Structural Regulation

ASX Calls for Reforms Around Class Actions, Litigation Funding

22/06/2020

The benefit of securities class actions may disproportionately benefit litigation funders rather than plaintiffs in those proceedings, with the costs falling on the shareholders, ASX says.

Structural Regulation

China to Ease Rules on Foreign Strategic Investment in Listed Companies

22/06/2020

The revisions lower foreign investor asset requirements, reduce the lock-up period from three years to 12 months, and expands investment channels to include IPOs and tender offers.

Emerging Prudential Risks

Bank Indonesia Cuts Rates, Pledges More Bond-Buying

22/06/2020

Bank Indonesia abandoned the practice of quantitative easing in 1999 to ensure fiscal discipline in the aftermath of the Asian financial crisis.

Capital Adequacy

China: Local Govts to Replenish Capital at Smaller, Midsize Banks

22/06/2020

Local governments will be allowed to buy ¥200bn in capital replenishment tools issued by small and midsize banks, with a fixed term, detailed repayment plan, and assurances on corporate governance and asset quality.

Structural Regulation

CBIRC Allows AIA to Incorporate as Wholly-owned Subsidiary in China

22/06/2020

The new subsidiary will become the first wholly foreign-owned life insurance company approved for incorporation in mainland China.

Anti-Money Laundering

SFC Fines Guotai Junan Securities for AML and Other Breaches

22/06/2020

Guotai Junan Securities was fined for regulatory breaches in connection with AML, third party fund transfers, placing activities, and wash trade detection and reporting.

Supervision & Enforcement

Australia: Banks Work Towards Swift Resolution of Advice Failures

22/06/2020

Larger than required remediation payments could be fast-tracked for all clients by forgoing the years of work needed to locate advice files and calculate individual payments.

Capital Adequacy

Taiwan Banks Have Stable Risk-bearing Capacity, Adequate Capital: FSC

22/06/2020

Taiwan’s FSC says only a few banks did not pass their stress tests, but they would have if new capital raised this year was taken into account.

Trading & Investment

SSE Revamps Index Methodology to Better Reflect Market Performance

22/06/2020

Index stocks with risk warnings will be removed, CDRs and STAR Market stocks will be included, and the timeframe for including newly-listed stocks will be extended.