Regulatory Updates

This consultation document assumes that the rules created by the Monetary Authority under section 97C of the Banking Ordinance will be entitled the Banking (Capital)(Amendment) Rules 2023 (BCAR). The BCAR is divided into five parts, with Part 1 outlining the commencement arrangements for the different parts, Part 2 detailing the [...]

Revision of two Specified Forms in relation to Application for Disclosure of Protected Information

As of June 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 has implemented a licensing system for virtual asset service providers. This means that licensed VASPs are now considered financial institutions under the updated law. The Companies Registry has responded to this change by updating forms related [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Somalia) Regulation 2019

An updated list of “individuals and entities” subject to section 29 of the United Nations Sanctions (Somalia) Regulation 2019 (Cap. 537CG) was recently published on the Commerce and Economic Development Bureau’s website on May 31, 2023. The list can be found in Attachment 2, while Attachment 1 contains a press [...]

Circular on transitional arrangements of the new licensing regime for virtual asset trading platforms

Starting June 1, 2023, centralized virtual asset trading platforms (VATPs) operating in Hong Kong must obtain a license from the Securities and Futures Commission (SFC) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Pre-existing VATPs can continue to provide virtual asset (VA) services until May 31, 2024, without violating licensing [...]

Circular on implementation of new licensing regime for virtual asset trading platforms

Starting from 1 June 2023, centralised virtual asset trading platforms in Hong Kong must apply for a license under the Securities and Futures Ordinance and/or the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The Securities and Futures Commission has published guidelines, FAQs, and a licensing handbook to help with the licensing [...]

Prototype of a Green Classification Framework for Hong Kong

May 31, 2023

The Hong Kong Monetary Authority (HKMA) has released a discussion paper titled “Prototype of a Green Classification Framework for Hong Kong,” which outlines their current thinking on a local green taxonomy and seeks feedback from stakeholders on its development and implementation. The goal of this framework is to increase transparency [...]

Amendments to the Rules of the Exchange (the “Rules”)

May 30, 2023

The Securities and Futures Commission has given approval to amend the Rules by removing provisions related to the New Securities Trading Device (NSTD) arrangement, which is no longer in operation since December 31, 2022. Individuals who hold Stock Exchange Trading Rights and Exchange Participants should take note of these changes. [...]

Amendments to Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility Licensees)

May 29, 2023

The Hong Kong Monetary Authority (HKMA) has announced the release of a revised Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility Licensees). This follows an industry consultation and the guideline will become effective from 1 June 2023. SVF licensees must review the revised guideline and take [...]

Amendments to Guideline on Anti-Money Laundering and Counter- Financing of Terrorism (For Authorized Institutions)

May 29, 2023

The Hong Kong Monetary Authority (HKMA) has published a revised Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) for Authorized Institutions (AIs) in the Gazette. The revised AML/CFT Guideline will be effective from 1 June 2023 and AIs are advised to review and implement appropriate measures in line with [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2023

May 29, 2023

The Yemen Amendment Regulation, which was made under the United Nations Sanctions Ordinance (Cap. 537), has been published in the Gazette on 25 May 2023 and is now in effect. It modifies the United Nations Sanctions (Yemen) Regulation 2019 to implement specific decisions on sanctions regarding Yemen, such as the [...]

Change of Authentication for CCASS Terminal – Official Launch of Two-Factor Authentication

May 25, 2023

The circular from April 3, 2023, provides information about the upcoming launch of Two-Factor Authentication (2FA) to replace the existing smartcard for terminal access to CCASS. The successful completion of briefings for the launch of 2FA preparation has been announced, and the official launch is tentatively scheduled for June 12, [...]

Circular to Licensed Corporations and Associated Entities Revised financial return form, analysis of client assets for associated entity and audit questionnaire

May 25, 2023

The Securities and Futures Commission (SFC) has released updated versions of three forms: the financial return form, analysis of client assets for associated entity form, and the audit questionnaire. The new financial return form must be used for submitting a return for any period ending on or after December 1, [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Amendments to Anti-Money Laundering and Counter-Financing of Terrorism Guidelines

May 25, 2023

The Securities and Futures Commission (SFC) has updated its anti-money laundering and counter-financing of terrorism (AML/CFT) guidelines for licensed corporations and associated entities to include provisions related to the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, which will come into effect on June 1, 2023. The revisions include updated [...]

Revised on Application for Disclosure of Protected Information

May 24, 2023

The Company Registry (CR) has released a gazette notice under section 23 Companies Ordinance (Chapter 622). The revised Ordinance will come into effect on from 1 June 2023. Form PS3 for Application for Disclosure of Protected Information is revised according to section 58(3) of the Ordinance. Resource: https://www.cr.gov.hk/en/publications/docs/GN2954_e.pdf [...]

SFC concludes consultation on regulation of virtual asset trading platforms

May 24, 2023

The Securities and Futures Commission (SFC) has announced the release of the Consultation Conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC. During the consultation period, the SFC received 152 written submissions. The proposed requirements were generally well-received, the proposal to allow licensed [...]

Upcoming Launch of the HKD-RMB Dual Counter Model Eligible for Market Making in Hong Kong Securities Market

The Hong Kong Stock Exchange has announced a tentative launch date of 19 June 2023 for its HKD-RMB Dual Counter Model, which will allow the trading of securities in both Hong Kong dollars and Chinese yuan. The launch is subject to market readiness, and the exchange is currently accepting applications [...]

Amendments to the General Rules of CCASS (the “Rules”) and the CCASS Operational Procedures (the “Procedures”) of Hong Kong Securities Clearing Company Limited (“HKSCC”)

To support the implementation of the HKD-RMB dual counter initiative, the Rules and Procedures of HKSCC have been amended and approved by the Securities and Futures Commission. This includes the addition of a new Intra-day Counter Transfer Instruction which will enable CCASS Participants to transfer multi-counter securities more efficiently within [...]

Amendments to the Rules of the Exchange and the Operation Procedures for Stamp Duty Collection of The Stock Exchange of Hong Kong Limited (“SEHK”)

The Securities and Futures Commission has approved changes to the Rules of the Exchange and Operation Procedures for Stamp Duty Collection of SEHK. These amendments will allow the HKD-RMB dual counter initiative, which includes trading securities in two different currencies and a new dual counter market making program. Stamp duty [...]

Amendments to the Clearing Procedures (the “Procedures”) of OTC Clearing Hong Kong Limited (“OTC Clear”)

OTC Clear has been authorized by the Securities and Futures Commission to make changes to its Procedures. These changes include discontinuing the clearing services for certain types of swaps referencing USD LIBOR and THBFIX, and introducing new ISDA compounding conventions for overnight floating rate options such as SOFR. The amendments [...]

HKEX to Launch HKD-RMB Dual Counter Model on 19 June 2023

On June 19, 2023, the Hong Kong Exchanges and Clearing Limited (HKEX) plans to launch a new model and program called the Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model, which aims to support the trading and settlement of RMB-denominated securities in Hong Kong. Interested parties may now apply to [...]

SFC consults on revisions to takeovers and share buy-back rules

The Securities and Futures Commission (SFC) has launched a consultation on suggested changes to the Codes on Takeovers and Mergers and Share Buy-backs. The proposed amendments aim to clarify existing practices and make other clarifications to the Codes. The consultation paper also introduces measures to reduce the environmental impact of [...]

Additional Practice Session for Migration of Northbound (NB) Broker-To-Client Assigned Number (BCAN) File Submission and Download Functions to Electronic Communication Platform (ECP)

May 17, 2023

Most of the China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) have completed the mandatory Practice Session (PS1) for migrating their NB BCAN file submission and download functions to ECP. An additional Practice Session (PS2) will be held on 20 May 2023 for those who did not complete [...]

New speech by Julia Leung: Luncheon remarks at Hong Kong REITS Association

May 17, 2023

Ms Julia Leung, the Chief Executive Officer of the Securities and Futures Commission, thanks the audience for inviting them to deliver the keynote at an event celebrating the establishment of the Hong Kong REITS Association. They applaud the efforts of the association to promote the development of the REIT market [...]

Swap Connect commences yesterday

May 16, 2023

The Securities and Futures Commission (SFC) is pleased with the launch of Swap Connect, a mutual access program between Hong Kong and Mainland China. It started with Northbound Trading, allowing investors from Hong Kong and other places to participate in the Mainland interbank interest rate swap market. This is the [...]

Further Information in relation to Swap Connect

May 15, 2023

OTC Clearing Hong Kong Limited is pleased to announce the launch of the new clearing service for Swap Connect, a mutual access program between Hong Kong and Mainland China’s interbank interest rate swap markets. The program will initially cover CNY interest rate swaps with benchmark rate options of 7-day Repo [...]

Large exposures: consultation on amendments to MA(BS)28 Return

May 15, 2023

The HKMA has requested feedback on revised templates for the Return of Large Exposures (MA(BS)28) in response to proposed amendments to the Banking (Exposure Limits) Rules (BELR). The revisions aim to put into effect changes resulting from proposed BELR amendments, address International Monetary Fund recommendations in relation to the prudential [...]

Liquidity Risk Multiplier in Initial Margin calculation for CNY IRS

May 12, 2023

OTC Clear has completed the calibration of the Liquidity Risk Multiplier for China Yuan interest rate swap (CNY IRS) in accordance with Chapter 4 of their Clearing Procedures. The levels of the Liquidity Risk Multiplier have been determined based on the results of a poll conducted with Clearing Members in [...]

Enhancement to the Clearable Product Features for Swaps

OTC Clearing Hong Kong Limited (OTC Clear) has received approval from the Securities and Futures Commission (SFC) for enhancements to the clearable product features for deliverable interest rate swaps (IRS) and cross currency swaps (CCS). The enhancements include acceptance of trades referencing “USD-SOFR” for registration, an update to the number [...]

Regtech Adoption Practice Guide

The circular informs the industry about the latest edition of the Regtech Adoption Practice Guide, which is the ninth issue. The focus of this issue is on Regtech solutions that can assist banks in improving their privacy compliance activities and establishing customer trust in light of the increasing amount of [...]

AML Regtech: Network Analytics

The Hong Kong Monetary Authority (HKMA) has published a report titled “AML Regtech: Network Analytics,” which recommends that banks adopt network analytics to bolster their anti-money laundering (AML) systems against financial crimes. The report suggests that combining intelligence-led analytical tools with rules-based monitoring systems can help banks to enhance their [...]

Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Trust or Company Service Providers (June 2023) will come into effect on 1 June 2023

The Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 will become effective on June 1, 2023. It covers several small and technical issues under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615). As a result, the Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Trust or [...]

Amendments to the Clearing Rules and Clearing Procedures of OTC Clearing Hong Kong Limited (“OTC Clear”)

May 9, 2023

OTC Clear’s Clearing Members have been informed that amendments to the Clearing Rules and Clearing Procedures have been approved by the Securities and Futures Commission. These changes will enable mutual access between the Hong Kong and Mainland interest rate swap markets, known as “Swap Connect”. This initiative is being undertaken [...]

Regulatory Capital Treatments in relation to Swap Connect

May 9, 2023

This circular explains the regulatory capital and reporting treatments for assets posted by authorized institutions (AIs) for participating in Swap Connect, an arrangement that allows overseas and Mainland investors to participate in financial derivatives markets in Mainland and Hong Kong. Hong Kong Exchanges and Clearing Limited and Shanghai Clearing House [...]

Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Licensed Money Lenders (June 2023) will come into effect on 1 June 2023

May 8, 2023

Starting from June 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 will become effective, which covers various technical issues under the existing Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615). As a result, the Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Licensed Money [...]

The People’s Bank of China, Securities and Futures Commission and Hong Kong Monetary Authority to commence mutual access between the Mainland and Hong Kong interest rate swap markets

May 8, 2023

Under the Northbound Trading of Swap Connect, which will be launched on 15 May 2023, the initial eligible products will be interest rate swap contracts quoted, transacted and settled in RMB. Mainland investors must sign an agreement with CFETS for providing price quotation and be a Clearing Member of SHCH [...]

Applicable Jurisdictional Countercyclical Capital Buffer (CCyB) Ratio for Hong Kong

May 5, 2023

The Monetary Authority has decided to keep the Hong Kong jurisdictional CCyB ratio at 1%, after reviewing various indicators and information, including the IRC’s indicative buffer guide. The IRC calculates the CCyB based on deviations in credit to GDP and residential property prices to rentals from their long-term trends. The [...]

Regulation and Supervision of Trust Business

May 3, 2023

The HKMA has issued a circular requiring AIs and their subsidiaries conducting trust business in Hong Kong to comply with the Supervisory Policy Manual module TB-1 and the Code of Practice for Trust Business by June 1, 2023. A list of trustees who observe the Code will be published annually. [...]

Mandatory Practice Session for Migration of Northbound (NB) Broker-To-Client Assigned Number (BCAN) File Submission and Download Functions to Electronic Communication Platform (ECP)

A mandatory practice session for the migration of Northbound Broker-to-Client Assigned Number (BCAN) file submission and download functions to Electronic Communication Platform (ECP) will be held on May 13th, 2023. All China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) must participate in the session to verify their readiness [...]

Amendments to the Clearing Rules of OTC Clearing Hong Kong Limited

OTC Clear’s Clearing Members are advised that the Securities and Futures Commission has authorized amendments to OTC Clear’s Clearing Rules. These changes are intended to establish general guidelines for converting floating rates based on interbank offered rates to a new floating rate and to implement a conversion plan for outstanding [...]

Currency Conversion Arrangement Involving Onshore RMB (CNY) under Northbound Swap Connect

This circular informs the recipient of the currency conversion activities that their bank may undertake under Swap Connect, which is an arrangement that enables overseas and Mainland investors to participate in the financial derivatives markets in the Mainland and Hong Kong. In the initial stage, Northbound Trading will commence first, [...]

HKMA Annual Report 2022 and Sustainability Report 2022

The Hong Kong Monetary Authority (HKMA) has released its Annual Report 2022, which includes the financial statements of the Exchange Fund. The report provides an overview of monetary and banking affairs and highlights the HKMA’s activities throughout 2022, as well as its priorities and plans for 2023. Additionally, the HKMA [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Early Alert on United Nations Sanctions

On April 26, 2023, two individuals were added to the sanctions list by the United Nations Security Council’s sanctions committee for ISIL and Al-Qaida. To ensure compliance with the changes made by the committee, licensed corporations and associated entities must update their screening databases for sanctions screening of customers and [...]

Circular to Licensed Corporations which are Participants of The Stock Exchange of Hong Kong Limited or Hong Kong Futures Exchange Limited – Licence Holders Insurance Scheme for Exchange Participants

This circular explains the insurance requirements for licensed corporations engaging in regulated activities, specifically dealing in securities or futures contracts. The Securities and Futures Ordinance mandates licensed corporations to take out and maintain insurance for specified risks. An Industry Working Group, with support from the SFC, has re-appointed Marsh (Hong [...]

Access to banking services for corporate customers

The Hong Kong Monetary Authority (HKMA) considers maintaining a safe and efficient banking system, as well as promoting access to basic banking services for legitimate businesses, as crucial priorities. As part of its anti-money laundering and counter-financing of terrorism efforts, the HKMA requires authorized institutions (AIs) to adopt a risk-based [...]

New synopsis: Julia Leung at Bloomberg Policy Series dialogue

The Hong Kong Monetary Authority (HKMA) and the Banking Sector SME Lending Coordination Mechanism have announced a further 90-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme, which will expire at the end of July 2023. The deferment applies only to existing trade loans under the [...]

Banking Sector Defers Repayment of Trade Facilities by Another 90 Days

The CEO of the Securities and Futures Commission (SFC), Ms. Julia Leung, discussed the SFC’s regulatory priorities in a recent one-on-one discussion with Bloomberg. Leung emphasized maintaining resilient and orderly markets, promoting investor protection, fostering responsible innovation, and enhancing Hong Kong’s competitiveness as an international financial center (IFC) and gateway [...]

SFC announces carbon neutrality commitment

The Securities and Futures Commission (SFC) has announced its goal to become a carbon-neutral organization before 2050 and reduce its total carbon emissions by 50% before 2030. To achieve this, the SFC has conducted a carbon footprint assessment and identified key sources of emissions, such as electricity consumption and investments, [...]

The Companies (Amendment) Ordinance 2023 will come into operation tomorrow (28 April 2023)

Starting tomorrow (April 28), the Companies (Amendment) Ordinance 2023 will be in effect, allowing companies to hold general meetings in virtual or hybrid formats. This amendment was passed by the Legislative Council on January 18, and will provide companies with greater flexibility in conducting their corporate affairs according to their [...]

Binding payment cards for contactless mobile payments

April 26, 2023

The Hong Kong Monetary Authority (HKMA) has seen an increase in fraudulent cases involving payment cards being linked to new mobile payment services. Fraudsters have been using phishing methods to obtain payment card information and one-time passwords from cardholders, resulting in unauthorized transactions. To address this issue, the HKMA has [...]

Principles for Handling of Unauthorised Payment Card Transactions

April 26, 2023

The Hong Kong Monetary Authority has noticed a rise in unauthorized payment card transactions involving fraud and scams. They remind banks to investigate each case individually and treat cardholders fairly. Banks should consider all relevant circumstances before holding the cardholder liable for losses. The HKMA emphasizes that banks must have [...]

Dedicated 100% Loan Guarantee Schemes for Travel and Cross-boundary Passenger Transport Trades

April 26, 2023

The Hong Kong government is launching a 100% loan guarantee scheme to support the recovery of the travel industry between Mainland and Hong Kong. The scheme will provide fully guaranteed loans to eligible passenger transport operators and licensed travel agents, administered by HKMC Insurance Limited. Participating institutions will conduct customer [...]

Official Launch of Trading Calendar Enhancement for Stock Connect – Reminder

The Hong Kong Securities Clearing Company Limited will launch a trading calendar enhancement on April 24, 2023, which allows trading under Stock Connect on all trading days when both the Hong Kong and Mainland China markets are open. The first additional Northbound trading day will be on May 25, 2023. [...]

Climate risk stress test to Authorized Institutions

The HKMA has released guidelines for the second round of the climate risk stress test (CRST) to authorized institutions (AIs). The CRST has been enhanced to provide a more comprehensive assessment of AIs’ exposure to climate risks and improve their capabilities in managing them. The second round includes a new [...]

Hong Kong Monetary Authority and Hong Kong Police Force co-host sharing session with banking industry on anti-deception efforts

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Police Force (HKPF) held a high-level session on anti-fraud efforts, attended by senior representatives from the HKMA, HKPF, and retail banks. The purpose was to explore new and innovative ways to prevent scams and intercept illicit proceeds. The HKMA has [...]

Consultation on annual update to Financial Services Providers list under OTC derivatives regulatory regime

The HKMA and SFC have released a joint consultation on updates to the list of Financial Services Providers under the OTC derivatives clearing regime. The proposed changes involve adding, removing, and updating the name of one entity. Interested parties can submit comments until May 19, 2023, and the consultation paper [...]

Further information on the dual counter model eligible for market making in Hong Kong securities market

April 19, 2023

Hong Kong Securities Clearing Company (HKSCC) has announced the launch of the HKD-RMB Dual Counter Model in the first half of 2023 to make cross counter transfers of multi-counter securities more efficient and flexible. The Multi-counter Transfer Instruction (MCTI) process will undergo some changes, including an extension of the input [...]

Suspension of CCASS Services on 13 May, 20 May, 27 May(Saturday)

CCASS online services will be suspended on 13 May, 20 May, 27 May for facilitating internal system testing and upgrading activities. The Production Reports will be available on the upcoming Monday for the above Saturday. resource:https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKSCC/2023/ce_HKSCC_SET_015_2023.pdf [...]

SFC welcomes Stock Exchange consultation on climate-related reporting requirements for listed companies

The SFC in Hong Kong has expressed its support for SEHK’s public consultation on climate-related reporting requirements for listed companies. The aim is to align Hong Kong with the global baseline for climate-related reporting standards set to be published by the ISSB. The SFC CEO, Ms Julia Leung, believes that [...]

Exchange Publishes Consultation Paper on Enhancement of Climate Disclosure under its ESG Framework

The Stock Exchange of Hong Kong has released a consultation paper seeking feedback on proposals to improve climate-related disclosures under the ESG framework. The proposed changes include mandating all issuers to disclose climate-related information in their ESG reports and introducing new disclosures aligned with the ISSB Climate Standard. The proposal [...]

New speech by Keith Choy: Keynote Speech at Hong Kong Web3 Festival 2023

Mr Keith Choy has given a speech at the at the Hong Kong Web3 Festival 2023. In the speech, Mr Choy talks about the rise of blockchain technology and the importance of regulation in the industry. He emphasizes the need for collaboration between regulators and the industry to promote innovation [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

April 12, 2023

As of the end of March 2023, the Hong Kong Monetary Authority (HKMA) has disclosed that Hong Kong’s official foreign currency reserve assets totaled US$430.7 billion, which is an increase from US$429.1 billion recorded in February 2023. The foreign currency reserve assets, which include unsettled foreign exchange contracts, amounted to [...]

Renminbi (RMB) Haircut

April 11, 2023

HKSCC has adjusted the Renminbi haircut rates to 3.0% with settlement currency prescribed in HKD and USD for the settlement of Marks, Margin, and Collateral requirements. This change will be effective from the close of business on April 12, 2023, and Clearing Participants should make necessary funding arrangements for the [...]

Change of Authentication for CCASS Terminal – (i) Reminder of Email Registration for CCASS Users and Delegated Administrators; (ii) Briefings for the Launch of Two-Factor Authentication Preparation

April 4, 2023

CCASS Participants (CPs) and Designated Banks (DBs) must register the designated email addresses of their CCASS users and DAs before 28 April 2023 to enable Two-Factor Authentication (2FA) to access CCASS. Failure to register an email address for a CCASS user or DA by the above-mentioned date will result in [...]

Revision of two Specified Forms in relation to Application for Disclosure of Protected Information

April 3, 2023

Starting April 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, which establishes a registration regime for dealers in precious metals and stones, has taken effect. The amendment adds “A Category B Precious Metals and Stones registrant” to the definition of Designated Non-Financial Businesses and Professions (DNFBP). As [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism – United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 (Amendment) Regulation 2023

April 3, 2023

The United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 (Amendment) Regulation 2023 has been published in the Gazette, effective immediately. The amendment removes the notification requirement for relevant exemptions of arms embargo and reflects the latest exemption arrangements for asset freeze. Licensed corporations and associated entities must comply [...]

Appointments to SFC committees

April 3, 2023

The Securities and Futures Commission (SFC) has announced new appointments and reappointments to several committees starting April 1, 2023, including the Academic and Accreditation Advisory Committee, Committee on Real Estate Investment Trusts, Disciplinary Chair Committee, Public Shareholders Group, SFC (HKEC Listing) Committee, Share Registrars’ Disciplinary Committee, Takeovers and Mergers Panel, [...]

HKMA Quarterly Bulletin (March 2023 Issue)

March 31, 2023

The March 2023 issue of the HKMA’s Quarterly Bulletin has been published, featuring an article titled “The Hong Kong Bond Market in 2022”. The bulletin can be accessed and downloaded from the HKMA website. resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230330-5/ [...]

Circular to licensed corporations – Data risk management

March 31, 2023

The SFC has issued a circular to guide licensed corporations (LCs) on data risk management practices. The circular emphasizes the need for robust risk governance frameworks and controls to mitigate the risk of operational disruptions, reputational or financial losses arising from inadequate data management practices. To ensure effective management of [...]

Circular to licensed corporations – Management of operational and remote booking risks of trading activities

March 31, 2023

The SFC has provided guidance to licensed corporations (LCs) on managing operational and remote booking risks that may arise from trading activities. The circular highlights the importance of having adequate risk governance, controls, and monitoring to identify and mitigate operational risks that can arise from internal processes, people, and systems. [...]

HKMA Half-Yearly Monetary and Financial Stability Report (March 2023 Issue)

March 30, 2023

The Hong Kong Monetary Authority (HKMA) has released its Half-Yearly Monetary and Financial Stability Report for March 2023, which provides detailed analyses of the global and local economy, monetary and financial conditions in Hong Kong, and the recent performance and risks of the local banking sector. The report is available [...]

Margin Requirements and Adjustment of Routine Intra-day Variation Margin Calls during Easter Holidays

March 28, 2023

The circular by HKEX regarding OTC Clearing announces the application of a Holiday Margin for Clearing Members. On April 6, 2023, a Holiday Margin of 19% of a Clearing Member’s Initial Margin requirement will be added to the End-of-Day Initial Margin call, which must be settled within one hour after [...]

Circular to intermediaries, responsible officers and licensed representatives – Waiver of annual licensing fees

March 28, 2023

The Securities and Futures Commission (SFC) has announced that it will waive the annual licensing fees of all intermediaries and licensed individuals from 1 April, 2023, to 31 March, 2024. The SFC will not issue any demands for payment for annual licensing fees during this period, but all other fees, [...]

SFC consults on proposed subsidiary legislation for implementing an uncertificated securities market in Hong Kong

March 28, 2023

The Securities and Futures Commission (SFC) has launched a consultation on the proposed subsidiary legislation to implement an uncertificated securities market (USM) in Hong Kong. The proposed subsidiary legislation includes two new sets of rules: the Securities and Futures (Uncertificated Securities Market) Rules, which outline the operational and technical matters [...]

1 form specified under section 23 of the Companies Ordinance (Chapter 622) is revised for use under the Ordinance with effect from 1 April 2023

With effect from 1 April 2023, the Application for Disclosure of Protected Information (By solicitor or foreign lawyer/certified public accountant (practising)/financial institution or DNFBP) (PS3) is revised under section 23 of the Companies Ordinance (Chapter 622). The revised information is related upon section 58(3) of the Ordinance. resource: https://www.cr.gov.hk/en/publications/docs/GN1578_e.pdf [...]

Compliance Bulletin (Issue No. 7) – (1) Block Trade Execution, (2) Large Open Position (“LOP”) Reporting Procedures for Derivatives Holiday Trading, and (3) Standard Penalties under HKEX Rules

The Exchange has released a Compliance Bulletin to promote transparency and a compliance culture in the marketplace. The bulletin covers common deficiencies and good practices observed in block trade execution, as well as reminders on LOP reporting requirements for Derivatives Holiday Trading and standard penalties under HKEX Rules. The goal [...]

New Specialist Technology Company Listing Rules

The Stock Exchange of Hong Kong, which is a subsidiary of HKEX, has announced that it will expand its listing framework for Specialist Technology Companies on March 31, 2023. Companies interested in listing under the new chapter can submit a formal application. This Specialist Technology chapter builds on the 2018 [...]

HKMA and BIS co-host international financial regulatory conference

Hong Kong’s recent international financial regulatory conference was organized by the HKMA and the BIS and brought together over 100 senior officials from more than 25 economies. The discussions centered around the latest banking regulatory and supervisory policies aimed at maintaining global financial stability. The conference marked Hong Kong’s return [...]

SFC concludes consultation on introduction of new regulated activity for depositaries of public funds

The Securities and Futures Commission has proposed legislative and code amendments to introduce a new regulatory regime, Type 13 regulated activity (RA 13), for depositaries of SFC-authorised collective investment schemes. The legislative amendments have been gazetted, and the new regime will come into effect on October 2, 2024. The SFC [...]

United Nations (Anti-Terrorism Measures) Ordinance/ United Nations Sanctions (ISIL and Al-Qaida) Regulation

March 24, 2023

On 17th March 2023, an updated list of terrorists and terrorist associates under the United Nations (Anti-Terrorism Measures) Ordinance has been published in the Gazette, and an updated list of individuals, groups, undertakings, and entities under the United Nations Sanctions (ISIL and Al-Qaida) Regulation has been published on the website [...]

Expiry of the Revenue (Reduction of Business Registration Fees and Branch Registration Fees) Order 2022

The current reduction of HK$2,000 in the prescribed business registration fee will expire on 1 April 2023, and all applications for company incorporation and registration must include the correct fee and levy from that date. The Companies Registry expects a surge in applications in March and may not be able [...]

The HKMA’s Response to the US Fed’s Rate Hike

The Federal Reserve raised the target range for the federal funds rate to 4.75-5%, resulting in the Hong Kong Monetary Authority (HKMA) adjusting the Base Rate upward to 5.25% in accordance with established mechanisms. The Fed’s decision was expected, but uncertainties remain on the interest rate path in the US, [...]

Adjustment of the Base Rate

The Hong Kong Monetary Authority (HKMA) has announced that the Base Rate has been set at 5.25% with immediate effect, based on a pre-set formula. The Base Rate is used to calculate the Discount Rates for repurchase transactions through the Discount Window. It is currently set at either 50 basis [...]

HKMA’s response to media enquiries

The Hong Kong Monetary Authority has clarified that the Financial Institutions (Resolution) Ordinance establishes the legal basis for the resolution regime in Hong Kong and sets out a clear order of creditor hierarchy. Holders of capital instruments, such as core equity capital, Additional Tier 1 (AT1) capital, and Tier 2 [...]

Court reaffirms SFC’s power of issuing restriction notices

The Court of First Instance has dismissed a judicial review application by Mr Chen Wencan and Ms Su Jiaqi against the Securities and Futures Commission (SFC) regarding restriction notices issued in an ongoing investigation into a suspected “ramp-and-dump” scheme. The applicants challenged the restriction notices issued by the SFC to [...]

SFC publishes quick reference guides for licensing requirements

The Securities and Futures Commission (SFC) has published quick reference guides to assist family offices, private equity firms, hedge fund managers, and overseas and Mainland industry professionals in better understanding the SFC’s licensing regime. The guides address frequently-asked questions about licensing topics and provide specific information about licensing carve-outs for [...]

Website alert : https://shaobank.com/ from HKMA

March 22, 2023

The Hong Kong Monetary Authority (HKMA) has issued a warning to the public in Hong Kong regarding Shao Bank. The HKMA has clarified that Shao Bank is not authorized to conduct banking business or take deposits in Hong Kong, and it has not been approved to establish a local representative [...]

UBS AG’s acquisition of Credit Suisse AG

March 20, 2023

The acquisition of Credit Suisse AG by UBS AG, supported by liquidity assistance from the Swiss National Bank (SNB), has been welcomed by the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA). Customers will continue to have access to Credit Suisse’s deposits and trading [...]

SFC issues guidance in light of new Mainland rules for overseas listings

March 20, 2023

Updates on Guidance Guidance of the upcoming Mainland regulations for overseas listing, effective from 31 March 2023, has been released by the Securities and Futures Commission (SFC). There are updates on the Frequently Asked Question (FAQ) on the “Disclosure of interests in PRC issuers” under Part XV of the Securities [...]

EXCHANGE PUBLISHES LISTING COMMITTEE REPORT 2022

March 15, 2023

The Exchange has released its Listing Committee Report for 2022, detailing its activities and policy agenda for 2023 and beyond. In 2022, the Listing Committee reviewed 126 listing applications and heard six reviews and 29 disciplinary cases. The year also saw ten “homecoming” listings by Greater China issuers, and five [...]

Practice Session for Northbound Trading Under Stock Connect to Support the Listing Regime Update of Shanghai Stock Exchange and Shenzhen Stock Exchange

March 15, 2023

Regarding updating the listing regulations of the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE), China Connect Exchange Participants (CCEPs) should be aware that SSE and SZSE will conduct a Practice Session (PS) on March 18, 2023 (Saturday). However, participation in the PS is not mandatory, and CCEPs who [...]

COMMENCEMENT OF END-TO-END (E2E) TEST FOR MIGRATION OF NORTHBOUND (NB) BROKER-TO-CLIENT ASSIGNED NUMBER (BCAN) FILE SUBMISSION AND DOWNLOAD FUNCTIONS TO ELECTRONIC COMMUNICATION PLATFORM (ECP)

March 14, 2023

The Exchange is arranging an End-to-End (E2E) test for the migration of Northbound Broker-to-Client Assigned Number (BCAN) file submission and download functions to the Electronic Communication Platform (ECP). This migration test will be conducted from 4 April 2023 to 28 April 2023. It is mandatory for all China Connect Exchange Participants [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism (1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action (2) FATF Statement on Jurisdictions under Increased Monitoring (3) Outcomes from the FATF Plenary, 22-24 February 2023

March 13, 2023

FATF Statement on High-Risk Jurisdictions subject to a Call for Action The Financial Action Task Force (FATF) has issued a statement on high-risk jurisdictions subject to a call for action, calling on all members to apply enhanced due diligence and countermeasures to protect the international financial system from money laundering, [...]

Joint consultation on changes to the OTC derivative Clearing Rules

March 13, 2023

The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have launched a joint consultation on proposed changes to the Clearing Rules for over-the-counter (OTC) derivatives, which would subject new types of transactions to clearing obligations. The proposed changes align with global interest rate benchmark reform, which aims [...]

United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2023

March 10, 2023

This regulation amends the United Nations Sanctions (Somalia) Regulation 2019 (Chapter 537, subsidiary legislation CG) to implement the resolution 2662 (2022) adopted by the United Nations Security Council (UNSC) on 17 November 2022, which made several decisions regarding Somalia. On 9 December 2022, the UNSC adopted resolution 2664 (2022), which [...]

SFC issues quarterly report

March 8, 2023

The latest Quarterly Report published by the Securities and Futures Commission (SFC) provides an overview between October and December 2022, when the business activity began to pick up. In addition, the Report offers a comprehensive summary of significant developments during the period, thereby providing valuable insights into the current state [...]

Revision of Liquidity Risk Multiplier in Initial Margin calculation

March 8, 2023

OTC Clear has recently drawn up its updated Liquidity Risk Multiplier following an intensive review and calibration process in accordance with Chapter 4 of the OTC Clearing Hong Kong Limited Clearing Procedures. This was based on the poll results from all Clearing Members in December 2022, which have been meticulously [...]

Balanced and effective AML/CFT measures in private banking

March 8, 2023

The Hong Kong Monetary Authority (HKMA) has been working alongside the banking sector to adopt effective anti-money laundering and counter-terrorist financing (AML/CFT) systems and controls to maintain market integrity. Despite the importance of such measures, ensuring that their implementation puts a manageable burden on the public or legitimate businesses when [...]

Circular to Licensed Corporations Updated Frequently Asked Questions (FAQs) on OTC Derivatives Clearing Requirement

March 6, 2023

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have jointly updated their FAQs for the Securities and Futures (OTC Derivative Transactions – Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules to include eight new Calculation Periods. The FAQ document also provides details [...]

Amendments to the Rules of the Exchange (the “Rules”)

March 6, 2023

Holders of Stock Exchange Trading Rights and Exchange Participants are advised to note that the new dual structure price limit, which is either 24 spreads or 3.5% from the reference price, will come into effect on Monday, 20 March 2023. As such, market makers must comply with the new dual structure [...]

Circular to Intermediaries Arrangements for the launch of the Hong Kong Investor Identification Regime

March 3, 2023

Relevant Regulated Intermediaries (RRIs)are reminded that the HKIDR will be launched on 20 March 2023. RRIs should also ensure that the HKIDR is updated with the required CID and BCAN information. This data must be collected, maintained and securely stored in accordance with the Code of Conduct and SEHK’s Rules. RRIs [...]

Routine Collateral Haircut Review and Adjustment

March 2, 2023

According to the OTC Clearing Hong Kong Limited Clearing Procedures Chapter 7, OTC Clear has reviewed the routine Collateral haircut and decided to adjust the haircut ratios on cash and non-cash Collateral, and it will be effective on 7 March 2023. This haircut shall be applied on a daily basis [...]

Change of Authentication for CCASS Terminal – (i) Reminder of email registration for CCASS users; (ii) Kick-off of email registration for CCASS Delegated Administrators

March 1, 2023

It is essential for all CCASS Participants (CPs), Delegated Administrators (DAs) and Designated Banks (DBs) to take note of the upcoming 2FA migration deadline. All user-designated email addresses must be registered through the Security Management Functions (DMS) of CCASS by April 28th 2023 (Friday). This is to ensure that all users can [...]

RULE UPDATE – CCASS OPERATIONAL PROCEDURES

February 28, 2023

The Amendments for the purpose of facilitating an enhancement to the trading calendar for Stock Connect will become effective on April 24, 2023. The definitions of the settlement day will be : “T+1” means the Settlement Day immediately following T-day; (b) When used in the Operational Procedures, the following expressions shall [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON RULE AMENDMENTS FOLLOWING MAINLAND CHINA REGULATION UPDATES AND OTHER PROPOSED RULE AMENDMENTS RELATING TO PRC ISSUERS

February 27, 2023

The Stock Exchange of Hong Kong Limited (the Exchange) published a consultation paper. The consultation paper outlines rule amendments that the Exchange plans to introduce regarding PRC issuers. The Exchange proposes that the Rules be amended to relax specific listing requirements for PRC issuers by removing references to obsolete Chinese [...]

Launch of Trading Calendar Enhancement for Stock Connect

February 27, 2023

The new adjustments to the trading calendar for Northbound and Southbound Stock Connect will become effective on April 24, 2023. The changes aim to resolve discrepancies between Stock Connect holidays and mainland Chinese or Hong Kong market holidays while increasing the total number of days available for Stock Connect trading. 1.Settlement [...]

SME Financing Guarantee Scheme Extends Application Period

February 23, 2023

The application period for the 80% Guarantee Product, 90% Guarantee Product and Special 100% Loan Guarantee of the SME Financing Guarantee Scheme are beneficial to Small and Medium Enterprises (SMEs) and will be extended to end-March 2024. This extension will provide more flexibility in financing arrangements ensuring they have access [...]

SEOCH Reserve Fund Variable Contributions

February 23, 2023

The newly recalculated Reserve Fund Requirement pursuant to SEOCH Rule 407 has resulted in a new market total Variable Contribution (“VC”) of HK$355 million, to be shared by all SEOCH Participants based on their daily average total margin requirement and net premium paid during the period from 22 November 2022 to [...]

SFC welcomes government budget measures

February 23, 2023

The SFC is particularly pleased with the measures proposed by the Financial Secretary to strengthen Hong Kong as a prime listing destination for international issuers, create an enabling environment for innovative green financing and expand the reach of our financial products markets. The new initiatives include the development of green [...]

SFC consults on proposals to regulate virtual asset trading platforms

February 21, 2023

The SFC launched a consultation on proposed requirements designed to protect investors and reduce the risks associated with virtual assets trading platforms. Under the new licensing regime, virtual asset trading platforms must demonstrate that they adhere to the same standards for investor protection as other securities and futures intermediaries regulated [...]

SFC and CSRC enter into an MoU on regulatory cooperation

February 20, 2023

Joint Announcement of the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission This Memorandum of Understanding (MoU) marks a significant milestone in the deepening of cross-border regulatory cooperation on matters concerning the listing of Mainland enterprises in Hong Kong. It seeks to improve coordination between the [...]

Circular to Licensed Corporations Engaged in Asset and Wealth Management Activities – Asset and Wealth Management Activities Survey 2022

February 20, 2023

The SFC is conducting a survey to collect information on asset and wealth management activities in Hong Kong for regulatory and market facilitation purposes. This survey aims to provide the SFC with valuable insights into the state of the asset and wealth management industry in Hong Kong. For those licensed corporations [...]

Leveraging Commercial Data Interchange for digitalisation of banking processes

February 17, 2023

The HKMA encourages institutions to make the best use of Commercial Data Interchange (CDI). CDI has the potential to revolutionize banking processes and create new opportunities for corporate customers. It provides a secure, efficient, cost-effective way of exchanging large amounts of data between banks and their corporate customers. With CDI, [...]

【Order No. 204】Measures for the Administration of Securities Brokerage Business

February 15, 2023

Background The regulation is applicable to Chinese residents and cross-border securities businesses. To run the securities business, it needs approval from the China Securities Regulatory Commission. The amendment of the regulatory policy is a warning to illegal cross-border securities businesses. Implementing these measures should increase investor protection and ensure more [...]

HONG KONG INVESTOR IDENTIFICATION REGIME (HKIDR) – PRACTICE SESSION (FOR BCAN TAGGING ONLY) ON 25 FEBRUARY 2023

February 13, 2023

HKEx provides a half-day practice session for Exchange Participants (Eps) on 25 February 2023. The Practice Session will simulate the trading environment of the HKIDR and provide EPs with an opportunity to confirm their BCAN tagging setup. During the practice session, all participants are encouraged to submit actual orders through the [...]

Monetary Authority Announces Countercyclical Capital Buffer Ratio for Hong Kong

February 9, 2023

The Monetary Authority announced that the countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1%. The CCyB will require banks to hold additional capital buffers when credit growth in the banking sector rises above a certain level. These extra buffers are intended to ensure that banks have [...]

Block Trade Participant Program for MSCI Asia and Emerging Market Index Futures Suite in 2023

February 7, 2023

The Hong Kong Futures Exchange Limited (the “Exchange”) announced the launch of a Block Trade Participant (“BTP”) Program for the MSCI Asia and Emerging Market Index Futures Suite (“MSCI Suite”) to support the liquidity development of MSCI Suite in 2023. The BTP Program is designed to facilitate the execution of [...]

Routine Collateral Haircut Review and Adjustment

February 3, 2023

According to the OTC Clearing Hong Kong Limited Clearing Procedures Section 2.6.2 of the Clearing House Procedures of HKFE Clearing Corporation Limited (HKCC) and Section 10.4.3.1 of the Operational Clearing Procedures of The SEHK Options Clearing House Limited (SEOCH), OTC Clear has reviewed the routine Collateral haircut and decided to [...]

Adjustment of the Base Rate

February 2, 2023

The Hong Kong Monetary Authority(HKMA) announced today that the Base Rate has been set at 5.00% with immediate effect. resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/02/20230202-3/ [...]

Notification of Routine Recalculation of Rates and FX Guarantee Fund

February 2, 2023

Rates and FX Contribution Determination Date. The recalculation of the routine Rates and FX Guarantee Fund was carried out in accordance with Section 6.7 of the OTC Clearing Hong Kong Limited Clearing Procedures. The recalculation incorporated all settled trades that have taken place during the GF Calculation Period from 2 [...]

HONG KONG INVESTOR IDENTIFICATION REGIME (HKIDR) – SUBMISSION OF BCAN-CID MAPPING DATA

February 1, 2023

Relevant Regulated Intermediaries are urged to submit the BCAN-CID Mapping File via the Electronic Communication Platform (ECP) before 20 March 2023 to facilitate a smooth transition into HKIDR and ensure their clients’ BCANs and Client Identification Data (CID) are registered in preparation for subsequent trading. In addition, HKEX also reminds that they [...]

Conclusion of discussion paper on crypto-assets and stablecoins

February 1, 2023

On 12 January 2022, the HKMA issued a discussion paper on crypto-assets and stablecoins and invited feedback from stakeholders who are come from the industry, public bodies, business and professional organisations, and individuals. By the end of 31 March 2022, the HKMA received total 58 submissions. Respondents are agreed the [...]

Government welcomes passage of Stamp Duty (Amendment) Bill 2022

January 31, 2023

The Stamp Duty (Amendment) Bill 2022 was passed on 18 January. It gives effect to the proposed exemption of stamp duty payable for some transactions regarding dual-counter stock made by market makers. The amended Ordinance was effective on 27 January 2023. The HKEX plans to formally launch the Dual Counter [...]

MIGRATION OF NORTHBOUND (NB) BROKER-TO-CLIENT ASSIGNED NUMBER (BCAN) FILE SUBMISSION AND DOWNLOAD FUNCTIONS TO ELECTRONIC COMMUNICATION PLATFORM 2.0 (ECP 2.0)

January 30, 2023

HKEX plans to implement the Migration of the platform. During the first phase, HKEX will provide an online platform for participants to submit and download NB BCAN files on ECP 2.0. The Migration will enable HKEX and its participants to benefit from a platform designed with the latest technology. The [...]

The Companies (Amendment) Ordinance 2023 (“the Amendment Ordinance”) will come into operation on 28 April 2023.

January 30, 2023

The Amendment Ordinance provides a modern framework for general meetings held virtually. It seeks to simplify the process of holding general meetings while ensuring that stakeholders’ interests are protected. The provisions under the Amendment Ordinance also enable companies to use new technologies better in conducting their general meetings. The members [...]

EXCHANGE PUBLISHES RESULTS OF REVIEW OF ISSUERS’ 2021 ANNUAL REPORTS

January 27, 2023

HKEX published the results of the review of issuers’ 2021 annual reports and made recommendations, including financial reporting and related controls and disclosure on material lending transactions. HKEX suggested that the directors of issuers should exercise diligence and care when assessing the appropriateness of management’s accounting estimates and the assumptions adopted [...]

BCBS issued FAQs to clarify how climate-related financial risks

January 26, 2023

The HKMA is looking to embed climate-related financial risks into its supervisory framework by taking cues from The Basel Committee on Banking Supervision (BCBS)’s recently issued FAQs. Authorized institutions should ensure their interpretations and applications of the existing Basel Framework incorporate these important considerations around potential environmental threats. Read more: [...]

Circular to licensed corporations Thematic review of Data Standards for Order Life Cycles

SFC found that although the SFC has repeatedly reminded In-Scope Brokers to implement system changes and make other arrangements needed for compliance with DS-OL, the thematic review noted that some In-Scope Brokers are still unprepared. For examples, some In-Scope Brokers only relied on information technology staff to establish the system [...]

Circular to Intermediaries Launch of the Hong Kong Investor Identification Regime

SFC has decided to launch the Hong Kong Investor Identification Regime (HKIDR) on 20 March 2023. Upon the launch of the HKIDR, RRIs are required to tag the relevant Broker-to-Client Assigned Number (BCAN) to every on-exchange order and off-exchange trade reportable to the Stock Exchange of Hong Kong Limited (SEHK). It will [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022

On 16 December 2022, the Securities and Futures Commission (SFC) announced an amendment that is the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 (Amendment Ordinance). There are three changes relating to customer due diligence (CDD) measures and which will be effective on 1 June 2023. The definition of a [...]

Circular to Intermediaries Updates on the Over-the-counter Securities Transactions Reporting Regime (OTCR)

The OTCR will be launched on 25 September 2023. To ensure the Relevant Regulated Intermediaries are well prepared to use the platform, the OTCR WebApp and OTCR SFTP submission channels on WINGS already released on 29 December 2022, and until 18 September 2023, which is one week before the launch [...]

Circular to Licensed Corporations and Associated Entities Revised Business and Risk Management Questionnaire

Circular to Licensed Corporations and Associated Entities Revised Business and Risk Management Questionnaire The Securities and Futures Commission (SFC) published a revised Business and Risk Management Questionnaire (BRMQ) last month for licensed corporations (LCs) and associated entities (AEs), which shall be used for financial years ending on or after 30 [...]

UAE And UK Agree to Collaborate in Energy Sector

January 17, 2023

The MoU aims to create a framework for the strengthening of cooperation on energy and renewable energy technology, in order to contribute to an economically and environmentally sustainable future. This includes regulating frameworks, incentives, smart grids and related technologies as well as the development of environmentally sustainable transportation and electric [...]

Taiwan’s Central Securities Depository Agency Plans to Launch eNotice to Reduce Paper Waste

January 16, 2023

The Taiwan Depository and Clearing Corporation (TDCC) announced a new function in its TDCC’s e-passbook app, which aims to reduce the use of paper and help the environment. The new function allows users to check their balances at 14 banks and enables company shareholders to receive any letters about cash [...]

Deloitte Launches Climate Tech Ecosystem to Connect Businesses with Solutions and Innovators

January 13, 2023

Deloitte announced the launch of GreenSpace Tech, aimed to help clients to identify, advance and deploy climate tech solutions to attain their sustainability and decarbonization goals. The new initiative will connect businesses with an ecosystem of climate technologies and innovators, helping them to navigate the rapidly changing climate tech landscape, [...]

Virtual assets: Hong Kong retail investors will only have access to ‘highly liquid’ products, SFC’s new boss Julia Leung says

January 12, 2023

The Asian Financial Forum 2023 opened yesterday. During the Forum, Julia Leung, the newly appointed CEO of the Securities and Futures Commission (SFC), announced that a consultation paper on virtual assets will be issued in this quarter and new licensing rules for virtual assets platforms will be effective in June. [...]

AFRC issues 2022 Interim Inspection Report and Report on Oversight of HKICPA regulatory functions

November 17, 2022

The Accounting and Financial Reporting Council (AFRC) today issues its: 2022 Interim Inspection Report on its inspections of public interest entity (PIE) auditors completed from 1 April 2022 to 30 September 2022; and 2022 Oversight Report on its oversight of the performance by the Hong Kong Institute of Certified PublicAccountants [...]

Exchange Publishes New Guidance Note on Cooperation and Updated Sanctions Statement

October 26, 2022

he Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Tuesday) published (1) a new Guidance Note on Cooperation, and (2) a revised Sanctions Statement. The Enforcement Policy Statement has been updated to include links to these documents. The new set of guidance [...]

SFC welcomes Chief Executive’s initiatives to enhance Hong Kong’s competitiveness

October 20, 2022

The Securities and Futures Commission (SFC) welcomes and fully supports the financial services initiatives in the Chief Executive’s Policy Address to strengthen Hong Kong’s competitiveness as an international financial centre. The SFC’s Chairman, Mr Tim Lui said: “The vision laid out by the Chief Executive to enhance Hong Kong’s position [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON NEW LISTING RULES FOR SPECIALIST TECHNOLOGY COMPANIES

October 20, 2022

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Wednesday) published a consultation paper seeking public feedback on proposals to expand Hong Kong’s existing listing regime to permit listings of Specialist Technology Companies1. HKEX Chief Executive Officer, Nicolas Aguzin, [...]

Circular on Operation of Bank accounts

July 7, 2021

[...]

Circular to intermediaries, responsible officers and licensed representatives Waiver of annual licensing fees

March 23, 2021

19 Mar 2021 The Securities and Futures Commission (SFC) will waive the annual licensing fees of all intermediaries and licensed individuals incurred during the period from 1 April 2021 to 31 March 2022. The SFC will not issue the usual demands for payment for annual licensing fees which would ordinarily [...]

[Regulatory Updates] Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism

March 10, 2021

(1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action Further to our circular issued on 9 November 2020 Note 1, this is to inform you that the Financial Action Task Force (“FATF”) in a statement issued on 25 February 2021 Note 2 advised its members to refer [...]

AML/CFT Regtech: Case Studies and Insights

January 21, 2021

21 Jan 2021 HKMA published today (21 January 2021) a report titled “AML/CFT Regtech: Case Studies and Insights” highlighting the opportunities that Regtech offers to transform the effectiveness and efficiency of Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) efforts, and sharing end-to-end approaches which worked in real-life examples. Following the [...]

HKEX STATEMENT ON STRUCTURED PRODUCTS

January 11, 2021

10 Jan 2021 Hong Kong Exchanges and Clearing Limited (HKEX) notes the decision to delist some structured products by some issuers, as a direct result of the US imposed sanctions. We do not believe this will have a material adverse impact on Hong Kong’s structured products market, the largest in [...]

SFC concludes consultation on customer due diligence requirements for open-ended fund companies

December 23, 2020

23 Dec 2020 SFC today released consultation conclusions on proposed customer due diligence requirements for open-ended fund companies (OFCs). The SFC will implement the proposal to require OFCs to appoint a responsible person to carry out anti-money laundering and counter financing of terrorism (AML/CFT) functions, in line with the Financial [...]

SFC licenses first virtual asset trading platform

December 16, 2020

16 Dec 2020 The Securities and Futures Commission (SFC) announces that it has granted the first licence to a virtual asset trading platform in Hong Kong. The platform will only serve professional investors under the close supervision of the SFC (Note 1) and will be subject to tailor-made requirements similar [...]

SFC statement on US sanctions

November 12, 2020

12 Nov 2020 The SFC is issuing this statement in response to enquiries following the latest announcement by the US government on the imposition of sanctions against additional individuals in Hong Kong and Mainland China. The SFC reiterates that in considering the implications of the sanctions, intermediaries are expected to [...]

Insurance Authority consults on the proposed Insurance (Special Purpose Business) Rules

September 7, 2020

4 Sep 2020 The Insurance Authority launched a six-week public consultation on the draft Insurance (Special Purpose Business) Rules (the “SPB Rules”) to tie in with the expected implementation of the new regulatory regime for the issuance of insurance-linked securities (“ILS”) in Hong Kong in 2021. ILS are sophisticated financial [...]

SFC concludes consultation on changes to the open-ended fund companies regime and further consults on customer due diligence requirements

September 4, 2020

2 Sep 2020 The SFC today released consultation conclusions on enhancements to the open-ended fund companies (OFC) regime , including the removal of all investment restrictions for private OFCs. The SFC will also allow licensed or registered securities brokers to act as custodians for private OFCs and introduce a statutory [...]

Exchange publishes consultation conclusion on codification of general waivers and principles relating to IPOs and listed issuers and minor rule amendments

September 1, 2020

28 Aug 2020 The Stock Exchange of Hong Kong Limited today published conclusions to its consultation on the Codification of General Waivers and Principles relating to IPOs and Listed Issuers and Minor Rule Amendments (Consultation Conclusions). The Exchange also published a new Guidance Letter on Experience and Qualification Requirements of [...]

Applications for new licences by insurance agents and their technical representatives, licensed insurance brokers and their technical representatives who are deemed licensees

25 August 2020 When the Insurance Authority took over the direct supervision and regulation of insurance intermediaries on 23 September 2019, all insurance agents, their responsible officers (“ROs”) and their technical representatives (“TRs”) registered with the Insurance Agents Registration Board immediately prior to that date, and all insurance broker companies, [...]

Hong Kong’s asset and wealth management business reports strong growth in 2019

25 August 2020 The SFC latest Asset and Wealth Management Activities Survey found that the assets under management (AUM) of the asset and wealth management business in Hong Kong increased by 20% year-on-year to $28,769 billion as at 31 December 2019. “Hong Kong’s asset and wealth management business posted strong [...]

Insurance Authority office reopens to the public from 24 August

22 August 2020 The IA today announced that its office will reopen to the public and resume normal public services starting 24 August 2020. To minimise social contact and the risk of virus infection, members of the public are encouraged to make use of the IA’s hotline and online services [...]

Exchange Publishes Chapter 37 Consultation Conclusion and Guidance on Disclosures in Listing Documents and Continuing obligations under Chapter 37

21 August 2020 The Exchange received 22 responses from a broad range of respondents. The feedback indicated strong support for the consultation proposals to enhance the listing regime for debt issues to professional investors only (Professional Debt Regime). The Exchange will implement the consultation proposals, with modifications, reflecting comments received. [...]

Latest arrangements for Companies Registry’s public services starting from 24 August

21 August 2020 Starting from 24 August, the Companies Registry will reopen the Public Search Centre on Monday, Wednesday and Friday while maintaining the limited counter services which it provides currently from Monday to Friday. Read more: https://www.cr.gov.hk/en/about/news/highlights.htm [...]

SFC issues quarterly report

August 21, 2020

20 August 2020 The SFC today published its latest Quarterly Report which summarises key developments from April to June 2020. To ensure that Hong Kong’s international financial markets function efficiently during the COVID-19 outbreak, the SFC stepped up its supervisory work and stress tests and allowed a measure of flexibility [...]

Insurance Authority consults on the proposed Insurance (Group Capital) Rules

August 21, 2020

19 Aug 2020 The Insurance Authority launched a six-week public consultation on the draft Insurance (Group Capital) Rules (the “Group Capital Rules”) to tie with the implementation of the new supervisory framework for multinational insurance groups tentatively in the first quarter of 2020. The main objective of the proposed Group [...]

Fees Reduction on Annual Return and e-Incorporation of Companies (with effect from 1 October 2020)

August 20, 2020

17 August 2020 With effect from 1 October 2020, the registration fees for annual returns (except for late delivery) charged by the Companies Registry will be waived for two years, and the fees payable for electronic incorporation of companies (including registration of non-Hong Kong companies) will also be reduced by [...]

Statement on Next Digital Limited

August 11, 2020

August 11 The SFC is issuing this statement in response to a large volume of enquiries it has received and the overall level of public interest in relation to the significant recent increases in the price and turnover in the shares of Next Digital Limited. In view of these exceptional [...]

iAM Smart Pilot Sandbox Programme

August 10 iAM Smart is one of the Government’s newest innovation initiatives to facilitate Hong Kong residents transacting online with the Government and commercial entities by enabling them to use a single unique electronic identity. Hong Kong residents can register and use iAM Smart free of charge and on a [...]

Response of the Insurance Authority to imposition of sanctions by the United States Government on individuals in Hong Kong

8 August 2020 The Insurance Authority (IA) is closely monitoring repercussions arising from unilateral sanctions recently imposed by the United States Government on a number of individuals in the Mainland and Hong Kong on 7 August 2020. An IA spokesperson said, “In assessing potential impact arising from the sanctions, market [...]

SFC statement on sanctions imposed by the US government

8 August 2020 On 7 August 2020, the US government announced the imposition of sanctions against individuals in Hong Kong and Mainland China. The SFC is monitoring closely the impact that the sanctions may have on the operation of intermediaries, the interests of investors and financial stability and orderliness of [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON REVIEW OF DISCIPLINARY POWERS AND SANCTIONS