Securities and Futures Commission

Capital / Liquidity

SFC Fines Potomac Capital for Breaching Financial Resources Rules

By Editors | 08/06/2020

Potomac misinterpreted the financial resources rules and incorrectly including aged fees receivables as liquid assets, leading to an overstatement of liquid capital.

Securities / Derivatives

HKEX Continues to Bolster Derivatives Product Ecosystem

By Manesh Samtani | 02/06/2020

HKEX is launching silver futures and four new rupee futures contract months, on top of new derivative products linked to MSCI indices and a new set of exchange-traded products.

Enforcement

SFC Bans Guosen Fund Manager for Violating Staff Trading Policies

By Editors | 29/05/2020

The fund manager concealed his beneficial interests, direct control and trading activities in securities accounts held at an external brokerage.

Securities / Derivatives

SFC to Allow Leveraged, Inverse ETFs Tracking Mainland Indices

By Editors | 24/05/2020

The SFC is prepared to initially only accept ‘swap-based’ L&I products tracking Mainland equity indices, with a leverage factor up to 2x, or negative 1x for inverse products.

Securities / Derivatives

Hong Kong: Securities Industry Subsidies to be Available from 25 May

By Editors | 20/05/2020

A cash subsidy of HK$50,000 will be available for securities firms ranked 15th onwards by market turnover, and HKD 2,000 for each individual licensed by the SFC.

Enforcement

SFC Fines Convoy Asset Management Over Bond Sales

By Editors | 20/05/2020

The firm failed to comply with product due diligence requirements, client suitability obligations and specific guidance on the sale of fixed income products.

Securities / Derivatives

HKMA, SFC to Jointly Review OTC Product Pricing at Intermediaries

By Manesh Samtani | 19/05/2020

The thematic review will assess the spreads intermediaries charge for non-exchange traded investment products such as bonds and structured products.

AML / KYC

SFC Reprimands, Fines Southwest Securities for AML/CFT Failures

By Editors | 18/05/2020

The brokerage failed to implement adequate and effective policies and procedures to mitigate AML/CFT risks associated with third party deposits.

SFC to Get Another Three Year Term from CEO Ashley Alder

By Editors | 18/05/2020

Alder was expected to step down in September, but has decided to stay on to ensure regulatory clarity through the current period of “exceptional stress”.