Revo Digital Family Office (REVO DFO) has received regulatory approval to offer regulated investment advice and portfolio management services in Hong Kong, and will integrate digital asset services into traditional portfolio mandates. Revo FDO has obtained a Type 4 licence, allowing it to provide investment advice and research to clients regarding securities, and a Type 9 licence, allowing it to […]

The post Raffles Family Office’s crypto MFO gets green light in Hong Kong appeared first on Asian Private Banker.

Shanghai Pudong Development Bank (SPD Bank) has launched a global wealth management platform in Hong Kong as part of its internationalisation strategy, providing cross-border investment, asset allocation and wealth succession services. Under the joint efforts of SPD Bank Hong Kong, SPDB International, and Shanghai Trust, the SPDB Global Wealth Management Platform focuses on “family wealth, family lineage, and family business,” […]

The post SPD Bank launches wealth management platform in Hong Kong appeared first on Asian Private Banker.

Hong Kong’s private wealth industry is bouncing back to near pre-pandemic levels, with assets under management (AUM) and net fund inflows both experiencing double-digit growth in 2024. This marks a reversal of the sluggish performance in recent years, and Asian Private Banker has taken a deep dive into the trends driving this resurgence. According to the Securities and Futures Commission’s […]

The post Inside what’s driving Hong Kong’s wealth AUM rebound appeared first on Asian Private Banker.

An enhanced Wealth Management Connect (WMC) scheme between Hong Kong and the rest of the Greater Bay Area (GBA) will boast bigger personal investment quotas, more products, and new participants when it is rolled out in late February. However, much of the hyped scheme’s aggregate quota remains unused. Hong Kong’s Securities and Futures Commission (SFC) issued new guidance on Wednesday […]

The post Wealth Management Connect 2.0: Bigger quotas, more products appeared first on Asian Private Banker.

Bigger quotas, more products and wider scope: these are some of the benefits that private banks and fund manufacturers after regulators in the Greater Bay Area (GBA) unveiled proposals to upgrade the Wealth Management Connect (WMC) scheme. The linkage, which was first launched in October 2021, currently has 19 participating banks and allows eligible investors in mainland China, Hong Kong […]

The post Bottom Line: What to expect from Wealth Management Connect 2.0 appeared first on Asian Private Banker.

Hong Kong’s financial regulators have introduced a new ‘streamlined approach’ for assessing suitability requirements for sophisticated professional investors (SPIs). The new guidance reflects a “balanced” approach, a compliance expert has told Asian Private Banker. In addition, Hong Kong’s regulators are looking at allowing equity funds to be sold through the Wealth Connect, along with other enhancements. The HKMA and SFC […]

The post Regulators unveil “streamlined approach” for wealth investors. Here’s what that means appeared first on Asian Private Banker.

Asia-Pacific’s private banking industry was stunned on Monday morning, when it woke to discover that UBS and Credit Suisse had announced they would be merging in a CHF3 billion (US$3.24 billion) hastily-arranged marriage brokered by the Swiss government. The deal is set to have significant ramifications for the region’s private banking industry, which Asian Private Banker will be closely following […]

The post UBS/Credit Suisse deal: HK and SG regulators react appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has announced that its CEO will depart to take up the role of head of the UK’s financial regulator. The Hong Kong regulator said on Friday that Ashley Alder, who has been at the helm since October 2011, will become the chair of the UK’s Financial Conduct Authority in January 2023. Alder’s […]

The post Hong Kong SFC head to depart for UK regulator appeared first on Asian Private Banker.

Equity-linked structured products in the internet and technology sectors accounted for a plurality of the total transaction amount of non-exchange traded investment products in 2020, mirroring a spike in client interest in equity derivatives during a boom year for stock markets. The findings of a joint survey conducted by the Hong Kong Securities and Futures Commission (SFC) and the Hong […]

The post Equity-linked structured products in internet and tech dominated OTC sales in 2020: SFC-HKMA report appeared first on Asian Private Banker.

Hong Kong’s Securities and Futures Commission (SFC) has made public the conclusion of the consultation sought on the proposals to introduce investor identification for securities trading and a reporting regime for over-the-counter (OTC) securities transactions. The city’s financial services watchdog said respondents of the consultation “broadly agreed with the proposals” and that it has decided to proceed with the implementation […]

The post Hong Kong’s SFC to introduce investor identification and OTC reporting appeared first on Asian Private Banker.

The AUM of Hong Kong’s private banking (PB) and private wealth management (WM) business grew by 25% to HK$11.3 trillion (US$1.5 trillion), highlighting the city’s top position as Asia’s WM hub. A survey published on Thursday by the Hong Kong Securities and Futures Commission (SFC) shows AUM at the city’s asset and WM businesses grew 21% YoY to HK$34.93 trillion […]

The post Hong Kong PB and private WM business AUM grew by 25% in 2020: SFC survey appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has fined Deutsche Securities Asia Limited (DSAL) HK$2.45 million (US$315,000) for issuing incorrect statements to its prime brokerage clients and delaying reporting its failures to the SFC, according to the regulator’s website. DSAL is licensed to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 6 […]

The post SFC fines Deutsche Securities Asia HK$2.45 million for incorrect prime brokerage client statements appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) and Thailand’s Securities and Exchange Commission (SEC) have announced the launch of their Mutual Recognition of Funds (MRF) scheme. The MRF scheme entered into effect on Wednesday, and comes five months after the two regulators signed a Memorandum of Understanding (MoU) to allow eligible Hong Kong and Thai public funds to be […]

The post Hong Kong and Thailand mutually recognise funds appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has launched a grant scheme to entice qualified open-ended fund companies (OFCs) and real estate investment trusts (REITs) to set up in Hong Kong. The SFC announced on Monday that the Hong Kong government is offering a grant of up to HK$1 million per OFC, covering 70% of eligible expenses paid to […]

The post SFC grant scheme entices OFCs and REITs to set up in Hong Kong appeared first on Asian Private Banker.

This month: FINMA questioned Credit Suisse for “months” about Greensill risk exposure; PBoC ready for WMC launch; SFC curbs ramp-and-dump scams on social media; FINMA lifts Julius Baer acquisition ban FINMA questioned Credit Suisse for “months” about Greensill risk exposure The four Greensill Capital-backed supply chain finance funds (SCFFs) were terminated by Credit Suisse on 4 March in order to […]

The post March Regulatory Round-up appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has issued over 30 restriction notices against at least 28 brokerages in less than two months, showing its determination to eliminate social media ramp-and-dump schemes in the city. The social media-induced ramp-and-dump schemes were brought to light by the market volatility driven by online discussions about US stocks including GameStop, AMC and […]

The post Hong Kong SFC issues over 30 restriction notices to deter social media ramp-and-dump schemes appeared first on Asian Private Banker.

2021 started off with private banks anticipating the launch of the Wealth Management Connect scheme in the Greater Bay Area. Private banks are eager to expand their business operations as China opens up its financial markets. In early February, financial regulators from mainland China, Hong Kong and Macau inked a memorandum of understanding (MoU) establishing the cooperation framework and liaison […]

The post Jan/Feb Regulatory Round-up: GBA Wealth Management Connect; warning against ramp-and-dump scams; 2021 priorities appeared first on Asian Private Banker.

In Hong Kong’s first collaboration between an SFC-approved digital asset manager and an SFC-licensed brokerage and exchange, BC Technology Group announced on Wednesday that it has signed an MOU with Venture Smart Asia Limited (VSAL) to provide brokerage and related services for VSAL’s Hong Kong- regulated digital asset funds DigiTrackers Bitcoin and Arrano Alpha Fund. BC Technology Group is a […]

The post OSL to provide brokerage services for Venture Smart’s digital asset funds appeared first on Asian Private Banker.

Regulators in Hong Kong and Singapore have each issued a notice in the wake of the recent market volatility caused by social media hyping up stock of GameStop, AMC and BlackBerry. The Hong Kong Securities and Future Commission (SFC) cautions investors on trading volatility, while the Monetary Authority of Singapore (MAS) warns against the risk related to trading incited by […]

The post SFC reminds intermediaries to act in the best interests of clients when trading highly volatile securities appeared first on Asian Private Banker.

Authorities in the Greater Bay Area (GBA) have inked a memorandum of understanding (MoU), establishing the cooperation framework and liaison mechanism for the Wealth Management Connect scheme. Four mainland Chinese regulators — the People’s Bank of China (PBoC), the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC), and the State Administration of Foreign Exchange (SAFE) […]

The post Regulators sign MoU for Greater Bay Area Wealth Connect appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) and Thailand’s Securities and Exchange Commission (SEC) have entered an Mutual Recognition of Funds (MRF) agreement. The SFC signed a Memorandum of Understanding (MoU) with SEC on Wednesday. Both regulators will endeavour to expedite the approval process of a local feeder fund investing in an MRF-eligible Thai or Hong Kong master fund […]

The post Hong Kong, Thailand sign Mutual Recognition of Funds agreement appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has issued its first licence for a virtual asset trading platform in Hong Kong to OSL, a member of the Hong Kong-listed BC Technology Group. The platform is subject to tailor-made regulatory requirements, similar to the existing guidance for securities brokers and automated trading venues. The virtual asset trading platform is licensed […]

The post OSL obtains first SFC licence for virtual asset trading platform appeared first on Asian Private Banker.

November began with the suspension of Ant Group’s dual listing in Shanghai and Hong Kong. At US$37 billion, it would have been the world’s largest IPO. A day earlier, Beijing had proposed rules that Chinese licensed microlenders operating online must front at least 30% of any loan they make along with financial institutions. Opinions have been divided about the issue. […]

The post November Regulatory Round-up: Ant IPO suspension may signal private sector retreat; SFC reassures FIs on US sanctions vs. NSL; MAS 2021 enforcement focus may shift to PB appeared first on Asian Private Banker.

The Asia Securities Industry & Financial Markets Association (ASIFMA), an independent regional trade association, has issued a report illustrating operational challenges to capital market activities in Hong Kong and Singapore as a result of working-from-home (WFH) arrangements. Jointly written by Latham & Watkins, PwC Hong Kong, and ASIFMA on behalf of its members, the report outlines four key themes: the […]

The post Lack of electronic solutions hinders HK and SG capital market activities: ASIFMA report appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) on Wednesday banned a former private banking relationship manager at Standard Chartered Bank and Bank of Singapore for 21 months — from 25 November 2020 to 24 August 2022. The disciplinary action from the Hong Kong industry body follows an HKMA referral, which suggests that Pang Hon Pan had violated Standard Chartered […]

The post SFC bans former BoS and StanChart RM for 21 months appeared first on Asian Private Banker.

In September, Asian Private Banker interviewed a financial crime specialist on how the FinCEN leak showed us that the US financial intelligence unit is swamped by an ever-growing pile of transaction reports; a Singapore regulatory lawyer discussed the possible impact of the new individual accountability guidelines on the private banking industry; and, we reported on the Securities and Futures Commission’s […]

The post September Regulatory Round-up: FinCEN leak; MAS’s individual accountability regime; removal of private OFC fund restrictions appeared first on Asian Private Banker.

In view of the increasing use of online trading platforms, the Hong Kong Securities and Futures Commission (SFC) is broadening compliant channels for intermediaries to collect client consent in distributing trade documents online. The regulator issued a circular to intermediaries on Tuesday regarding the provision of trade documents to clients by access through intermediaries’ websites (“Access Service”). The circular updates […]

The post SFC facilitates use by intermediaries of online trading platforms appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has launched a consultation on proposals to amend its anti-money laundering and counter-financing of terrorism (AML/CFT) guidelines to better align with recommendations made by the Financial Action Task Force (FATF). The consultation paper proposes amendments to two existing guidelines issued in November 2018: the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For […]

The post SFC proposes risk-based AML rules to align with FATF comments appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has fined Bank of East Asia HK$4.2 million for regulatory breaches. The Hong Kong regulator published an enforcement notice on Thursday regarding the fine against The Bank of East Asia, Limited (BEA). From 1 April 2003 to 15 December 2016, the Hong Kong lender had failed to segregate its client securities from […]

The post Hong Kong SFC fines BEA HK$4.2 million for regulatory breaches appeared first on Asian Private Banker.

Changes to the open-ended fund companies (OFC) scheme have been implemented, the Hong Kong Securities and Futures Commission (SFC) announced last Friday. First implemented in Hong Kong in July 2018, the OFC scheme enables investment funds to be set up in Hong Kong in the form of a company. It acts as an alternative to the unit trust structure. After […]

The post SFC implements changes to the open-ended fund regime appeared first on Asian Private Banker.

Mainland China has made it easier for foreign institutions to invest in the domestic bond market and has reached an agreement with Hong Kong for the cross-listing of ETFs. Hong Kong has finally enacted its Limited Partnership Fund regime. China eases access by foreign investors to bond markets The National Interbank Funding Center (NIFC), a sub-institution affiliated to the People’s Bank of […]

The post August Regulatory Round-up: China opens bond market to foreigners; HK launches Limited Partnership Fund regime; HK security law may clash with US sanctions appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has removed all investment restrictions for private open-ended fund companies (OFCs) to level the playing field for the fund structure, according to its consultation conclusions published on Wednesday. The SFC launched the consultation on proposed enhancements to the OFC regime in December 2019 to encourage more private funds to set up in Hong […]

The post SFC removes all investment restrictions for private OFC funds appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has banned former UBS client advisor Masy Lo Mee Chi from the industry for eight months on the grounds of dishonest conduct, according to an announcement published on Monday. The SFC decided to sanction Lo for her attempt in July 2017 to mislead the trustee into believing that the trust settlor had […]

The post SFC bans ex-UBS client advisor for eight months appeared first on Asian Private Banker.

Two ETF cross-listings have been approved by both regulators in Hong Kong and mainland China, replacing an earlier attempt to develop “ETF connect” which was put on hold due to technical issues. The market had been anticipating the launch of Hong Kong’s ETF connect in 2020 after Julia Leung, deputy chief executive of the Securities and Futures Commission (SFC), signalled […]

The post SFC, CSRC approve two ETFs cross-listings appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has issued a life-long ban to Ts’o Jing, a former relationship manager at China Citic Bank International Limited (CITIC). The regulator made the enforcement announcement on Wednesday. The ban was imposed after Ts’o had been convicted in January 2019 of seven counts of fraud in the Eastern Magistrates’ Court in Hong Kong. […]

The post SFC bans ex-CITIC RM for life appeared first on Asian Private Banker.

Assets under management at Hong Kong’s private banks (PBs) and private wealth managers (WMs) in 2019 grew 19% YoY to HK$9,058 billion, notwithstanding social unrest in Hong Kong, challenging global markets and Sino-US tensions. This is a key finding of the annual Asset and Wealth Management Activities Survey by the Hong Kong Securities and Futures Commission (SFC), released on Tuesday. Hong […]

The post AUM of Hong Kong PBs, private WMs up 19% in 2019, topping HK$9 trillion: SFC appeared first on Asian Private Banker.

Hong Kong regulators in July simplified arrangements for the sale and distribution of certain bond types and worked to reassure the market that the new National Security Law (NSL) won’t have a negative impact. Recognising the need to address the emerging risks and challenges in the financial sector, the Monetary Authority of Singapore (MAS) issued a paper proposing an omnibus regulatory approach. Business […]

The post July Regulatory Round-up: HKMA reassures market on NSL, eases compliance measures; MAS proposes omnibus act to address financial risks appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) issued a policy statement on Sunday, reiterating to financial institutions that as the independent statutory regulator of Hong Kong’s capital markets, the enactment of the National Securities Law (NSL) will not alter the way it regulates the market. Ashley Alder, CEO of the SFC said in the policy statement that the regulator will continue […]

The post SFC reassures NSL won’t affect hedging and short selling in Hong Kong appeared first on Asian Private Banker.

Hong Kong fund flow news refuted The introduction of the National Security Law (NSL) roused speculation and anxiety in Hong Kong, with the impact on the city’s economic freedoms still uncertain. Earlier in June, some media outlets reported a significant outflow of assets from Hong Kong to Singapore due to the worry of NSL restricting the freedom of investments. The […]

The post June Regulatory Round-up: MAS quashes fund flow rumours; WM Connect launches; PBs in HK ramp up bespoke deal record-keeping appeared first on Asian Private Banker.

Lu International (Hong Kong) (LUI HK), a subsidiary of Ping An-owned Lufax Holding, has been granted three financial licences by the Securities and Futures Commission (SFC) of Hong Kong. LUI HK has so far received Type 1 (dealing in securities), Type 4 (advising on securities), and Type 9 (asset management) licences from the SFC, which are a prerequisite for offering […]

The post Lufax Holding’s Hong Kong subsidiary receives licences for investment and WM services appeared first on Asian Private Banker.

Beijing sprang a surprise on 21 May 2020 when it announced its plan to draft a national security law for Hong Kong. The National People’s Congress approved the plan a week later. The move bypasses the Hong Kong legislature, which is required under Article 23 of the Basic Law (the mini-constitution of Hong Kong) to enact such law “on its […]

The post May Regulatory Round-up: Regulators come to the defence of Hong Kong; HKMA reviews incentive structures; Increased demand for fully remote onboarding appeared first on Asian Private Banker.

In the second half of this year, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) will be conducting a concurrent thematic review of spread charges and fee disclosure policies used by intermediaries, where there may be a conflict of interest between intermediaries and clients. The lack of fee disclosure compliance and instances of spread overcharge […]

The post Hong Kong regulators to review intermediaries’ spread charge policies in 2H20 appeared first on Asian Private Banker.

Hong Kong’s Securities and Futures Commission has reappointed Ashley Alder as CEO for another three-year term, despite news last year that Alder would step down after nearly nine years in the position. “After a careful re-assessment of the circumstances now facing Hong Kong and global economies and financial markets, and having discussed the situation with the government, I have accepted […]

The post SFC “delighted” that its CEO will stay for another three years appeared first on Asian Private Banker.

The Hong Kong Monetary Authority is seeking feedback from various industry bodies, including the Private Wealth Management Association, on its proposed mandatory reference checking (MRC) scheme in an endeavour to stop the ‘rolling bad apple’ phenomenon. Last Friday, the Hong Kong bank regulator issued a consultation paper on the implementation of the MRC, which is meant to stop employees from […]

The post HKMA seeks PWMA feedback on mandatory reference checking scheme appeared first on Asian Private Banker.

Hong Kong wants to bolster its position as a leading green and sustainable finance centre in Asia and globally. To that aim, a cross-agency steering group was set up on Monday to “provide strategic direction, with a focus on regulatory policy and market development”, as well as to facilitate regional cooperation, such as in the Greater Bay Area. The “Green […]

The post SFC and HKMA join hands to establish green finance steering group appeared first on Asian Private Banker.

The second month into the COVID-19 pandemic, Asian Private Banker talked to consultants and lawyers on the importance of keeping clear paper trails in view of possible disputes with clients who suffered losses. In Singapore, MAS standards for suitability are aligning with Hong Kong while in China, PBs and WMs are expanding their footprint following the relaxation of rules governing […]

The post April Regulatory Round-up: PBs in spotlight as clients face losses; MAS aligns with Hong Kong on suitability; China loosens overseas JV ownership rules appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) expects PBs to notify it immediately when a member of staff has been confirmed to be infected by COVID-19 — if such infection may affect operations. This is one of the changes the SFC has announced in response to the evolving COVID-19 pandemic. In a set of FAQs on licensing related matters […]

The post LCs must promptly report major operational changes caused by COVID-19: SFC appeared first on Asian Private Banker.

As the coronavirus pandemic expanded its footprint in March, regulators from different countries were rolling out measures to ensure the orderly and fair operation of the financial markets. Private banks were grappling with the increased volume of transactions under less optimal working conditions with quarantine requirements in place while price disclosures remained under regulatory scrutiny. Regulators mitigating the impact of […]

The post March Regulatory Round-up: SFC postpones regulatory deadlines; Asian banks eager to close gap in AML compliance; <i>Force majeure</i> clause may affect PB trading contracts; Regulators scrutinise price transparency at PBs appeared first on Asian Private Banker.

The Financial Action Task Force (FATF) has alerted governments and financial institutions (FIs) of novel challenges in the fight against money laundering (ML) and the financing of terrorism (TF), while the Hong Kong Securities and Futures Commission (SFC) has delayed deadlines for intermediaries to meet regulatory expectations. In a statement issued on 1 April, the global watchdog for combating ML, […]

The post Watchdog, regulator pledge support for FIs, highlight risks linked to pandemic appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has today issued a circular to remind fund industry participants of their obligations to work in the best interests of investors. “This is a period of unprecedented volatility across asset classes,” noted Ashley Alder, SFC CEO, “and the SFC remains laser focused on ensuring Hong Kong markets stay open and continue to […]

The post SFC urges skillful management of fund liquidity in view of market volatility appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has banned a former relationship manager of Bank of China International Securities Limited (BOCIS) for 14 months, it announced yesterday. SFC has found that in the course of executing nine bond transactions for two clients, Chan Tan Lo “failed to disclose and/or provided inaccurate information … about the final execution prices and/or […]

The post SFC bans BOCI Securities RM for overcharging clients appeared first on Asian Private Banker.

Private banks’ profitability may be hurt if long accepted market practices regarding price transparency and disclosure have to be abandoned. The regulators in Hong Kong and Singapore require banks to adhere to pricing arrangements agreed with clients, to capture any bilaterally agreed pricing arrangements and to notify their clients about price differences, if any. Fundamental challenge Prasanna Venkatesan, partner at […]

The post Price transparency requirement may dent profitability of PBs: Synpulse appeared first on Asian Private Banker.

The private equity (PE) industry is under pressure. A recent survey of 150 senior PE professionals revealed that 71% felt that the increasing demand – by investors, regulators, internal management and other stakeholders – for more information had the strongest impact on the global PE industry. Other highly rated issues were transparency (noted by 59% of respondents) and regulation (63%). […]

The post PE firms burdened by wider demand for more information: Vistra appeared first on Asian Private Banker.

Artificial intelligence (AI) may provide Asia with the opportunity to raise its standards in the fight against money laundering and the financing of terrorism. Asia has been criticised for its anti-money laundering (AML) and counter-financing of terrorism (CFT) efforts since Hong Kong and Singapore have imposed only minimum AML penalties and because the 1Malaysia Development Berhad (1MDB) corruption scandal has yet […]

The post Asian authorities harness AI in AML fight appeared first on Asian Private Banker.

February 2020 was overshadowed by the spread of COVID-19. In the region, regulators tried their best to help shore up the economy, by announcing monetary measures and by giving banks advice on supporting local SMEs and on providing a safe working environment for staff. Regulators seek to mitigate COVID-19 impact Since the Lunar New Year, mainland Chinese businesses have been […]

The post February Regulatory Round-up: Regulators aim to soften COVID-19 impact; MAS faults PBs for overcharging clients; China’s largest AML fine; Hong Kong beefs up privacy protection appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) consultation on proposed enhancements to its open-ended fund companies (OFC) regime ended on 20 February 2020. The SFC consultation was launched in December 2019 to encourage more private funds to set up in Hong Kong. The changes which the SFC proposed would allow Type 1 licensed or registered intermediaries, independent from the […]

The post SFC to enhance open-ended fund company scheme after muted response appeared first on Asian Private Banker.

Asset and wealth manager Mindful Wealth announced today that it has completed the VCC (variable capital company) pilot programme introduced by the Monetary Authority of Singapore (MAS) and has re-domiciled its Avenida CLO Equity Fund from the Bahamas to Singapore. With AUM of around US$600 million, Mindful Wealth offers wealth management services and conducts fund management activities in Singapore and […]

The post Mindful Wealth re-domiciles its Avenida CLO Equity Fund to Singapore appeared first on Asian Private Banker.

In the January 2020 edition of its compliance bulletin for intermediaries, the SFC emphasised the need for licensees in Hong Kong to put in place a sound risk governance structure in the face of stressed markets, volatility, and a deteriorating credit outlook. Managing liquidity risks “Elevated credit risks. Market uncertainty. Hard-to-sell assets. Massive redemptions. These are common characteristics of recent […]

The post Risk management paramount for intermediaries: SFC appeared first on Asian Private Banker.

The Hong Kong Monetary Authority (HKMA) has been in close touch with industry participants to enhance the competitiveness of Hong Kong as a private wealth management hub. Shortly after the Securities and Futures Commission (SFC) announced regulatory guidance on the licensing needs for family offices, Edmond Lau, senior executive director at the HKMA highlighted the city’s position as the leading […]

The post HKMA advocates stronger PWM industry appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) on 7 January published two circulars to clarify licensing obligations for family offices and private equity (PE) firms operating in Hong Kong. In the circular on the licensing obligations of family offices, the regulator emphasised the “activity-based” nature of the licensing regime under the Securities and Futures Ordinance (SFO) and noted that family offices […]

The post SFC rolls out licensing guidance for family offices and PE firms appeared first on Asian Private Banker.

2019 was a long year for many in the region. The implementation of complex product suitability checks in Hong Kong occupied the first seven months of most private banking compliance staff, while the latter part of the year saw preparations for the anticipated economic downturn, not to mention the persistent US-China trade war and Hong Kong protests. Regulators in the […]

The post Regulatory trends in 2019 appeared first on Asian Private Banker.

Amundi BOC WM JV approved by the CBIRC [Amundi, BOC Wealth Management] 20 Dec – Amundi and Bank of China Wealth Management were approved by the CBIRC to form an asset management joint venture. The partnership will capitalise on Amundi’s global investment management expertise and BOC WM’s extensive onshore distribution capabilities to serve institutional and individual clients in China. The […]

The post What you may have missed over the holidays appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) is to concentrate on promoting the management of climate change risks in asset management. It will do so by developing expected standards and by providing practical guidance and best practices on how environmental risks should be reflected in asset managers’ governance and oversight, investment management, risk management and disclosure — with an emphasis on […]

The post SFC prods asset managers on climate change risks appeared first on Asian Private Banker.

“Anti-Bartlett” clause exempts trustee bank from fiduciary duty The Hong Kong Court of Final Appeal (CFA) handed down its judgment in Zhang Hong Li v DBS Trustee in November. Reversing the judgment of both the Court of Appeal and Court of First Instance, the CFA relied on the anti-Bartlett clause in the trust instrument to exempt the trustee from any […]

The post November Regulatory Round-up: Final judgment on scope of “anti-Bartlett” clause; UBS fined for spread overcharges; Regulators launch AI frameworks as bank adoption increases appeared first on Asian Private Banker.

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) are formulating measures to improve market infrastructure and connectivity to China with a view to cementing Hong Kong’s position as the preferred asset management hub in the region. In an increasingly challenging economic environment, regulators are reviewing the progress made in enhancing the international competitiveness of Hong […]

The post HK regulators redesigning city as Asia’s preferred AM hub appeared first on Asian Private Banker.

In a circular issued last Thursday, Hong Kong’s SFC reiterated the need for asset managers to be on guard against dubious arrangements or transactions involving private funds and discretionary accounts after it had identified possible misconduct among investment managers. The SFC explained that in its supervision of asset managers, it had identified cases where asset managers largely followed investor’s instructions […]

The post SFC warns against misuse of private funds and discretionary accounts appeared first on Asian Private Banker.

The Monetary Authority of Singapore will “harden the requirement” for financial institutions when it comes to conducting reference checks with former employers, in order to deter ‘rolling bad apples’. In a seminar on 16 November, Ong Chong Tee, MAS’s deputy managing director, said that MAS will roll out measures to enforce individual accountability and that it is planning to officially […]

The post MAS to formalise reference checks for ‘rolling bad apples’ to strengthen public trust appeared first on Asian Private Banker.

The Monetary Authority of Singapore has fined UBS S$11.2 million (US$8.2 million) over contraventions related to spread overcharges and improper disclosure, following the SFC’s US$51 million fine on Monday. The misconduct found by MAS was similar to that of Hong Kong’s securities regulator, which includes the lack of adherence to spread or interbank prices agreed to by clients, the failure […]

The post UBS fined S$11.2 million by MAS on spread overcharges, transparency issues appeared first on Asian Private Banker.

UBS has been fined HK$400 million (US$51 million) by Hong Kong’s SFC due to spread overcharges that has affected some 5,000 client accounts and 28,700 transactions between 2008 to 2017. The SFC’s investigation, which was prompted by a self-report from UBS, found that some client advisors and client advisor assistants in UBS’s wealth management division overcharged clients when conducting bond […]

The post UBS slapped with US$51m fine, condemns spread manipulators appeared first on Asian Private Banker.

Hong Kong unperturbed by technical recession October was marked with the official announcement that Hong Kong has slipped into a technical recession, with the city’s GDP shrinking 3.2% on a quarterly basis at the end of Q3 after a 0.4% quarterly increase in Q2. Despite the downturn, experts said that the city’s financial institutions are robust enough to prevent a […]

The post October Regulatory Round-up: HK prepped for economic downturn; PB dual role of advisor and trustee comes into question; China continues to open onshore market appeared first on Asian Private Banker.

The increased application of machine learning — the mechanism that underlies artificial intelligence (AI) — is likely to raise cybersecurity concerns for private banks as it functions best in a public cloud environment. However, with the proper precautions taken, private banks can help their machines learn without exposing themselves to too much risk, an expert has explained to Asian Private […]

The post How to train your AI: Expert chimes in on proper public cloud usage for PBs appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) published guidelines on the use of external electronic data storage, including public and private clouds, in response to financial institutions’ increased usage of this technology. According to a circular published by the SFC on Thursday, the obligation was placed on Licensed Corporations (LCs) to do due diligence and prepare exit plans for the use […]

The post SFC publishes guidelines on LCs’ use of cloud storage appeared first on Asian Private Banker.

Private banks should make clients aware of the differences between execution-only and advisory services in order to justify different pricing strategies and boost the uptake of advisory in Asia, according to a whitepaper published by management consulting firm Synpulse. In response to the ban of retrocessions and increase of regulatory burdens in carrying out execution-only transactions imposed by European regulators […]

The post PBs must “clearly differentiate” execution-only and advisory services to spur advisory uptake in Asia: Synpulse appeared first on Asian Private Banker.

With trade and political uncertainties looming over multiple major markets over the past month, regulators have been reminding banks to stay alert and conduct stress tests where necessary, while China continues on the journey of broadening foreign investment channels into the onshore financial market. Both the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) issued circulars over […]

The post September Regulatory Round-up: Banks warned on liquidity risks; China removes quota control on two schemes appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) has banned a Bank of Communications (BoCom) former private banking vice president for life after he was found guilty of soliciting illegal commission payments. Vice president at BoCom between 2012 and 2015, Ye Feng was convicted of soliciting an advantage as an agent according to the Prevention of Bribery Ordinance at the Eastern Magistrates’ […]

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The Securities and Futures Commission’s (SFC) licensing reform — implemented in February 2019 to prevent employees accused of misconduct from resigning and ‘rolling’ on — could encourage staff under investigation to stay put in order to wipe their slates clean, according to a partner at Simmons & Simmons. “If the individual is subject to an investigation within the last six months before […]

The post SFC licensing reform encourages bad apples to stay put appeared first on Asian Private Banker.

Hong Kong’s Securities and Futures Commission (SFC) has fined HSBC HK$2.1 million after its private banking division failed to tape-record more than 5,000 client order instructions. According to a circular published by the SFC today, HSBC Private Banking had not enabled voice recording on 59 of its telephone lines between 8 April 2017 and 31 January 2018, which resulted in […]

The post SFC fines HSBC HK$1.2 million for breaching telephone recording rules appeared first on Asian Private Banker.

In its most recent step to leverage data analytics in its supervisory work, the Securities and Futures Commission (SFC) has launched the Key Risk Indicator (KRI) platform in a bid to better identify and manage both existing and emerging risks. The regulator has identified 22 systemically important global banks, many of which have a prominent private banking business, such as […]

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The Hong Kong Monetary Authority’s (HKMA) further guidance on the sale and distribution of debt instruments with loss-absorption features and related products may have created an uneven playing field between banks and brokerage firms, a private banking source told Asian Private Banker on the condition of anonymity. Last month, the Hong Kong regulator issued an FAQ document on the sale […]

The post HKMA’s new LAC rules favour brokerages over banks appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) released a circular on Friday highlighting the importance of liquidity risk management and reminding licensed corporations (LCs) to perform “more frequent and enhanced” liquidity stress tests and draw up action plans as whispers of a potential looming recession grow louder. “Liquidity risk management, together with securities lending and repurchase arrangements, safe custody of fund […]

The post Fund liquidity risk management is key amid increasing volatility: SFC appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) recorded a growing number of AML-related breaches in Q2 — three times as many as a year prior, according to the watchdog’s quarterly report released on Monday. The regulator’s latest report covers its activities between April and June this year, including the thematic review on prime brokerage services, the announcement of guidance on remote onboarding […]

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The Securities and Futures Commission (SFC) has banned Tu Bing, former client advisor and associate director at UBS Global Wealth Management and Business Banking, from the industry for life, almost two years after he was convicted of bribery. In 2017, the District Court found Tu guilty of soliciting and accepting illegal commission payments of approximately HK$1.4 million and sentenced the […]

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Hong Kong’s private banking and private wealth management industry saw a 2% drop in client assets in 2018, according to the SFC’s annual Asset and Wealth Management Activities Survey report, released on Friday. Combined assets declined to HK$7,624 billion despite net fund inflows of HK$379 billion. The SFC said respondents generally attributed the decline to weaker market performance at the […]

The post Hong Kong’s PB, PWM AUM declined in 2018: SFC appeared first on Asian Private Banker.

As Hong Kong and EU regulators revise their respective product categorisation rules in a bid to strengthen investor protection, private banks must grapple with regulatory differences that have emerged across jurisdictions. According to Annabella Fu, partner at Linklaters, European and Hong Kong regulators view complex products similarly but some differences exist between the categorisation of certain bonds and funds as well […]

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In light of the “relatively broad” guidelines provided by the Hong Kong Monetary Authority (HKMA) on remote onboarding, Richard Mazzochi, partner of King and Wood Mallesons told Asian Private Banker that private banks can look to the regulatory expectations set by sister regulator, the Securities and Futures Commission (SFC). “The SFC has introduced a new approach for the online onboarding of overseas […]

The post PBs can look to SFC expectations for remote onboarding to comply with HKMA rules appeared first on Asian Private Banker.

Shortly after the revised suitability regulations were implemented on 6 July, the Hong Kong Monetary Authority (HKMA) issued an FAQ document to clarify which products fall under ‘debt instruments with loss-absorption features and related products’ (loss-absorption products), for which the compliance deadline has been extended by two-to-five months. The latest FAQ highlights that the “policy intention” of the October 2018 circular […]

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Students enduring exam season weren’t the only ones feeling the heat in June. Following an on-site inspection in October and November last year, the Financial Action Task Force (FATF) released Hong Kong’s initial evaluation, in which the organisation recognised the hub as having a “strong legal foundation” to support effective action against money laundering and terrorist financing, but said it […]

The post June Regulatory Round-up: New FAQs on suitability requirements; SFC fines Credit Suisse for disclosure misconduct; FATF releases HK AML evaluation appeared first on Asian Private Banker.

The Securities and Futures Commission (SFC) has published two circulars expanding the scope of acceptable online onboarding processes for overseas clients given technological developments. Issued on Friday, the documents state which procedures are acceptable when onboarding individual overseas clients and highlight amendments made to paragraph 5.1 of the Code of Conduct. Both circulars will take effect on 5 July. According to […]

The post SFC recognises fintech’s role in remote onboarding appeared first on Asian Private Banker.

While Hong Kong’s Securities and Futures Commission (SFC) has attempted to elaborate on the investigative actions that need to be reported in its revised licensing forms, private banks have voiced their desire for a more precise definition and still need to mull over what is practicable in order to achieve compliance, Herbert Smith Freehills told Asian Private Banker. In order to […]

The post PBs need further guidance on reporting investigative actions in licensing forms appeared first on Asian Private Banker.

Since its formation last year, the Global Financial Innovation Network (GFIN) — an international group of regulators with the goal of supporting financial innovation — has launched three workstreams to explore how its participants can improve regulatory collaboration. In its inaugural report published on Tuesday, GFIN announced that one of these, the ‘cross-border testing workstream’, has received a very warm […]

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Fewer regulatory breaches were discovered during on-site inspections conducted in 2018/19, suggesting the effectiveness of the “front-loaded” approach, according to Hong Kong’s Securities and Futures Commission (SFC). The SFC published, in its 2018-19 annual report, reviews on regulatory developments and enforcement actions during the year, highlighting that it saw successes in the enhancement of internal coordination and progression of its […]

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The Securities and Futures Commission (SFC) has reprimanded and fined Credit Suisse (Hong Kong) Limited and Credit Suisse AG (collectively known as CS below) HK$2.8 million for disclosure breaches. The SFC released its state of disciplinary action yesterday and announced that the two incidents occurred between 2016 and 2017. Both incidents were self-reported by CS and the bank has taken […]

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The Securities and Futures Commission (SFC) published a circular last week to provide further clarification for its online and offline suitability requirements, which are due for implementation on 6 July 2019. In the FAQs published last Thursday, the SFC reiterated its point in a previous guiding document that the categorisation of complex and non-complex products should only be made when […]

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The Securities and Futures Commission (SFC) has reminded financial institutions that provide prime brokerage services to ensure their risk management procedures are “no less stringent than the applicable local rules”, irrespective of where assets are booked. On Monday, the regulator published its ‘Report on the Thematic Review of Prime Services and Related Equity Derivatives Activities in Hong Kong’ in addition […]

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Over the course of May, Asian Private Banker reached out to banks and consultants who are increasingly preoccupied with diverging cross-border regulations, demanding misconduct reports, and an ever-increasing need to improve banking culture and conduct. Ashley Alder, CEO of the Securities and Futures Commission (SFC) and the chairman of the Board of the International Organisation of Securities Commissions (IOSCO), said inconsistent […]

The post May Regulatory Round-up: “Vague” rules cause compliance complications; Concerns over new misconduct reporting laws; Revamp fintech, processes to achieve compliance appeared first on Asian Private Banker.

As cross-border regulations tighten and diverge while geopolitical tensions persist unabated, regulators across the globe have gathered to discuss protecting and regulating an open market while suppressing threats of fragmentation. At the inaugural Compliance and Legal Conference held by the Asia Securities Industry & Financial Markets Association (ASIFMA) which began today, the audience cited ‘fragmentation’ and ‘conduct’ as two of […]

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In order to mitigate the burden brought about by the new suitability rules, private banks will likely adopt a portfolio approach to assessing suitability in order to take “full advantage” of the flexibility offered by the Hong Kong Monetary Authority (HKMA), according to EY. “The requirement change has a significant impact on private banks. Banks do quite a lot with […]

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Hong Kong’s Securities and Futures Commission (SFC) has entered into an agreement with its counterpart in the Netherlands on the mutual recognition of funds (MRF), paving the way for the cross-border distribution of eligible funds. Signed by the SFC and the Dutch Authority for the Financial Markets (AFM), the memorandum of understanding (MoU) will allow for the distribution of eligible […]

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The Securities and Futures Commission (SFC) has formally criticised licensed corporations for their lack of transparency relating to client facilitation trades and warned that this could potentially create conflicts of interest between financial institutions and their clients. Conflicts of interest have long been a recurring pain point for regulators, who are particularly aware of the risks associated with financial institutions […]

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Hong Kong regulators have said they are not concerned about enforceability once a consistent green disclosure mechanism is established, as financial institutions have increasingly sought ESG-related guidance. Shortly after the Hong Kong Monetary Authority (HKMA) announced the green finance framework, representatives from both the HKMA and the Securities and Futures Commission (SFC) discussed the importance of such a framework during […]

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