Daily News Headlines

  • News Headlines – 19-23 Feb 2021

    [Hong Kong] SFC issues restriction notices to 13 brokers to freeze client accounts linked to suspected social media ramp-and-dump scam

    SFC Enforcement News, 18 Feb 2021

    The SFC has issued restriction notices to 13 brokers, including Celestial Securities Ltd, Central China International Securities Co Ltd and China Industrial Securities International Brokerage Ltd, to prohibit them from dealing with or processing certain assets held in 54 trading accounts, which are related to a suspected social media ramp-and-dump scam involving the manipulation of the market in the shares of a company listed on The Stock Exchange of Hong Kong Limited between September 2020 and November 2020.

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    [Hong Kong] Circular to Licensed Corporations Engaged in Asset and Wealth Management Activities - Asset and Wealth Management Activities Survey 2020

    SFC Circulars, 19 Feb 2021

    The SFC have commenced the Asset and Wealth Management Activities Survey 2020 as an annual exercise to collect information on asset and wealth management activities in Hong Kong for regulatory and market facilitation purposes and to develop a better understanding of the state of the asset and wealth management industry in Hong Kong. Licensed corporations, especially those that had had gross operating income derived from asset management, giving advice on funds / portfolios and / or private banking / private wealth management during the year of 2020, are welcomed to complete the questionnaire through the online submission system.

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    [Singapore] Consultation Paper on Proposed Revisions to Enterprise Risk Management, Investment and Public Disclosure Requirements for Insurers

    MAS Consultation, 19 Feb 2021

    This consultation paper sets out MAS' proposals to enhance the current requirements relating to enterprise risk management, investment risk management and public disclosure practices for insurers. The proposed requirements set out in this consultation paper are designed to strengthen insurers’ risk management practices, which includes the enhancement of liquidity risk management and stress testing processes, and to help prevent insurance sector vulnerabilities and exposures from developing into systemic risks.

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    [Singapore] Notice 306 Market Conduct Standards for Life Insurers Providing Financial Advisory Services as defined under the Financial Advisers Act

    MAS Regulation, 19 Feb 2021

    This Notice applies to all direct life insurers which provide financial advisory services as defined under the Financial Advisers Act and set out requirements and standards for life insurers providing financial advisory services. Currently, life insurers are required to submit information on its provision of financial advisory services annually to MAS as per paragraph 19 of MAS Notice 306. MAS has performed a review of the information collected under MAS Notice 306, and determined that the submission requirement for Appendix A is no longer required.

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    [Singapore] Former UOB V-P accused of multiple offences including misappropriating more than S$5m

    Business Times, 19 Feb 2021

    The former vice-president of UOB Ling Shek Lun has been hauled to a district court after he allegedly misappropriated cash totalling more than S$5.3 million while he was holding the position. Ling was charged in court on Feb 10, currently faces two cheating charges, 11 counts of criminal breach of trust, 28 counts of forgery for the purpose of cheating, 54 counts of forgery and 47 counts of dealing the benefits of his alleged criminal activities. He is accused of misappropriating a total of nearly S$5.4 million and S$18,600 on multiple occasions between 2004 and 2014. He is also accused of transferring more than £1.8 million of the benefits of his alleged criminal conduct to an individual.

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    [Mainland China] New requirements set to tighten control over online bank lending risks

    China Daily, 21 Feb 2021

    China unveiled detailed requirements and quantitative indicators to further tighten control over risks in relation to commercial banks' online lending business facilitated by their partners, the China Banking and Insurance Regulatory Commission announced on Saturday. According to the new requirements, for a single online loan jointly offered by a commercial bank and a partner, the partner must provide no less than 30 percent of the loan fund.

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    [Hong Kong] SFC reprimands and fines Brilliance Asset Management Limited $3.15 million over short position reporting failures

    SFC Enforcement News, 22 Feb 2021

    The SFC has reprimanded Brilliance Asset Management Limited and fined it $3.15 million over failures to ensure short position reports (SPRs) for four collective investment schemes (CISs) under its management were accurate and compliant with the requirements under the Securities and Futures (Short Position Reporting) Rules. The SFC found that Brilliance had prepared and submitted SPRs to the SFC for these four CISs between 8 July 2016 and 30 August 2019, but a total of 7,814 short positions held respectively by these CISs were either misstated or omitted in these reports. Since Brilliance failed to incorporate the code of a new prime broker in its automated programme, short positions held through the broker were omitted in its calculations of the total short positions set out in the SPRs, resulting in errors in the SPRs.

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    [Hong Kong] Circular to Money Service Operators - Anti-Money Laundering / Counter-Terrorist Financing

    C&ED Circular, 22 Feb 2021

    Hong Kong Customs and Excise Department issued a circular regarding six updated list of United Nations Sanctions, which are “individuals, groups, undertakings and entities” under section 25 of the United Nations Sanctions (ISIL and AlQaida) Regulation (Cap. 537CB), updated list specifying terrorists and terrorist associates designated by the UNSC, updated list specifying “individuals and entities” under section 29 of the United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 (Cap. 537CJ), the United Nations Sanctions (Central African Republic) Regulation 2020 (Amendment) Regulation 2020, the United Nations Sanctions (Mali) Regulation 2019 (Amendment) Regulation 2020, and the United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2021.

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    [Singapore] Central Clearing of SORA Derivatives Extended To 21-Year Tenor

    ABS News, 22 Feb 2021

    LCH announced the extension of central clearing for over-the-counter SORA derivatives from 5.5-years to 21-years. With the LCH move, the MAS will extend the tenor of its daily SORA derivatives auctions with major derivatives dealers from 5-years to 20- years. The extension would enable a build-up of liquidity across all tenors in SORA Overnight Index Swaps and basis swaps between SOR and SORA.

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