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Further to our previous blog post, the provisions of the Companies (Amendment) Ordinance 2018 will take effect on 1 March 2018. This amendment to the Companies Ordinance (Cap 622) (the Companies Ordinance) introduces new requirements on a company to identify persons who have “significant control” over the company and to maintain certain information about such persons in a new statutory “register of significant controllers”. All companies incorporated under the Companies Ordinance in Hong Kong…
The Companies (Amendment) Bill 2017 (the Bill) was recently published by the Hong Kong government and is under consideration by Hong Kong’s Legislative Council. The Bill seeks to amend the Companies Ordinance (Cap 622) (the Companies Ordinance) to require certain companies incorporated in Hong Kong to obtain and maintain information about beneficial owners. Subject to the Bill being passed, it is expected that the amendments will come into operation on 1 March 2018. The Bill…
A two-month consultation on proposed measures to reduce and mitigate cyber security risks associated with internet trading of securities in Hong Kong (the Consultation) was launched on 8 May 2017 by the Securities and Futures Commission (the SFC). The Consultation follows a recent review by the SFC of resilience of brokers in Hong Kong to cyber-attacks (such as the hacking of trading accounts, installation of ransomware and denial of service attaches) and is set against…
A two-month consultation on proposed measures to reduce and mitigate cyber security risks associated with internet trading of securities in Hong Kong (the Consultation) was launched on 8 May 2017 by the Securities and Futures Commission (the SFC). The Consultation follows a recent review by the SFC of resilience of brokers in Hong Kong to cyber-attacks (such as the hacking of trading accounts, installation of ransomware and denial of service attaches) and is set against…
The Securities and Futures Commission (the SFC) recently launched a public consultation process in respect of proposed amendments to the Securities and Futures (Professional Investor) Rules (Chapter 571D of the Laws of Hong Kong) (the Professional Investor Rules).  The public consultation process was launched on 1 March 2017. The principal changes proposed in respect of the Professional Investor Rules are as follows: 1. Expanding the definition of corporations which qualify as professional investors The SFC…
What you and your board need to know Changes to GN10 From 1 January 2017, the first phase of changes to the Hong Kong Insurance Authority’s Guidance Note on the Corporate Governance of Authorized Insurers (GN10), will take effect. The second phase of changes (which are more substantive) will take effect from 1 January 2018, allowing more time for transition. A new requirement for persons in “control functions” to be fit and proper and for…
The Hong Kong securities regulator, the Securities and Futures Commission (SFC), will commence a pilot project next month to assess how ‘fintech’ can be used in its regulatory monitoring processes with a view to implementing new systems. A sample group of 20 banks will be participating in the pilot project along with an external technology firm. Regulators across the globe are increasingly making use of fintech for data analysis purposes in a trend known as…
On 6 September 2016, the Hong Kong Monetary Authority (HKMA) released a circular advising the launch of its Fintech Supervisory Sandbox (Sandbox). The Sandbox is intended to facilitate pilot trials of newly developed technologies and applications by authorized institutions (AIs) without the need to achieve full compliance with HKMA’s requirements, thereby allowing AIs to collate data and feedback and make the necessary refinements to their technology/application prior to a formal launch to market. The HKMA…
The Office of the Commissioner of Insurance (OCI) recently released its 2015 Annual Report, highlighting the considerable challenges and changes ahead for the insurance industry and the OCI. Essential preparation is underway for the OCI to be succeeded by Hong Kong’s new insurance regulator, the Independent Insurance Authority (IIA), which is expected to start operation in late 2016, but not all insurance regulatory functions will be transferred to the IIA until 2018. In the past…
The Office of the Commissioner of Insurance (OCI) issued on 1 June 2016 a new guidance note on prudent practices relating to reinsurance management and general guiding principles in assessing the adequacy of the reinsurance arrangements of authorized insurers (the Guidance Note). The purpose of the Guidance Note is to set out Hong Kong reinsurance requirements for authorized insurers with reference to the international standards set out in the Insurance Core Principles, Standards, Guidance and…