Daily News Headlines

  • News Headlines – 20-21 Jan 2021

    [Hong Kong] Consultation conclusions on the Insurance (Special Purpose Business) Rules

    IA News, 19 Jan 2021

    The Insurance Authority (IA) published the consultation conclusions on the draft Insurance (Special Purpose Business) Rules (the SPB Rules) in respect of restrictions on the sale of insurance-linked securities (ILS) issued in Hong Kong. The draft SPB Rules imposes restrictions on the sale of ILS, which include spelling out the scope of eligible ILS investors, a minimum investment sum, and the penalties for contraventions of sales restrictions. The SPB Rules will be tabled at the Legislative Council for negative vetting and are expected to come into operation together with the Insurance (Amendment) Ordinance 2020 in end-March 2021.

    Full text: click here

    [Hong Kong] Wealth Connect to focus on bonds

    The Standard, 20 Jan 2021

    Wealth Management Connect will operate within existing regulatory frameworks. The move is meant to avoid setting up new rules and regulations so as to launch the WMC as soon as possible, HKMA executive director Darryl Chan told the Asian Financial Forum. WMC will mainly focus on bonds at this stage, but will review the possibility of including insurance products in the future, said Chan.

    Full text: click here

    [Hong Kong] Hong Kong and Thailand regulators sign MoU on Mutual Recognition of Funds

    SFC News, 20 Jan 2021

    The Securities and Futures Commission (SFC) and the Securities and Exchange Commission of Thailand (SEC) have entered into a Memorandum of Understanding (MoU) on Mutual Recognition of Funds (MRF) to allow eligible Hong Kong and Thai public funds to be distributed in each other’s market through a streamlined process. The two regulators have also agreed to expedite the approval process of a local feeder fund investing in an MRF-eligible Thai or Hong Kong master fund and to clarify how they may be operated in a streamlined manner.

    Full text: click here; Circular: click here

    [Hong Kong] HK bank staff arrested in HK$6.3b laundering probe

    Business Times, 21 Jan 2021

    Seven former and current bank employees have been arrested in Hong Kong as part of a major operation against a HK$6.3 billion international money-laundering syndicate, police said on Wednesday (20/1). Superintendent from the Commercial Crime Bureau said it was the first time local bank staff had been arrested for involvement in money laundering. Investigators said those detained are alleged to have helped a key Hong Kong-based member of the syndicate apply for business accounts, including falsifying company documents and coaching applicants for interviews. At least 14 business accounts were opened and handled a total of HK$6.3 billion in illicit funds between 2017 and 2018.

    Full text: click here