In our Client Alert dated 26 March 2021, we reported that the Government had released a draft Technical Circular on the implementation of the spirit of Security of Payment Legislation (SOPL) in public works contracts. The draft Circular was provided to stakeholders to comment and the Circular aimed at implementing certain measures of SOPL on public works contracts, term contracts and related subcontracts tendered after July/August 2021 ...
On 22 May 2020, the Securities and Futures Commission (SFC) issued a supplemental circular introducing changes to the scope of leveraged and inverse products (L&I Products) which the SFC would accept for authorization for public offering in Hong Kong ...
Chapter 10.2 of the SFC's Code on Unit Trusts and Mutual Funds (Code) requires that pricing errors for SFC authorised funds should be corrected as soon as possible and all necessary action should be taken to avoid errors occurring in the future. If the pricing error results in an incorrect price of 0 ...
The Securities and Futures Commission (SFC) issued a circular on 17 April 2020 (Circular) to managers and market makers of SFC authorised exchange traded funds (ETFs) reminding them of their responsibility to manage ETFs in the best interests of investors. The circular was prompted by the suspension of market making activities by the sole market maker of an ETF due to the quarantining of some of its trading staff ...
On 29 October 2020, Hong Kong’s Securities and Futures Commission (SFC) published its Consultation Paper on the Management and Disclosure of Climate-related Risks by Fund Managers (Consultation) which proposes new mandatory requirements for Hong Kong fund managers of collective investment schemes around climate-related risks ...
On 4 December 2020, Hong Kong’s Securities and Futures Commission (SFC) published its Consultation on proposals to (1) implement an investor identification regime at trading level for the securities market in Hong Kong and (2) introduce an over-the-counter securities transactions reporting regime for shares listed on the Stock Exchange of Hong Kong (Consultation). The Consultation paper is available here ...
On 8 February 2021, The Securities and Futures Commission (SFC) published a consultation paper on (i) the proposed code of conduct on bookbuilding and placing activities in equity capital market (ECM) and debt capital market (DCM) transactions (Proposed Code) and (ii) the “sponsor coupling” proposal (together, the Proposals) ...
In a recent enforcement action, the Securities and Futures Commission (SFC) issued a public reprimand and a HK$19.6 million fine to a licensed corporation (LC) for a range of breaches and internal control shortcomings, including failures relating to: 1. AML 2. Authorisation for transactions 3. Record keeping 4. Handling of client complaints 5. Telephone recording 6. Margin lending 7 ...
On 23 December 2020, the Securities and Futures Commission (SFC) updated its Frequently Asked Questions (FAQs) relating to Open-ended Fund Companies (OFCs) on matters related to custodians and the custody of assets and records of the OFC. Appointment of multiple custodians Under the Securities and Futures Ordinance, all scheme property of an OFC must be entrusted to a custodian of the OFC for safekeeping ...
Hong Kong’s Securities and Futures Commission (SFC) has reprimanded and fined an intermediary $6.4 million for control failures over a two year period in solicitation and recommendation of bonds to clients for execution on a third party platform ...
Hong Kong’s Securities and Futures Commission (SFC) revised the Code on Real Estate Investment Trusts (REITs) after a two-month consultation on the proposed amendments. The revised Code on REITs can be viewed here ...
On 10 December 2020, the Securities and Futures Commission (SFC) issued Frequently Asked Questions (FAQs) providing guidance to licensed corporations(LCs) on how to meet the obligations in its 31 October 2019 circular on use of external electronic data storage providers (EDSP). The SFC also made consequential amendments to its Frequently Asked Questions on the premises for business and record keeping ...
On 18 June 2021, the Securities and Futures Commission (SFC) issued its Consultation Conclusions on Proposed Enhancements to the Competency Framework for Intermediaries and Individual Practitioners (Conclusions) ...
On 11 December 2020, the Securities and Futures Commission (SFC) released its consultation paper regarding proposals to update the entry requirements for persons seeking to be licensed to engage in regulated activities, and ongoing competency standards for intermediaries and individual practitioners (e.g. responsible officers (ROs), licensed representatives (LRs), executive officers (EOs) and relevant individuals (ReIs)) ...
On 29 June 2021, the Securities and Futures Commission (SFC) published a revised circular (Revised Circular) to provide guidance to managers on enhanced disclosures for authorised funds which incorporate environmental, social and governance (ESG) or climate change or green or sustainability factors (together, ESG factors) as a key investment focus (ESG funds) ...
Hong Kong’s Mandatory Provident Fund Schemes Authority (MPFA) revised the Guidelines on Approved Exchanges (Guidelines III.4) with effect from 13 November 2020, adding Shanghai Stock Exchange, Shenzhen Stock Exchange, Indonesia Stock Exchange and Warsaw Stock Exchange (Additional Exchanges) to the list of approved stock exchanges for the purpose of the Mandatory Provident Fund Schemes (General) Regulation (Regulation) ...
A recent Securities and Futures Commission (SFC) disciplinary action is a reminder of the need for managers to ensure there are systems and procedures in place to meet the short position reporting obligations of the funds that they manage. The SFC reprimanded and fined an asset manager HK$3 ...
On 31 August 2007, the Monetary Authority of Singapore (MAS) issued a circular which removed the so-called 80/20 rule. The 80/20 rule was one of the conditions for a non-resident fund to qualify for tax exemption under section 13C of the Singapore Income Tax Act ...
At its Singapore 2006 AGM, ISDA announced the publication of a new set of definitions – the ISDA 2006 Fund Derivative Definitions (Fund Definitions). The Fund Definitions are intended to provide basis terminology for use in confirmations of derivatives transactions linked to interests in various types of pooled investment vehicles, such as hedge funds and mutual funds, for which a liquid secondary market may not exist ...
In Perpetual Wealth (Hong Kong) Ltd v Be Solutions Company Ltd, HCA 1905/2018, the Court emphasised that for construction cases, the starting point for expert directions is that single joint expert (SJE) evidence is preferred, as it assists to narrow the scope of the issues in dispute, shortens the trial, facilitates settlement of issues and often leads to global settlement of the action ...
Despite the restrictions on activity affecting Hong Kong since the beginning of the year, there have been several enforcement cases reported which can provide some useful lessons or reminders for intermediaries. Approvals involve due diligence A requirement for approval for a transaction indicates that the transaction is unusual or involves material risk ...
In general, individuals admitted into Hong Kong under various types of visa may apply for extension of stay within four weeks before the date of expiry, and they must be physically present in Hong Kong at the time of submitting the application and the collection of visa label upon approval. Due to the ongoing pandemic across the globe, this restriction has brought extra hurdles to a lot of applicants who are employees of companies and/or members of families ...
Following certain onsite inspections, the Hong Kong Securities and Futures Commission (SFC) issued a Circular in October 2008 setting out various standards of conduct and control procedures that the SFC views as being "generally expected" of a Hong Kong-licensed hedge fund manager (HKHFM) ...
The Premier of the State Council Li Keqiang chaired an executive meeting on 7 April 2020 which decided to adopt a series of tax related measures to cope with the negative impact caused by the COVID-19 pandemic and to stabilise the domestic economic environment. The measures mainly include the following: 1 ...
On 29 July 2020, the State Council held an executive meeting (Meeting) which centred on stabilising the main body of foreign trade, the industrial chain and the supply chain, and establishing four policies to stabilise foreign trade and foreign investment (Four Policies) ...
