News Headlines
[Hong Kong] Revised SPM Module CG-5 on Remuneration Systems
HKMA Circular, 29 Jul 2021
The HKMA issued a revised version of its Supervisory Policy Manual (SPM) module CG-5 “Guideline on a Sound Remuneration System” following consultation with the two industry Associations. The changes incorporated in the revised SPM module are mainly to:
– update the existing guidelines following the most recent guidance issued by the Financial Stability Board on sound remuneration practices, and in particular on the use of remuneration tools to address potential misconduct risks;
– strengthen the Board oversight on the formulation and implementation of remuneration systems and related control processes;
– provide guidance in relation to the adoption of group remuneration policies and approval of remuneration packages of senior management and Key Personnel for foreign bank branches; and
– update the existing guidelines to align with the remuneration disclosure requirements in the Banking (Disclosure) Rules.
Full text: click here; SPM: click here
[Mainland China] CBIRC keeps risk control a priority
China Daily, 30 Jul 2021
The China Banking and Insurance Regulatory Commission stressed it will relentlessly prevent and control financial risks, accelerate the risk disposal of high-risk financial institutions and step up punishment of financial institution shareholders who violate laws and regulations. At its mid-year work conference earlier this week, CBIRC said China will actively deal with the pressures of a rebound in nonperforming assets, strictly prevent a resurgence of high-risk shadow banking activities, prevent illegal flows of funds from banks and insurers into the housing market and regulate financial business conducted by internet platforms according to the law.
Full text: click here
[Hong Kong] SFC reprimands and fines UBS AG and UBS Securities Asia Limited $11.55 million for regulatory breaches
SFC News, 3 Aug 2021
The SFC has reprimanded and fined UBS AG and UBS Securities Asia Limited (UBSSAL) (collectively, UBS) $9.8 million and $1.75 million respectively over various regulatory breaches. The SFC’s investigation found that between May 2004 and May 2018, UBS failed to make proper disclosure of its financial interests in some Hong Kong listed companies covered in its research reports. The failure was caused by multiple data feed logic errors in a legacy data source used by UBS for tracking its shareholding positions. The SFC also found that UBS AS failed to obtain valid standing authorities from 91 clients who were not qualified as professional investors and issue contract notes to them between 2012 and 2019 in respect of 913 securities pooled lending transactions entered into with these clients.
Full text: click here
[Singapore] MAS prepared to license ‘several’ DPT service provider
Business Times, 4 Aug 2021
Responding to queries after Australian crypto exchange Independent Reserve said on Tuesday that it has obtained the Singapore central bank’s “in principle approval” for the much-coveted payment services licence, an MAS spokesperson said: “MAS has recently notified several applicants that it is prepared to grant them payment services licences under the Payment Services Act (PSA)” . However, MAS did not disclose how many such applicants it had notified and who they are.
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Articles/ Publications
Allianz unit gets China nod as first foreign insurance asset manager
Asia Asset Management News, 3 Aug 2021
Germany’s Allianz Insurance Asset Management Co. has become China’s first asset management firm that is 100% owned by a foreign insurer. The company, a unit of Allianz Group, is based in Beijing and has a registered capital of 100 million RMB. It’s owned by Allianz (China), China’s first wholly foreign-owned insurance company.
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Philippines’ securities regulator launches fintech innovation office
Asia Asset Management News, 4 Aug 2021
The Philippines’ securities regulator has launched a financial technology innovation officer to promote financial inclusion, grow the industry and focus on regulation on fintech use. The new PhiliFintech Innovation Office is under the corporate governance and finance department of the Securities and Exchange Commission.
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