You will find here all our publications dedicated to the Financial Services industry.
Anti-money laundering and counter-financing of terrorism solutions
To fight against financial crimes, regulators in Hong Kong including the Securities and Futures Commission, the Hong Kong Monetary Authority and the Insurance Authority are continuously updating their anti-money laundering (“AML”) and counter-financing of terrorism (“CFT”) regulations. With the everchanging regulatory requirements in AML/CFT, the challenges that financial institutions have to face become unprecedented
Update on the New Regulatory Requirements for Conducting Bookbuilding and Placing Activities in Hong Kong
To address intermediaries’ conduct issues in Hong Kong’s Equity Capital Market and Debt Capital Market, the Securities and Futures Commission has recently revised its Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (the “Code”) to include conduct requirements for bookbuilding and placing activities. The relevant requirements have come into effect on 5 August 2022.
Licensing Regime for Dealers in Precious Metals and Stones
A new licensing regime for dealers in precious metals and stones (“DPMS”) was introduced recently. It requires any person who seeks to carry on a business of dealing in precious metals and precious stones in Hong Kong to register with the Commissioner of Customs and Excise starting from 1 January 2023.
Update on the latest regulatory requirements for selling of Protection Linked Plan
With the introduction of a new type of investment-linked assurance scheme (“ILAS”) known as Protection Linked Plan (“PLP”), the Hong Kong Monetary Authority (“HKMA”) have recently published a circular to provide guidance to authorized institutions (“AI”) highlighting on its regulatory requirements and expectations on the selling practice of PLP to enhance customer protection in Hong Kong.
New licensing regime for Virtual Asset Service Providers in Hong Kong
In view of the increasing popularity of virtual asset (“VA”) and VA-related activities to the retail sector in Hong Kong, a new licensing regime for Virtual Asset Service Providers (“VASP”)was introduced in June 2022. Under the new licensing regime, any person who seeks to carry on a business of providing “Virtual Asset Service” is required to apply for a licence from the Securities and Futures Commission. This new licensing regime will further increase the regulatory net for virtual asset-related activities in Hong Kong.
Concurrent SFC-HKMA thematic review on distribution of non-exchange traded investment products
In March 2022, the Securities and Futures Commission and the Hong Kong Monetary Authority announced that they will commence a concurrent thematic review on the distribution of non-exchange traded investment products, such as equity-linked structured products and corporate bonds. The review will focus on selected firms’ compliance with suitability obligations, which aims to assess these firms’ practices with respect to product due diligence, suitability assessments and information disclosure to clients, based on their policies, procedures, systems and controls, as well as senior management oversight of such product distribution.
Regulatory framework and licensing requirements for trustees and custodians – Type 13 regulated activity
In February 2022, the Securities and Futures Commission released its Consultation Conclusions on the proposed regulatory framework and began a further consultation on the details to introduce a new Type 13 regulated activity, which aims to regulate top-level trustees and custodians (i.e. “Depositaries”) of SFC-authorised collective investment schemes, and supervise how they should safeguard scheme assets and oversee scheme operations for public funds in Hong Kong.
Regulatory policy on virtual asset-related activities in Hong Kong of the SFC and the HKMA
In light of the rapid developments in the virtual asset (“VA”) landscape in Hong Kong, the Securities and Futures Commission (“SFC”) and the Hong Kong Monetary Authority (“HKMA”) jointly issued a circular in January 2022 on setting out their regulatory policy for VA-related activities conducted by intermediaries, covering distribution of VA-related products, provision of VA dealing services, and offering of VA advisory services.
Establishing an effective compliance function for financial intuitions in Hong Kong
In an environment where regulatory scrutiny and expectations from the Hong Kong regulators such as the Hong Kong Monetary Authority and the Securities and Futures Commission are growing, more financial institutions are devoting substantial resources into strengthening their compliance function.
Regulators’ expectations on corporate culture for financial institutions
Given the increasing public concerns over financial institutions’ misconduct behaviours, regulators, in particular the Hong Kong Monetary Authority, are raising their requirements on financial institutions’ development of a sound corporate culture that supports prudent risk management and incentivises proper staff behaviour for positive customer outcomes and high ethical standards.