts of interest and struck a side deal with CEFC Energy that disadvantaged creditors.
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[Hong Kong] Wealth Management Connect: Hong Kong lenders race for tie-up with mainland peers as China abandons rule on partnerships
SCMP, 21 Jun 2021
Lenders in Hong Kong are racing to establish multiparty tie-ups with mainland peers to prepare for the Wealth Management Connect initiative in the Greater Bay Area after China eased a one-to-one partnership to cross-sell products.
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[Hong Kong] Circular to licensed corporations - Updates to the Exemption Scheme
SFC Circular, 21 Jun 2021
In light of the latest local and global pandemic situation, the Hong Kong Special Administrative Region Government has decided that:
This circular highlights key points concerning the antibody tests and other updates to the Exemption Scheme.
In light of the updates to the Exemption Scheme, applications should be made by completing the Application form and submitting it to the SFC at least 10 working days prior to:
(a)
the expected date of departure from Hong Kong for proposed exempted executives
travelling from and returning to Hong Kong; or
(b) the expected date of arrival in Hong Kong for
proposed exempted executives visiting Hong Kong.
Full text: click here
[Mainland China] China urges banks, payment platforms to impede virtual-currency speculation
China Daily, 21 Jun 2021
People's Bank of China has held regulatory talks with some banks and non-bank payment platforms including Alipay (China) Network Technology Co Ltd, urging them to stop providing services for virtual-currency speculation. Banks and non-bank payment platforms must strictly follow regulatory requirements, fulfill their obligations on customer identification and not provide products or services such as account opening, registration, trading, clearing and settlement of virtual-currency-related activities, said the PBOC.
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[Hong Kong] SFC ups vigilance after Archegos
The Standard, 22 Jun 2021
The Securities and Futures Commission will consider additional guidance for prime brokers if it identifies any shortcomings, in light of the Archegos Capital Management scandal. SFC chief executive Ashley Alder said in a forum earlier this month that the watchdog has been working with firms and other regulators on lessons learned from the collapse of the US investment fund. He said out a key aspect of internal risk management is to ensure that appropriate margin is obtained at the outset, and clients' financial positions and margin profiles are monitored throughout the life of a total return swaps, the core derivative used by Archegos.
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[Singapore] Consultation Paper on Enhancing Pre and Post-Transaction Safeguards for Retail Clients
MAS Consultation, 22 Jun 2021
This consultation seeks views on proposals to enhance pre and post-transaction safeguards for retail clients. MAS conducted a mystery shopping exercise in 2018/2019 to assess the standards of financial advisory representatives’ advisory and sales process. Weaknesses were identified in the implementation of safeguards for Selected Clients. These weaknesses include lapses in identifying Selected Clients and making adequate product disclosures to Selected Clients. Arising from the review of the effectiveness of the Balanced Scorecard Framework and findings from the mystery shopping exercise, MAS is proposing to strengthen the requirement to identify Selected Clients and require a Trusted Individual to be present when investment recommendations are made to Selected Clients.
Full text: click here
