SFC statement on sanctions imposed by the US government
SFC, 8 Aug 2020
On 7 August 2020, the US government announced the imposition
of sanctions against individuals in Hong Kong and Mainland China. The SFC is
monitoring closely the impact that the sanctions may have on the operation of
intermediaries, the interests of investors and financial stability and
orderliness of the markets in Hong Kong.
Full Text: Click Here
Financial Sanctions
HKMA, 8 Aug 2020
In the light of the unprecedented circumstances caused by
“sanctions” imposed by foreign governments on certain persons in Mainland China
and the Hong Kong Special Administrative Region recently, the circular is to explain the expectations of the Hong Kong
Monetary Authority (HKMA) on stored value facility (SVF) licensees / authorized
institutions (AIs) to ensure that a distinction is made between targeted
financial sanctions applicable under Hong Kong law and unilateral sanctions
imposed by foreign governments. Ais/SVF should carefully assess all risks
involved and endeavour to treat customers fairly.
Circular for SVF: Click Here;
Circular for AI: Click Here
Reminder of Investor Protection Measures
HKMA, 7 Aug 2020
AIs are reminded to remain vigilant and continue to treat
customers fairly and act in the best interest of their customers in the sale of
investment products, in line with the Code of Banking Practice and the Treat
Customers Fairly Charter. AIs should exercise extra care when handling
leveraged transactions where the customer could have potential losses exceeding
the invested amount.
Full Text: Click Here
Response of the Insurance Authority to imposition of
sanctions by the United States Government on individuals in Hong Kong
Hong Kong Insurance Authority, 8 Aug 2020
An IA spokesperson said, “In assessing potential impact
arising from the sanctions, market participants should take into account the
full spectrum of legal, business and commercial risks to which they are
exposed. This may involve complex operational issues, varying with the
structure, size and business portfolio of an insurer or insurance intermediary
as well as its overseas affiliates. Above all, the IA will expect customers to
be treated fairly and transparently in the formulation of any responses to the
sanctions.”
Full Text: Click Here
MAS Calls on Finance Companies to Moderate FY2020
Dividends
MAS, 7 Aug 2020
The Monetary Authority of Singapore (“MAS”) has urged
finance companies incorporated in Singapore to cap their total dividends per
share (“DPS”) for FY2020 at 60% of FY2019’s level. The finance companies are
also encouraged to offer shareholders the option of receiving the dividends to
be paid for FY2020 in scrip in lieu of cash.
Full Text: Click Here
