(London, 13 October 2021) International financial firms should brace for major changes in the Asian financial industry, according to a seminar hosted by ComplianceAsia, the longest established compliance consulting firm in the Asia Pacific region.
The half-day event in London provided the latest regulatory updates in key APAC jurisdictions including Hong Kong, Singapore, Mainland China, Japan and Australia, looking at Environmental, Social and Governance investing in Asia, the impact of sanctions and anti-money laundering (AML) changes in the Asian financial industry and opportunities in the asset management space.
During the seminar, Philippa Allen, CEO and Founder, ComplianceAsia, Alex Duperouzel, Managing Director, ComplianceAsia and Jasper Yip, Partner in the financial services practice of Oliver Wyman Hong Kong provided the latest regulatory changes around Asia Pacific and recent enforcement actions in Asia Pacific. Keynote speakers included Mr Minoru Nakamura, Minister for Financial Affairs, Embassy of Japan in the UK.
- In Hong Kong, the Securities & Futures Commission of Hong Kong (SFC) has released amendments to the Fund Manager Code of Conduct (FMCC) and accompanying FAQs on the requirements fund managers must meet to consider climate-related risks during the investment and risk management processes along with new requirements governing the use of cloud storage and electronic data;
- In Mainland China, the People’s Bank of China issued a “Notice on Further Preventing a Crackdown on Virtual Money Trading and Speculation” announcing that all virtual currency-related activities are deemed illegal financial activities. October 2021 saw the launch of the Greater Bay Wealth Management Connect Scheme which represents a way for international firms to access a current GDP of USD2.2 trillion and is projected to grow to USD4.6 trillion by 2030;
- In Australia, the Australian Treasury announced a major reversal to its plans to require foreign financial services providers to hold an Australian Financial Services License pending further consultation; and
- New regulatory changes in Singapore introduced by the Monetary Authority of Singapore (MAS) include the MAS Technology Risk Management (TRM) Guidelines, Individual Accountability and Conduct (IAC) Guidelines and Environmental Risk Management Guideline for banks, insurers and asset managers alongside enhancements to the VCC fund regime to strengthen Singapore’s asset management ecosystem.
Philippa Allen, of ComplianceAsia said: “Over the last two years, financial institutions in Asia are having to operate in an increasingly complex and rapidly changing regulatory environment and need to be able to respond quickly to emerging business opportunities. As a compliance consulting firm, we play an important role in helping businesses identify applicable regulations and ensure they have the appropriate internal controls in place to ensure their operations are compliant. From our four key locations in Asia Pacific, we are able to support the Asian offices of financial firms in the UK, EU and North America and reduce the regulatory burden of managing local compliance remotely from different time zones. Our seminar today in London is designed to provide practical guidance and updates to compliance officers with responsibility for offices in Asia Pacific.”
Alex Duperouzel added: “Financial services become more complex each year from a regulatory perspective and the Asian region is part of that trend. As major financial firms continue to see the opportunity that such a vast market presents, they need to temper that enthusiasm with the knowledge that a solid investment in understanding the regulatory environment is a must. We are pleased that we can be a part of that regulatory solution.”
ComplianceAsia is an independent compliance consulting firm in Asia Pacific, established in 2003 with key offices in Hong Kong, Singapore, Shanghai, Tokyo and London. We have an unmatched track record of completing complex compliance consulting projects for financial firms in the APAC region.
With over 70 staff, including compliance experts with experience in dealing with the SFC, HKMA, MAS, CSRC, AMAC, JFSA and Asian Exchanges, we provide independent, unbiased advice on Asian financial industry legislation and regulations. Our international client base consists of asset managers, hedge funds, private equity funds, family offices, broker-dealers, insurers, wealth management and investment banks.