Daily News Headlines

  • News Headlines – 17-18 Mar 2021

    [Hong Kong] Focused Review on Incentive Systems of Front Offices in Retail Banks

    HKMA Circular, 16 Mar 2021

    As part of the ongoing supervisory work of the Hong Kong Monetary Authority to promote sound culture in the banking sector, the HKMA will conduct a focused review on the incentive systems of front offices in sale and distribution of banking, investment and insurance products of retail banks. The Focused Review aims to dive deeply into a number of specific areas of incentive systems of 20 retail banks. These areas include how they drive behaviours of frontline staff and affect customer outcomes, in particular their role in minimising potential misconduct behaviour and mis-selling practices in the sale and distribution of banking, investment and insurance products. The HKMA will inform the selected banks of the detailed arrangement of the Focused Review separately.

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    [Hong Kong] SFC reprimands and fines Yardley Securities Limited $5 million for breaches of anti-money laundering regulatory requirements

    SFC Enforcement News, 17 Mar 2021

    The SFC has reprimanded and fined Yardley Securities Limited (YSL) $5 million for failures in complying with AML/CFT regulatory requirements when handling third party fund transfers. The SFC investigation found that, between February and October 2016, YSL failed to take all reasonable measures to ensure that proper safeguards exist to mitigate the risks of money laundering and terrorist financing. Despite red flags suggesting that some of the third party fund transfers in two client accounts between February and May 2016 were unusual or suspicious, YSL processed and approved these transfers without conducting proper enquiries and sufficient scrutiny.

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    [Mainland China] China 'getting close' to southbound Bond Connect programme

    Business Times, 18 Mar 21

    China is getting close to a southbound leg for its Bond Connect programme, Julien Martin, the general manager of the programme's joint venture (JV) operator said. "Southbound trading will happen when northbound trading is extremely successful, insofar as we see so much 'capital in' that there will be need for 'capital out'. I think we are getting close to this time, and I think this is a place that should be watched... for this year." Mr Martin told an online briefing.

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