Securities and Futures Commission

    Enforcement

    Hong Kong Exchange Censures Ding Yi Feng Executives

    By Editors | 23/04/2020

    Three former non-executive directors of China Ding Yi Feng were censured for breaching the listing rules and disclosure obligations.

    AML / KYC

    SFC Fines BOCOM International Securities for “Serious” Breaches

    By Editors | 20/04/2020

    The brokerage did not have effective controls to identify third party deposits, and “extensive deficiencies” were found in its handling of margin lending and margin calls.

    Securities / Derivatives

    SFC Seeks Certainty on ETF Market Making Continuity

    By Editors | 18/04/2020

    ETF management companies should procure more than one market maker, or secure arrangements for alternative market makers to quickly step in if there is a disruption.

    Securities / Derivatives

    SFC Raises Concerns with Leveraged Foreign Exchange Trading

    By Editors | 10/04/2020

    Brokers reported that more than 60% of clients who engage in leveraged foreign exchange trading made net trading losses, some in excess of HK$1mn.

    Securities / Derivatives

    Hong Kong to Implement Paperless Securities Market from 2022

    By Editors | 08/04/2020

    Submissions to a January 2019 consultation indicate strong support for the implementation of an uncertificated securities market in Hong Kong.

    Enforcement

    SFC Fines HSBC Units for Cash Management Failures at Funds

    By Editors | 07/04/2020

    The identified concerns have all since been rectified, and the two units have agreed to pay over $430,000 into the affected funds, on top of a $451,000 fine from the SFC.

    AML / KYC

    Global AML, Sanctions Fines Topped $8bn in 2019: Fenergo

    By Editors | 02/04/2020

    Last year was the second-biggest year on record for fines against financial institutions for AML and sanctions violations, according to a new report from Fenergo.

    Securities / Derivatives

    SFC, Stock Exchange Issue Guidance on Holding General Meetings

    By Editors | 01/04/2020

    Listed issuers should consider adjourning or delaying their general meetings until at least after 11 April, when the prohibition on group gatherings has ended.

    Enforcement

    SFC Bans Former China Rise CEO for Naked Short Selling

    By Editors | 01/04/2020

    The ex-CEO was banned for 28 months for placing – and concealing – uncovered short selling orders through his personal account and a client’s discretionary account in 2014.

    Securities / Derivatives

    SFC Extends Deadlines on Three Regulatory Initiatives

    By Editors | 31/03/2020

    The deferred initiatives relate to new requirements on external data storage, client asset protection, and brokers’ systems for maintaining order life cycle data.

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