[Hong Kong] Reform of interest rate benchmarks
HKMA Circulars, 19 Aug 2021
The HKMA informed the authorized institutions of a few recent developments relating to the reform of interest rate benchmarks. Consistent with the guidance provided by banking regulators around the world, the HKMA has required AIs to cease to enter into new LIBOR-linked contracts after 2021. To ensure a smooth transition away from LIBOR, the HKMA will step up its surveillance of AIs’ preparation from now on until the end of 2021. In this connection, the frequency of the Survey on Reform of Interest Rate Benchmarks will be increased from quarterly to monthly during the fourth quarter starting from the position of end-September 2021.
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[Mainland China] Chinese regulators summon Evergrande bosses, warn on debt risks
The Standard, 19 Aug 2021
China's central bank said it summoned executives of the country's most indebted property developer, China Evergrande Group, and issued a rare warning that the company ought to reduce its debt risks and prioritize stability. Evergrande must "actively diffuse debt risk and maintain real estate and financial markets stability," said the People's Bank of China and China's banking regulator, the China Banking and Insurance Regulatory Commission, in a joint statement.
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[Hong Kong] SFC concludes consultation on climate-related risks in funds
SFC News, 20 Aug 2021
The SFC issued amendments to the Fund Manager Code of Conduct and a circular setting out expected standards for fund managers managing collective investment schemes to take climate-related risks into consideration in their investment and risk management processes and make appropriate disclosures. The new requirements will be implemented in phases with the first phase to begin on 20 August 2022. The SFC also released consultation conclusions on proposed climate-related risk management and disclosure requirements for fund managers. In reaching its conclusions, the SFC received wide support from the industry for financial regulators to play a role in setting baseline requirements for managing climate-related risks and combating greenwashing.
Full text: click here; Circular: click here
[Hong Kong] Approval of the launch of an A shares index futures contract
SFC News 20 Aug 2021
The SFC has approved the launch of an A shares index futures contract by the HKEX, which aims to provide a significant new risk management tool for global investors who participate in China’s A shares market. “The ability to trade A shares futures in Hong Kong, and to hedge pricing risks effectively, is expected to facilitate the further growth of long term capital flows into the Mainland financial markets,” the SFC’s Chief Executive Officer, Mr Ashley Alder said.
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[Singapore] Ex-UOB employee charged after she allegedly disclosed customers' info to scammers
Business Times, 20 Aug 2021
Cao Wenqing, a former employee of UOB, who is said to have fallen for a China police impersonation scam, faces 29 charges under the Computer Misuse Act and the Banking Act. In an earlier statement, police said Cao was working at UOB when she allegedly accessed and conducted queries on the bank's electronic customer database without authorisation. Cao is also accused of disclosing over 1,100 customers' information to somebody claiming to be from the "Shanghai Police".
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[Mainland China] China strengthens supervision of accounting firms in fight against forgery
The Standard, 23 Aug 2021
China said it will tighten scrutiny over accounting firms in a fight against financial forgery, vowing "zero tolerance" toward misconduct. The guidelines, published by China's State Council, come as Beijing launches a flurry of regulatory crackdowns against sectors ranging from Internet to tutoring. The guidelines said China will publish detailed rules on the supervision of accounting firms, and will increase the frequency of inspections, while stepping up punishment. China will also crack down on misconduct including unlicensed accounting, online hawking of auditing reports, and leakage of confidential information.
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[Singapore] The United States Department of the Treasury and the Monetary Authority of Singapore Finalise a Memorandum of Understanding on Cybersecurity Cooperation
MAS News, 23 Aug 2021
The United States Department of the Treasury (“Treasury”) and the Monetary Authority of Singapore (“MAS”) announced the finalisation of a bilateral Memorandum of Understanding on Cybersecurity Cooperation. The MoU enhances cooperation between Treasury and MAS in the following areas:
· Information sharing relating to the financial sector including cybersecurity regulations and guidance, cybersecurity incidents, and cybersecurity threat intelligence;
· Staff training and study visits to promote cooperation in the area of cybersecurity; and
· Competency-building activities such as the conduct of cross-border cybersecurity exercises.
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