Daily News Headlines

  • News Headlines – 27-31 Aug 2021

    News Headlines

    [Hong Kong] Revisions to Money Service Operators Licensing Guide

    C&ED Circulars, 26 Aug 2021

    The Customs and Excise Department published a revised Licensing Guide on 26 August 2021. The revised licensing guide comes into immediate effect and applies to an applicant for grant or renewal of a money service operator (“MSO”) licence or a licensee. It explains new or renewal licence application procedures in details and sets out notes on licensing requirements imposed on all MSO licence applicants and licensees. A new section regarding ‘list of documents required in support of the application for grant or renewal of an MSO licence’ was added.

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    [Hong Kong] SFC and Police conduct joint operation against listed company and senior executives in $450 million corporate fraud case

    SFC News, 27 Aug 2021

    The Securities and Futures Commission and Commercial Crime Bureau of the Police conducted a joint operation against a Hong Kong-listed company and its former senior executives suspected of a series of corporate fraud related offences involving a total of $450 million. During the operation, the Police arrested two persons for offences of conspiracy to defraud, theft and money-laundering. They are alleged to have conspired with other persons to conduct fictitious transactions and/or misappropriate funds from the listed company.

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    [Hong Kong] SFC alerts the public of unauthorised investment schemes

    SFC News, 30 Aug 2021

    The SFC launched a new initiative to warn the public about arrangements which are suspected to be collective investment schemes (CIS). A CIS may not be offered to the public in Hong Kong without the SFC’s authorisation. Investment arrangements which have come to the SFC’s attention and display certain characteristics of a CIS will be included on a new Suspected Unauthorised CIS Alert List. These arrangements may involve overseas real estate or non-conventional assets and investments such as digital tokens and initial coin offerings.

    Full text: click here; Alert list: click here

    [Hong Kong] SFC suspends Cheung Man Chit for two years

    SFC Enforcement news, 30 Aug 2021

    The SFC has suspended Mr Cheung Man Chit, a former licensed representative of Emperor Securities Limited and Emperor Futures Limited (collectively, Emperor), for two years from 28 August 2021 to 27 August 2023. The SFC found that Cheung submitted false client documents and information to Emperor, and stated in a client account opening document that he witnessed the client’s signature when in fact he had not done as claimed, he also transferred around $3.2 million client money through his personal and related bank accounts and inputted incorrect information in Emperor’s payment or deposit forms to facilitate the transfers. The SFC therefore found that Cheung failed to inform the SFC and Emperor of his directorship and proprietorship of two companies that he owned.

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    [Mainland China] Securities firms urged to focus on real economy

    China Daily, 30 Aug 2021

    China's securities industry should concentrate on better serving the real economy and further enhance compliance awareness and implementation so as to ensure the high-quality development of the capital market, Li Chao, vice-chairman of the China Securities Regulatory Commission, said at the 30-year celebration forum for China's securities industry. Companies should improve their weak links and eliminate loopholes in their governance as this is the only way to further consolidate the foundation of the securities industry, Li said. In addition, participants in the securities industry should accelerate their transformation by making themselves more professional and focusing on active management. Investment banks can make progress by improving their service quality on sponsoring, pricing and underwriting.

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    [Mainland China] First mutual fund by wholly foreign owned company launched

    China Daily, 30 Aug 2021

    BlackRock Fund Management Co Ltd, BlackRock's wholly owned mutual fund business in China, kicked off the offering of BlackRock China New Horizon Mixed Securities Investment Fund on Monday, aiming to raise money totaling between 200 million yuan and 8 billion yuan. This has marked the first mutual fund offering by a wholly foreign owned company in China, after BlackRock was approved to start a wholly owned onshore mutual fund business in June.

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    [Mainland China] China to continue crackdown on cryptocurrency speculation

    China Daily, 30 Aug 2021

    China will continually crack down on illegal fundraising and speculative trading related to cryptocurrencies, according to an official from the People's Bank of China. The PBOC will establish a normalized working mechanism, maintain tight regulations and continue to crack down on relevant trade and speculative activities, Yin Youping, deputy head of the PBOC Financial Consumer Protection Bureau, said at a media briefing.

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    [Mainland China] Regulator urges funds to raise game

    China Daily, 31 Aug 2021

    The quality of investment management and services should be further improved in the fund industry by optimizing investment consulting, sales, trust, valuation, and assessment mechanisms, said Yi Huiman, chairman of the China Securities Regulatory Commission, at a conference organized by the Asset Management Association of China. To ensure stable development, mutual fund companies should further enhance their compliance awareness while private equity firms should master the entire process from seeking financing and investment to exit, said Yi.

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    [Mainland China] China to tighten scrutiny on 60t yuan fund industry

    Business Times, 31 Aug 2021

    China's top securities regulator pledged to crack down on mismanaged private funds and weed out fake ones, as the government becomes more assertive in dealing with an industry worth 60 trillion yuan. Fund managers should align their interests more closely with investors, and refrain from hyping their products, Yi Huiman, chairman of the China Securities Regulatory Commission said. Despite a recent clean-up of China's private fund industry, there are still many small and weak players hampering the high-quality growth of the sector, Mr Yi said, adding that the regulators will publish new rules in due course.

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    Articles/ Publications

    Thailand securities regulator proposes new rules for digital asset firms

    Asia Asset Management News, 27 Aug 2021

    Thailand's Securities and Exchange Commission (SEC) is proposing new rules for digital asset firms in order to bolster investor protection, including requiring them to deposit clients’ fiat money with banks. The firms will also have to develop an encrypted automated system that allows customers to withdraw or transfer the digital assets on command, and to ensure clients’ accounts cannot be accessed by others. The accounts must also comply with the principles of decentralised approval authority, multi-sign approval authority, and check and balance.

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    Singapore bourse proposes compulsory climate disclosures

    Asia Asset Management News, 30 Aug 2021

    The Singapore Exchange (SGX) is proposing mandatory climate disclosures to be phased in from next year to bolster companies’ resilience to climate risk. It is also recommending that companies have a board diversity policy in place and disclose related targets, plans and timelines in annual reports, in order to enhance board diversity. The exchange is seeking public feedback on the proposals, which were made by its regulatory unit, SGX RegCo. The regulator wants the climate disclosures to be implemented in phases from the financial years starting January 1, 2022.

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