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Following the end of a 6-month transition period, the Manager-In-Charge (MIC) regime introduced by the Securities and Futures Commission (SFC) is now fully implemented, starting from 17 October 2017. The regime seeks to heighten the accountability of senior management at licensed corporations and to promote greater awareness of their obligations. Under the MIC regime, licensed corporations are required to review their current organisational structure, the roles of senior management and their current responsible officers (ROs)…
To promote the development of Insurtech in Hong Kong, the Insurance Authority (IA) launched two initiatives on 29 September 2017, “Insurtech Sandbox” and “Fast Track”. Insurtech Sandbox Insurtech Sandbox aims to facilitate a pilot run of innovative Insurtech applications by authorized insurers in their business operations. Insurtech Sandbox allows authorized insurers to experiment with new Insurtech and other technology applications without the need to achieve full compliance with the IA’s usual regulatory requirements. Under the…
The Securities and Futures Commission (SFC) recently issued two circulars to licensed corporations engaged in asset management business.  The circulars were issued following routine inspection by the SFC of corporations licensed for such activity. Irregularities identified relating to private funds and discretionary accounts The first circular was issued by the SFC on 31 July 2017 (July Circular) in respect of concerns identified from inspections of licensed corporations engaged in managing private funds and discretionary accounts…
On 28 August 2017, the Securities and Futures Commission (SFC) and the Dubai Financial Services Authority (DFSA) signed a co-operation agreement to collaborate on the promotion of financial innovation in Hong Kong and Dubai. The co-operation agreement sets out a framework for collaboration between the SFC and the DFSA and covers matters such as referrals, information sharing and joint innovation projects. At the end of last year, the Hong Kong Monetary Authority (HKMA) and the…
On 25 August 2017, the Securities and Futures Commission (SFC) and the Hong Kong Police (HKP) signed a memorandum of understanding (MoU) to formalise and strengthen the parties’ co-operation in combating financial crime. The MoU, which became effective on 25 August 2017, covers a variety of matters, including referral of cases, joint investigations, exchange and use of information, and the mutual provision of investigative assistance. The MoU also establishes a framework for closer collaboration on…
Following a consultation paper issued by the Securities and Futures Commission (SFC) in July 2015, the SFC, on 24 July 2017, published consultation conclusions and further consultation on the proposed capital and other prudential requirements for licensed corporations engaged in over-the-counter derivatives (OTCD) activities and other proposed changes to the Securities and Futures (Financial Resources) Rules (FRR). With the aim of aligning Hong Kong regulation with international standards, yet being conscious of the need to…
On 28 June 2017, the Securities and Futures Commission (SFC) launched a consultation on the proposed rules and code for Hong Kong-incorporated open-ended fund companies (OFCs). At present, Hong Kong investment funds can only be established in the form of a unit trust, and not in corporate form. This is due to the restrictions under the Companies Ordinance (Cap. 622) (CO) relating to capital reductions and distributions out of capital. These restrictions make establishing investment…
Hong Kong’s Securities and Futures Commission (SFC) will introduce a new system for mandatory electronic filing of disclosure of interests notifications (DI notices), which will come into effect on 3 July 2017. From that day onwards, market participants are required to submit DI notices electronically through the new Disclosure of Interests Online System (DION System). The changes will affect how substantial shareholders, directors and chief executives of listed corporations and even listed corporations themselves comply…
On 5 May 2017, the Securities and Futures Commission (SFC) issued a consultation paper on the proposed guidelines on online distribution and advisory platforms (Proposed Guidelines). The Proposed Guidelines are a response to the recent expansion of different forms of online platform, which offer a wide range of investment services and functions to various investors. While the new business model brings business opportunities, it also brings certain risks, as users of these online platforms often…
To facilitate mutual assistance in the supervision and oversight of cross-border regulated entities, the Securities and Futures Commission (SFC) and the United Stated Securities and Exchange Commission (SEC) have recently entered into a memorandum of understanding (MoU). The MoU is a response to the growing globalisation of financial markets and the increased cross-border activities of regulated entities in the United States and Hong Kong. Through the MoU, the SFC and SEC have expressed their willingness…