Daily News Headlines

  • News Headlines – 23-27 Oct 2020

    [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.

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    [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.

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    [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.

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    [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.

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    [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.

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    [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.

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    [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.

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    [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.

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    [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.

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    [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.

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