Hong Kong

Market Infrastructure

HKMA to Require Banks to Report on Culture Reform

By Editors | 20/12/2018

First phase of bank culture self-assessments will cover about 30 institutions, including all major retail banks and selected foreign bank branches.

Securities / Derivatives

Licensed Corporations Should Carefully Review Internal Controls – SFC

By Editors | 20/12/2018

The SFC has reviewed brokers’ internal control systems and found they are not adequately protecting client assets, supervising their staff or incentivising good compliance culture.

Securities / Derivatives

China Exempts Mainland Investors from Tax on Hong Kong Funds

By Editors | 19/12/2018

Chinese regulators have applied a one year income tax exemption for mainland investors buying and selling Hong Kong funds through the mutual recognition of funds scheme.

Capital / Liquidity

HKMA Asks Local Banks to Study Latest Pillar 3 Requirements

By Editors | 19/12/2018

The HKMA advises banks to start considering the system changes necessary to implement the Basel Committee’s latest Pillar 3 disclosure requirements.

Capital / Liquidity

HKMA Issues Revised SPM for Local IRRBB Implementation

By Editors | 17/12/2018

Authorised institutions should be ready to measure and report IRRBB exposures using the new standardised framework by 1 July 2019.

Market Infrastructure

Hong Kong Faces Skills Shortage in Fintech, Cybersecurity – Survey

By Editors | 17/12/2018

Fintech and cybersecurity were viewed as the areas with the largest skills shortage, followed by a skills gap in regulatory and compliance knowledge.

AML / KYC

Stock Connect to Introduce Investor ID Regime for Southbound Trading

By Editors | 17/12/2018

Launched on 26 September for northbound trading, the investor identification regime will be introduced for southbound trading by the end of Q1 2019.

Market Infrastructure

Plans to Launch HK-China ETF Connect Put on Hold – Report

By Editors | 14/12/2018

Trading and settlement issues will require “a very long period of discussion” to resolve, according to SFC chairman Tim Lui, adding that the focus will shift to enabling ETF cross listings.

Securities / Derivatives

Hong Kong to Extend Profits Tax Exemption to Local PE, Hedge Funds

By Editors | 14/12/2018

Under the existing framework, non-retail funds domiciled in Hong Kong are not exempt from profits tax, unlike their offshore-domiciled counterparts.