[Hong
Kong] SFC reprimands and fines Goldman Sachs (Asia) L.L.C. US$350 million for
serious regulatory failures over 1Malaysia Development Berhad’s bond offerings
SFC
Enforcement News,
22 Oct 2020
The Securities and Futures Commission (SFC) has
reprimanded and fined Goldman Sachs (Asia) L.L.C. (Goldman Sachs Asia) US$350
million (HK$2.71 billion) for serious lapses and deficiencies in its management
supervisory, risk, compliance and anti-money laundering controls that
contributed to the misappropriation of US$2.6 billion from US$6.5 billion that
1Malaysia Development Berhad (1MDB) raised in three bond offerings in 2012 and
2013. The SFC considers that Goldman Sachs Asia lacked adequate controls in
place to monitor staff and detect misconduct in its day-to-day operation, and
allowed the 1MDB bond offerings to proceed when numerous red flags surrounding
the offerings had not been properly scrutinised and satisfactory answers to
such red flags had not been obtained.
Full text: click here
[China& Hong Kong] Wealth Connect capped
at 150b yuan each way
The
Standard, 22 Oct 2020
China's
plan to allow investments for private wealth across the border between Hong
Kong and its increasingly affluent southern region will be capped at 150
billion yuan (HK$174.01 billion) in each direction. The Wealth Management
Connect program will also have an individual quota of 1 million yuan, according
to the Hong Kong Monetary Authority.
Full
text: click here
[Singapore]
Former fund manager charged for acts likely to defraud investors
MAS Enforcement News, 22 Oct 2020
Mr Sun Weiyeh, a former fund manager, was charged
under the Securities and Futures Act (SFA) for acts that were likely to defraud
investors. He is accused of selling two bonds at lower than market prices from
the fund to another One Asia Investment Partners Pte. Ltd. fund when he knew
that there were offers at higher prices for the bonds.
Full text: click here
[Singapore] MAS Bans
Kevin Michael Swampillai for Life
MAS Enforcement News, 23
Oct 2020
The Monetary Authority of Singapore (MAS)
has issued lifetime Prohibition Orders (POs) against Mr Kevin Michael
Swampillai, a former representative and Head of the Wealth Management Services
Department of BSI Bank Limited, Singapore Branch. From 2012 to 2013, Mr
Swampillai and his subordinate had assisted 1Malaysia Development Berhad (1MDB)
to restructure several of its joint venture interests. Mr Swampillai received
about US$5 million in secret profits at the expense of and without the
knowledge of BSIS. He also deliberately made misrepresentations to 1MDB’s
auditors, KPMG Malaysia, in an attempt to improperly influence the outcome of
an audit carried out by them on 1MDB’s fiduciary fund investments.
Full text: click here
[Singapore] AGC, CAD and
MAS take action against Goldman Sachs (Singapore) Pte. on 1MDB bond offerings
MAS Enforcement News, 23
Oct 2020
Attorney-General’s Chambers (AGC),
Commercial Affairs Department (CAD) and Monetary Authority of Singapore (MAS)
issued a joint statement regarding Goldman Sachs Singapore Pte (GSSP) on 1MDB
bond offerings. The Singapore authorities required GSSP to pay US$122 million to
the Singapore Government over its involvement in the 1MDB bond offerings. In
addition, the MAS has issued GSSP a direction under Section 101 of the
Securities and Futures Act, Chapter 289 to appoint an independent external
party to conduct a review of its remedial measures.
Full text: click here
[Singapore] Consultation Paper on Capital
Requirements for RMOs
MAS Consultation, 23 Oct 2020
The Monetary Authority of Singapore (MAS) seeks views on the
proposed capital requirements to be imposed on locally incorporated Recognised
Market Operators.
Full text: click here
[China] Outbound investment limits to be
eased further
China Daily, 23 Oct 2020
A senior official from the State Administration of Foreign Exchange said
on Wednesday that fresh quotas worth $10 billion will be issued in several
batches under the outbound Qualified Domestic Institutional Investor or QDII
scheme. The measures, which will be announced in a short period, will better
satisfy the demands of domestic investors for financial assets in the global market,
according to the SAFE.
Full text: click here
[Hong Kong] HKEX plans to
extend trading and clearing of MSCI derivatives to cover Hong Kong holidays
HKEX News, 23 Oct 2020
Hong Kong Exchanges and Clearing Limited
(HKEX) announced plans to extend trading and clearing of all MSCI derivatives
contracts to cover Hong Kong public holidays. This represents HKEX’s latest
market enhancement to support the global trading community in managing their
risks and optimising their portfolios. Implementation of holiday trading will
be subject to further discussion with market participants on their readiness
and regulatory approval.
Full text: click here
[Hong Kong] HKEX welcomes
first Hong Kong/mainland ETF cross-listing
HKEX News, 23 Oct 2020
Hong Kong Exchanges and Clearing Limited
(HKEX) welcomed the first listings of Exchange Traded Funds (ETFs) in Hong Kong
and Shenzhen under the Hong Kong-Mainland ETF Cross-listing Scheme. The two new
ETFs listed on 23 October in Hong Kong – CSOP Yinhua CSI 5G Communications
Theme ETF and Hang Seng Harvest CSI 300 Index ETF, have been approved by the Securities
and Futures Commission. Through the Renminbi Qualified Foreign Institutional
Investor (RQFII) status, each invests 90 per cent or more of its total net
asset value in an ETF approved by the China Securities Regulatory Commission
and currently listed on the SZSE.
Full text: click here
[Singapore] MAS notifies
parties of intent to remove Manager of Eagle Hospitality REIT
MAS News, 26 Oct 2020
The Monetary Authority of Singapore (MAS)
has issued a Notice of Intention (NOI) to direct DBS Trustee Limited, the
Trustee of Eagle Hospitality Real Estate Investment Trust (EH-REIT), to remove
Eagle Hospitality REIT Management Pte Ltd (EH-REIT Mgt), the Manager of EH-REIT
and appoint a new manager. This is in view of numerous breaches of the
Securities and Futures Act (SFA) by EH-REIT Mgt, and serious concerns over its
ability to comply with rules and regulations.
Full text: click here
