News Headlines
[Hong Kong] SFC publishes new guidance on ESG fund disclosures
SFC News, 29 Jun 2021
The SFC issued a circular to provide guidance to management companies of SFC-authorised unit trusts and mutual funds on enhanced disclosures for funds which incorporate environmental, social and governance (ESG) factors as a key investment focus (ESG funds). The circular includes a new requirement for ESG funds to conduct and disclose periodic assessments of how they incorporate ESG factors and also provides additional guidance for ESG funds with a climate-related focus. In view of the rapid development of a diverse range of ESG investment strategies, the SFC is mindful of the need for asset managers to clearly disclose how funds attain their ESG focus in order to help investors understand these products and assess whether they meet their investment needs.
Full text: click here; Circular: click here; Database of SFC-authorised ESG funds: click here
[Hong Kong] Court of Appeal grants SFC $622 million compensation orders against former directors of EganaGoldpfeil (Holdings) Ltd
SFC News, 29 Jun 2021
The SFC has obtained compensation orders under the Securities and Futures Ordinance from the Court of Appeal against three former directors of EganaGoldpfeil (Holdings) Ltd following an appeal against the lower court’s decision. The three former EHL directors, namely, Mr David Wong Wai Kwong, Mr Peter Lee Ka Yue, and Mr Chik Ho Yin, were ordered to pay, jointly and severally, $622 million as compensation to EHL for the company’s loss of funds as a result of their misconduct and their failure to act in the best interest of EHL. Wong, Lee and Chik were previously disqualified by the Court of First Instance from being a director and taking part in the management of any listed or unlisted corporation in Hong Kong, without leave of the Court, for a period of six to nine years.
Full text: click here
[Hong Kong] Circular to intermediaries – Notification to the SFC of suspected ramp and dump scams involving market manipulation in the shares of companies listed on the Stock Exchange of Hong Kong
SFC Circular, 29 Jun 2021
The SFC issued a circular to encourage intermediaries to provide information or documents which may facilitate the SFC’s immediate assessment of the impact of potential market misconduct, in particular where a ramp and dump scam is suspected. It also provides intermediaries with guidance on red flags which may arouse the reasonable suspicion of intermediaries or their staff about suspected ramp and dump scams and warrant an assessment of whether the associated trading activities should be reported to the SFC under paragraph 12.5(f) of the Code of Conduct.
Full text: click here
[Singapore] Notice 630 & Notice 1018 Private Equity and Venture Capital Investments
MAS Notice, 29 Jun 2021
Notices were issued in relation to requirements of private equity and venture capital investments on banks and merchant banks:
Notice 630 Private Equity and Venture Capital Investments
Notice 1018 Private Equity and Venture Capital Investments
[Singapore] FAQs on the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013
MAS Regulation, 29 Jun 2021
These FAQs are to aid implementation of the reporting obligations for requirements set out under the Securities And Futures (Reporting Of Derivatives Contracts) Regulations for OTC Derivatives.
Full text: click here
[Singapore] Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Contracts [SFA 15-G03]
MAS Regulation, 29 Jun 2021
These guidelines explain how MAS expects non-centrally cleared OTC derivatives contracts to be margined. In particular, guidance is provided on the following areas:
Full text: click here
[Hong Kong] SFC publishes Annual Report 2020-21
SFC News, 30 Jun 2021
The SFC published its Annual Report 2020-21 setting out its priorities for maintaining Hong Kong’s status as a leading international financial centre and preserving the overall integrity and stability of the financial system. According to the report, the number of licensees and registrants increased to 47,178, of which the number of licensed corporations rose to 3,159. The SFC also disciplined 18 firms and 13 individuals and imposed fines totalling $2.81 billion for intermediary misconduct.
Full text: click here; Annual report: click here
[Singapore] UK and Singapore mark a new era of Financial Services Cooperation
MAS News, 30 Jun 2021
The UK and Singapore announced the launch of a new Financial Partnership at the sixth UK-Singapore Financial Dialogue. The two countries also announced an MoU to enhance bilateral cyber security cooperation, including the sharing of cyber-related information and supervisory best practices.
Full text: click here
[Singapore] Consultation Paper on Proposed Amendments to Regulations, Notices and Guidelines Arising from the Banking (Amendment) Act 2020 and Other Changes
MAS News, 30 Jun 2021
In addition to the amendments arising from the Banking (Amendment) Act 2020, MAS proposes to extend its composition powers by prescribing (a) the offences under section 47 and section 47 as applied by section 55ZI of the BA, in relation to the privacy of customer information; and (b) the offence under section 49 of the Trust Companies Act in relation to the confidentiality of protected information, as compoundable offences under the BA and TCA respectively.
Full text: click here
[Singapore] MAS to follow up with Binance after global scrutiny
Business Times, 2 Jul 2021
Binance Asia Services has a grace period during which it can operate in the city-state while the Monetary Authority of Singapore reviews its application for a licence to provide digital payment token services. A number of other companies are undergoing a similar assessment and can continue their operations in the meantime. MAS said it is applying "robust standards" in assessing applications, and considers a number of factors such as the applicant's ability to implement strong measures against illicit flows, as well as fitness and propriety of shareholders and key appointment holders.
Full text: click here
Articles/ Publications
Opportunities and risks in a multi-speed recovery
Janus Henderson Investors, Jun 2021
Global Bonds Portfolio Managers Dan Siluk and Jason England explain how an asynchronous global recovery should lead to dislocations and opportunities in fixed income markets.
Full text: click here
[Hong Kong] Slide Shows with Narration on Regulatory Regime of Money Service Operators
C&ED, 30 Jun 2021
With a view to keeping money service operators abreast of the latest landscape of anti-money laundering and counter-financing of terrorism and deepening their understanding of the statutory and regulatory requirements, the Customs & Excise Department has compiled two presentation slide shows focusing on suspicious transaction reporting and competence assessment for money service operators.
Full text: click here; Slides: click here & here
