• News Headlines – 30 Oct -3 Nov 2020

    [Hong Kong] SFC suspends Sandra Cheung Wing Yi for 12 months

    SFC Enforcement news, 29 Oct 2020

    The Securities and Futures Commission (SFC) has suspended the licence of Ms Sandra Cheung Wing Yi, former licensed representative of Mason Securities Limited (MSL), for 12 months from 28 October 2020 to 27 October 2021. SFC found that between November 2014 and July 2017, Cheung failed to obtain approval to maintain a securities trading account with an external brokerage firm and conducted 66 personal trades in the aforesaid account, in breach of MSL’s internal control policies.

    Full text: click here

    [Hong Kong] SFC consults on climate-related risks in funds

    SFC Consultation, 29 Oct 2020

    The SFC launched a consultation on proposed requirements for fund managers to take climate-related risks into consideration in their investment and risk management processes and make appropriate disclosures to meet investors’ growing demands for climate risk information and combat greenwashing. Under the proposals, the Fund Manager Code of Conduct would be amended and the SFC will set out expected baseline requirements and standards to facilitate fund managers’ compliance.

    Full text: click here; Consultation Paper: click here

    [Singapore] Two individuals charged for offences under the Securities and Futures Act and Penal Code

    MAS Enforcement News, 29 Oct 2020

    Mr Tan Kheng Yeow and Mr Tan Chun Yong were charged for offences under the Securities and Futures Act (SFA) and Penal Code (PC). The offences relate to the trading in the shares of KTL Global Limited (KTL), a company listed on the Mainboard of the Singapore Exchange, committed between 16 October 2014 and 8 September 2015. During the material period, Mr Tan Kheng Yeow was the CEO and Executive Director of KTL while Mr Tan Chun Yong was a trading representative of OCBC Securities Pte Ltd. They are accused of being involved in a conspiracy for false trading in the shares of KTL, by using multiple trading accounts to carry out trades for the purpose of creating a false or misleading appearance of active trading in the security.

    Full text: click here

    [Singapore] MAS bans two individuals for fraud and dishonest conduct

    MAS Enforcement News, 30 Oct 2020

    The Monetary Authority of Singapore (MAS) has issued prohibition orders (POs) against two former bank employees, Mr Lu Chor Sheng and Mr Tan Swee Thiam Timothy, for fraud and dishonest conduct. Between January 2011 and June 2013, Mr Lu used the OCBC accounts of a friend to place unauthorised forward foreign exchange trades with off-market rates in OCBC’s system, so that he could buy lower and sell higher than the prevailing market rates. Between March 2015 and January 2016 Mr Tan made unauthorised internet bank transfers amounting to around $263,500 from his friend’s UOB account to his personal bank account in order to pay for his living expenses. Mr Lu and Mr Tan are prohibited for a period of 17 years and 9 years respectively from performing any regulated activity under the Securities and Futures Act (SFA) and from providing any financial advisory service under the Financial Advisers Act (FAA).

    Full text: click here

    [Hong Kong] Insurance Authority establishes Disciplinary Panel Pool as a key part of its disciplinary mechanism for the insurance industry

    IA News, 30 Oct 2020

    The Insurance Authority (IA) announced the formation of the Disciplinary Panel Pool as part of its new disciplinary mechanism for licensed insurance intermediaries and authorized insurers. The IA is empowered under the Insurance Ordinance (Cap. 41) to take disciplinary actions against authorized insurers and licensed insurance intermediaries.

    Full text: click here

    [Hong Kong] Insurance Authority publishes the inaugural issue of Conduct In Focus

    IA News, 30 Oct 2020

    The Insurance Authority published the inaugural issue of “Conduct In Focus”, a periodical newsletter which presents statistics and commentary on complaints received by the IA and examines topical regulatory issues relating to conduct in the insurance market. This issue provides a broad overview of the IA’s approach to enforcement, and examines how the general principles of good conduct on which the new regulatory regime is based must be embedded into the culture and governance of companies operating in the insurance market to ensure ethical business practices.

    Full text: click here

    [Hong Kong] SFC publicly censures Ngai Lai Ha and imposes a cold-shoulder order for breach of the Takeovers Code

    SFC Enforcement News, 2 Nov 2020

    The Securities and Futures Commission (SFC) has publicly censured and imposed an 18-month cold-shoulder order against Ms Ngai Lai Ha for breaching the mandatory general offer obligation of the Takeovers Code. Ngai was the chairperson and executive director of International Housewares Retail Company Limited when the breaches took place. On 6 March 2019, Ngai purchased 170,000 of the company’s shares at $2.01 per share. As a result, the shareholding of Ngai and her concert parties (Concert Group) in the company reached 50.50%, representing an increase of more than 2% from the Concert Group’s lowest collective percentage interest of 48.48% in the preceding 12 months. She has breached the Takeovers Code and deprived the company’s shareholders of the right to receive a general offer for their shares.

    Full text: click here

    [Hong Kong] All licensed corporations, licensed representatives and registered institutions within the meaning of the Securities and Futures Ordinance (Cap. 571) or relevant individuals within the meaning of section 20(10) of the Banking Ordinance (Cap. 155)

    SFC Circulars, 2 Nov 2020

    The SFC reminds all licensed corporations, licensed representatives, registered institutions or relevant individuals that the “cold-shoulder order in respect of Ngai Lai Ha” requires them must not, without the prior consent of the Executive in writing, act or continue to act directly or indirectly in their capacity as licensed corporations, licensed representatives, registered institutions or relevant individuals for Ms Ngai or any corporation controlled by her other than International Housewares Retail Company Limited and its subsidiaries; or knowingly assist directly or indirectly in a breach of this cold-shoulder order during the period commencing on 2 November 2020 and ending on 1 May 2022.

    Full text: click here

    [Hong Kong] Hong Kong FinTech Week 2020 and Regtech Adoption in HK Banking Sector

    HKMA News, 2 Nov 2020

    The Hong Kong Monetary Authority (HKMA) co-organised with InvestHK Hong Kong FinTech Week 2020, the city’s flagship fintech event, and announced a range of initiatives to further foster the fintech ecosystem and support corporates, particularly small and medium-sized enterprises. The HKMA has developed a two-year roadmap to further promote Regtech adoption in the Hong Kong banking sector. The roadmap, as laid out in a White Paper entitled “Transforming Risk Management and Compliance: Harnessing the Power of Regtech”, includes a series of promotional activities to be rolled out over the next two years, aiming at fostering a more diverse and interactive Regtech ecosystem in Hong Kong. Further details about the roadmap will be announced in a separate press release.

    Full text: click here; The roadmap: click here

    [Singapore] Explanatory Brief for Payment Services (Amendment) Bill

    MAS News, 2 Nov 2020

    MAS is introducing legislative amendments to the Payment Services Act 2019 to implement the enhanced international standards adopted by the Financial Action Task Force (“FATF”) in June 2019 that are aimed at addressing the ML/TF risks posed by virtual asset service providers that are not already regulated as financial institutions. MAS also intends to amend the PS Act to mitigate the ML/TF risks arising from certain cross-border business models that have surfaced. Aside from amendments related to anti-money laundering and countering terrorist financing, MAS proposes to introduce powers to impose measures on digital payment token service providers and make other miscellaneous amendments to the PS Act.

    Full text: click here

    [Singapore] Reply to Parliamentary Question on Singapore's Response to Financial Action Task Force's Report on Money Laundering and Illegal Wildlife Trade

    MAS News, 2 Nov 2020

    The Senior Minister replied to the Parliamentary Question on the Government's response to the Financial Action Task Force's (FATF) report on Money Laundering and the Illegal Wildlife Trade. Singapore’s approach is consistent with the recommendations in the FATF report. Several agencies, including the Commercial Affairs Department, National Parks Board and the Monetary Authority of Singapore work together to combat money laundering linked to illegal wildlife trade by enacting laws and regulations that target illegal wildlife trade and associated money laundering.

    Full text: click here

    [Singapore] Speech by Deputy Prime Minister, Coordinating Minister for Economic Policies and Minister for Finance, Mr Heng Swee Keat, at the SIRC 2020 Re-Mind on 2 November 2020

    MAS News, 2 Nov 2020

    Mr Heng Swee Keat, Deputy Prime Minister, Coordinating Minister for Economic Policies and Minister for Finance announced the launch of the Global-Asia Insurance Partnership, a tripartite partnership between the global insurance industry, regulators and academia, to produce actionable research insights, develop policy recommendations, and co-create innovative solutions for the region.

    Full text: click here

    [China] Jack Ma summoned by China financial regulators ahead of Ant IPO

    Business Times, 2 Nov 2020

    Four Chinese regulators including the central bank and banking watchdog invited billionaire Jack Ma and Ant Group's top executives to a supervisory interview on Monday, a rare meeting with multiple financial regulators that underscores rising government scrutiny of the company before its stock-market debut.

    Full text: click here

    [Hong Kong] Virtual asset firms to face regulation

    The Standard, 3 Nov 2020

    Hong Kong intends to set up a licensing regime to regulate virtual asset service providers, says Secretary for Financial Services and the Treasury Christopher Hui Ching-yu. He added that the government will conduct public consultations on the system.

    Full text: click here

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