[Hong Kong] SFC reprimands and fines Deutsche Securities Asia Limited $2.45 million over incorrect prime brokerage client statements
SFC News, 24 Jun 2021
The SFC has reprimanded Deutsche Securities Asia Limited (DSAL) and fined it $2.45 million for issuing incorrect statements to its prime brokerage clients and delaying reporting its failures to the SFC. The SFC found that between 2006 and October 2018, due to a design defect of its front office system, DSAL issued incorrect periodic statements to its prime brokerage clients when they were holding positions regarding their entitlements to bonus shares of listed companies that had not yet become tradable by the clients. It appears that one of DSAL’s prime brokerage clients relied on the incorrect statements and oversold bonus shares issued by three Hong Kong-listed companies in July 2018. Although DSAL discovered within the same month that incorrect statements had been issued to this client and became aware in the following month that the errors were caused by a system design defect, it did not report the failures to the SFC until February 2019 when its internal investigation was complete.
Full text: click here
[Hong Kong] Annual update to the list of Financial Services Providers under the OTC derivatives regulatory regime
SFC News, 24 Jun 2021
The HKMA and the SFC issued the joint consultation conclusions on the annual update to the list of Financial Services Providers under the over-the-counter derivatives clearing regime.
Ful text: click here; Consultation conclusions: click here
[Singapore] MAS, IBF extend course fee subsidies, training grants for financial sector
Business Times, 25 Jun 2021
THE Monetary Authority of Singapore and the Institute of Banking and Finance will be extending enhanced training support measures. This includes course fee subsidies under certain schemes and training allowance grants. They will progressively reduce and cease the extended measures on July 1, 2022. Until Dec 31, 2021, the Financial Sector Development Fund will support course fee subsidies of 90 per cent for courses under the IBF-Standards Training Scheme and Financial Training Scheme, subject to funding caps of S$7,000 and S$2,000 respectively. When the year ends, MAS and IBF will extend the course fee subsidies under the IBF-STS and FTS to June 30, 2022, at a rate of 80 per cent. After this, course fee subsidies will return to a "more sustainable rate" of 70 per cent and 50 per cent respectively.
Full text: click here
[Global] Global dirty money watchdog adds Malta to 'grey list', keeps Pakistan on it
Business Times, 28 Jun 2021
The Financial Action Task Force (FATF) said that it had added European Union member Malta to its "grey list" of countries under increased monitoring, and kept Pakistan on the list despite progress on tackling terrorism financing. FATF also said that Haiti, the Philippines and South Sudan were added to its grey list, and that Ghana had been removed after the country had made progress. FATF made its move after years of international criticism of Maltese policymaking, including the sale of national passports, as well as a lack of legal action against government officials who were mentioned in the Panama Papers as having set up secret offshore companies.
Full text: click here
[Singapore] Singapore Exchange beefs up enforcement powers
Asia Asset Management News, 28 Jun 2021
The Singapore bourse’s regulatory arm is expanding its arsenal of enforcement powers to include public reprimands and forcing directors to resign, and will also require companies to have a whistleblower policy in place by next year. Effective August, SGX RegCo will have the power to issue public reprimands and require an issuer to comply with specific conditions, and these are non-appealable. It will also have the power to prohibit issuers from accessing market facilities for a specific period, bar them from appointing or reappointing a director or an executive officer for up to three years, and force a director or an executive officer to resign. These are appealable before the listing appeals committee.
Full text: click here
[Singapore] MAS says impact on fund-management industry from investments into Envy entity is 'limited'
Business Times, 28 Jun 2021
The Monetary Authority of Singapore has assessed investments by three licensed fund managers, Envysion Wealth Management, Vickers Venture Partners and Sun Hope Capital, into Envy Global Trading which linked to a S$1 billion fraud scheme, and determined the impact on the fund management industry to be "limited".
Full text: click here
[Singapore] Guidelines on Fit and Proper Criteria [FSG-G01]
MAS Regulation, 28 Jun 2021
The Guidelines on Fit and Proper Criteria have been amended and will take effect on 1 July 2021. These guidelines set out the fit and proper criteria that apply to all relevant persons carrying out any activity regulated by MAS. The relevant person is expected to be competent, honest, to have integrity and to be of sound financial standing.
Full text: click here
[Singapore] Guidelines on Risk Management Practices – Board and Senior Management
MAS Regulation, 28 Jun 2021
The Guidelines on Risk Management Practices – Board and Senior Management have been amended and will take effect on 1 July 2021. These guidelines highlight the corporate governance roles of the financial institutions’ Board of Directors and senior management in ensuring a sound risk management culture and environment.
Full text: click here
[Singapore] Notice under Securities and Futures Act
MAS Notice, 28 Jun 2021
Notices were revised under the Securities and Futures Act on various topics:
[Singapore] Notice under Payment Services Act 2019
MAS Notice, 28 Jun 2021
Notices were revised under the Payment Services Act 2019 on various topics:
[Singapore] Notice in relation to Prevention of Money Laundering and Countering the Financing of Terrorism
MAS Notice, 28 Jun 2021
Notices were revised in relation to prevention of money laundering and countering the financing of terrorism on various subjects:
· Notice 626 Prevention of Money Laundering and Countering the Financing of Terrorism – Banks
[Singapore] FAQs on Financial Advisers Act, Financial Advisers Regulations, Notices and Guidelines
MAS Regulation, 28 Jun 2021
These FAQs provides guidance to financial advisers about the Financial Advisers Act regime and covers topics including licensing requirements, exemptions, representative notification framework, business conduct and reporting requirements.
Full text: click here
[Singapore] Guidelines on Criteria for the Grant of a Financial Adviser's Licence [FAA-G01]
MAS Regulation, 28 Jun 2021
These guidelines set out the licensing admission criteria for persons applying for a financial adviser’s licence under the Financial Advisers Act. the Guidelines revised the paragraph on Technology Risk Management, stating that the MAS may require an applicant to perform a penetration test of its internet-accessible web or mobile applications prior to deployment.
Full text: click here
[Singapore] Guidelines on the Application of Banking Regulations to Islamic Banking
MAS Regulation, 28 Jun 2021
These guidelines apply to all financial institutions offering Islamic banking in Singapore and cover MAS’ general approach to the regulation of Islamic banking, admission framework for Islamic banks and regulatory treatment for Islamic banking products.
Full text: click here
[Singapore] Notice 1001 Definition of Capital Funds and Net Head Office Funds
MAS Regulation, 28 Jun 2021
This notice applies to all merchant banks in which sets out definitions for the terms "capital funds" and "net head office funds".
For the purposes of sub-paragraph (c) of the definition of “capital funds” in section 2(1) of the Banking Act, all of the following are to be excluded as “capital funds”:
(i) revaluation reserves;
(ii) unrealised fair value gains or losses on equity securities held at fair value through other comprehensive income;
(iii) unrealised fair value gains or losses on debt securities and loans held at fair value through other comprehensive income;
(iv) cumulative fair value gains or losses on cashflow hedges of financial instruments that are measured at amortised cost.
For the purposes of sub-paragraph (b) of the definition of “head office capital funds” in section 55T(11) of the Banking Act, the term “published reserves” exclude any revaluation reserves.
Full text: click here
[Singapore] Guidelines on Definition of a “Deposit”
MAS Regulation, 28 Jun 2021
These guidelines apply to all banks and merchant banks in Singapore. They set out the factors that MAS would consider in determining whether a financial product satisfies the definition of a “deposit” under the Banking Act.
Full text: click here
