[Hong Kong] SFC issues restriction notice to freeze broker’s client accounts linked to suspected market manipulation

SFC News, 3 Sep 2020

The Securities and Futures Commission (SFC) has issued a restriction notice to Shenwan Hongyuan Securities (H.K.) Limited, prohibiting it from dealing with or processing certain assets held in four trading accounts, which are related to suspected market manipulation in the shares of a company listed on the Stock Exchange of Hong Kong Limited. The restriction notice prohibits Shenwan Hongyuan, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, certain securities in the four trading accounts.

Full text: click here

[Hong Kong] Former licensee convicted of providing false or misleading information to SFC

SFC Enforcement News, 3 Sep 2020

The Eastern Magistrates’ Court convicted Mr Lau Tin Yau in a prosecution brought by the SFC for offences under the Securities and Futures Ordinance that arose from his licence applications to the SFC. The SFC told the Court that Lau failed to disclose in two licence applications to the SFC in August 2017 that he was a subject of investigations by other regulatory or criminal investigation bodies. Lau also failed to report to the SFC within seven business days of the occurrence of events related to criminal and disciplinary proceedings against him.

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[Hong Kong] SFC commences proceedings against Tianhe Chemicals Group Limited and its executive director for defective prospectus and to seek compensation orders for investors

SFC Enforcement News, 7 Sep 2020

SFC has commenced proceedings in the Market Misconduct Tribunal against Tianhe Chemicals Group Limited (Tianhe) and its executive director, Mr Wei Xuan, for allegedly issuing Tianhe’s listing prospectus in which the company’s revenue was overstated by over RMB6.7 billion. The SFC alleges that Tianhe’s prospectus contained materially false or misleading information regarding its sales revenue and profits for its track record period for the financial years from 2011 to 2013, which was likely to induce subscriptions for or purchases of the shares of Tianhe and/or to increase the share price of Tianhe in Hong Kong.

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[Hong Kong] Insurance Authority extends the validity of temporary facilitative measures to 31 December 2020

Insurance Authority, 4 Sep 2020

The Insurance Authority (IA) issued a circular “Extension of Phase 2 of the temporary facilitative measures to tackle the outbreak of COVID-19” to further extend phase 2 of the Temporary Facilitative Measures to 31 December 2020. Authorized institutions may continue to adopt the Temporary Facilitative Measures outlined in the circular “Phase 2 of the temporary facilitative measures to tackle the outbreak of COVID-19” issued by the IA on 27 March 2020 for their non-face-to-face distribution of the in-scope products until 31 December 2020.

Full text: click here; Circular: click here

[Hong Kong] Insurance Authority consults on the proposed Insurance (Special Purpose Business) Rules

Insurance Authority, 4 Sep 2020

The IA launched a six-week public consultation on the draft Insurance (Special Purpose Business) Rules (the “SPB Rules”) to tie in with the expected implementation of the new regulatory regime for the issuance of insurance-linked securities (“ILS”) in Hong Kong in 2021. The proposed SPB Rules are intended to protect the interests of ordinary retail investors by providing for restrictions on the sale of ILS, including the scope of eligible investors, a minimum investment size and offences against the contravention of sales restrictions.

Full text: click here; Consultation paper: click here

[Hong Kong] HK financial sector bolstering US sanctions compliance

The Standard, 3 Sep 2020

Financial firms in Hong Kong are scrambling to fortify their compliance operations following U.S. sanctions and China’s new national security law, even as the sector pushes to cut costs amid the coronavirus pandemic.

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[Hong Kong] Virtual insurance distribution platform opens

The Standard, 4 Sep 2020

The Hong Kong Federation of Insurers has launched a virtual solution to enable distribution of long-term insurance products via video conferencing in the midst of COVID-19.

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[Singapore] MAS Enhances Access to Liquidity Facilities to Strengthen Banking Sector Resilience

MAS Media Releases, 3 Sep 2020

The Monetary Authority of Singapore (MAS) announced measures to enhance the banking system’s access to Singapore dollar (SGD) and US dollar (USD) funding. The new measures will strengthen banking sector resilience, promote more stable SGD and USD funding conditions, and support credit intermediation amid continued economic headwinds from the COVID-19 pandemic.

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[Singapore] Response to Consultation on Execution of Customers' Orders

MAS Consultation, 3 Sep 2020

The MAS issued a response to feedback received on Consultation on Execution of Customers’ Orders, which proposes to formalise MAS’ expectations for Capital Markets Services licensees, banks, merchant banks and finance companies to have policies and procedures to place and execute customers’ orders on the best available terms (also known as “Best Execution”) to support fair outcomes for customers. MAS has carefully considered the feedback received during the consultation period, and has incorporated them into the new Notice SFA 04-N16 on Execution of Customers’ Orders (the “Notice”) and the Guidelines to the Notice (the “Guidelines”).

Full text: click here; the Notice: click here; the Guidelines: click here

[Singapore] Effective AML/CFT Controls in Private Banking

MAS Guidance, 4 Sep 2020

The MAS conducted a series of thematic inspections of private banks targeted at assessing the effectiveness of their AML/CFT risk management and controls. This guidance paper sets out MAS’ supervisory expectations of effective AML/CFT controls in the private banking industry, and includes illustrative examples taken from MAS’ inspections.

Full text: click here

[Singapore] Consultation Paper on Draft Notices on the Competency Requirements for Representatives Conducting Regulated Activities under the Financial Advisers Act and Securities and Futures Act

MAS Consultation, 4 Sep 2020

The MAS issued the Draft Notices on the Competency Requirements for Representatives Conducting Regulated Activities under the Financial Advisers Act and Securities and Futures Act to consult on the legal amendments to the ‘FAA-N13 Notice’ and ‘SFA 04-N09 Notice’ to implement changes to the Capital Markets and Financial Advisory Services Examinations.

Full text: click here; Annex A: click here; Annex B: click here

[China] Regulator fines four banks for financial misconduct

The Standard, 4 Sep 2020

The China Banking and Insurance Regulatory Commission has fined four middle-sized banks as well as an asset management company for financial misconduct, involving a total of 320 million yuan (HK$362.77 million), and issued warnings to their executives.

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[China] China to expand stock connect programme as it looks to speed up opening of its financial markets

SCMP, 6 Sep 2020

The China Securities Regulatory Commission (CSRC) will expand the scope of investments allowed in the stock connect programme link with Hong Kong, and allow foreign investors to trade more commodities futures products, Fang Xinghai, vice-chairman of the CSRC told a financial forum on Sunday in Beijing as part of the China International Fair for Trade in Services.

Full text: click here