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The HKMA and the SFC permit relaxation of suitability and other regulatory requirements while dealing with high-net-worth and experienced investors.

By Simon Hawkins and Adrian Fong

On 28 July 2023, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint circular (Joint Circular) outlining a new streamlined approach for compliance with the suitability and related obligations when dealing with sophisticated professional investors, alongside guidance and FAQ on how to apply the new approach.

Regulators consult on an investor identification regime and outsourcing requirements, and issue guidance on electronic storage of regulatory records and environmental risk management

By Farhana Sharmeen, Simon Hawkins, Kenneth Y.F. Hui, and Marc Jia Renn Tan

This blog post summarises key regulatory developments in Hong Kong and Singapore during December 2020, including:

  • The SFC’s consultation on an investor identification regime for the securities market
  • The SFC’s additional guidance on external electronic data storage
  • The MAS’ response to feedback on the proposed guidelines on environmental risk management
  • The MAS’ consultation on requirements in relation to the management of outsourced services

Regulators propose new regulations for virtual asset exchanges and enhanced customer identity verification requirements, and launch an innovative commercial data interchange.

By Farhana Sharmeen, Simon Hawkins, Kenneth Y.F. Hui, and Marc Jia Renn Tan

This blog post summarises key regulatory developments in Hong Kong and Singapore during November 2020, including:

— The Hong Kong FSTB’s consultation proposing a new regulatory framework for virtual asset exchanges
— The HKMA’s new commercial data interchange initiative
— The MAS’ consultation proposing requirements to strengthen financial institutions’ non-face-to-face identity verification process of individuals
— The MAS’ guidance to financial institutions to review security controls amidst COVID-19
— The MAS’ publication of its 2019/2020 enforcement report

Regulators consult on anti-money laundering guidelines and issue guidance on cybersecurity, best execution, and senior management accountability.

By Farhana Sharmeen, Simon Hawkins, Kenneth Y.F. Hui, and Marc Jia Renn Tan

This blog post summarizes key regulatory developments in Hong Kong and Singapore during September 2020, including: (i) the SFC’s consultation on enhancements to its Guideline on Anti-Money Laundering and Counter-Financing of Terrorism for SFC-licensed firms (AML Guideline); (ii) the SFC’s thematic review report setting out the key findings and guidance on cybersecurity issues and vulnerabilities associated with mobile trading applications; (iii) the MAS’ consultation response to its proposal on best execution requirements; and (iv) the MAS’ new accountability guidelines for senior management.

Regulators are consulting on how to enhance trust business regulation, introduce new omnibus legislation, and encourage best practices in sustainable banking.

By Farhana Sharmeen, Simon Hawkins, Kenneth Hui, and Marc Tan

This blog post summarises key regulatory developments in Hong Kong and Singapore during July 2020, including:

  • The HKMA’s publication of examples of good practices for green and sustainable banking adopted by various major international banks, which the HKMA has encouraged banks to review and consider in connection with managing climate change risks
  • The HKMA’s consultation proposing new measures to better regulate and supervise trust business, which will be particularly relevant to the wealth management sector
  • The MAS’s consultation on new omnibus legislation designed to enhance the effectiveness of addressing financial sector-wide risks

Regulators seek to expand market connectivity for wealth management products and enhance financial institutions’ environmental risk management.

By Farhana Sharmeen, Simon Hawkins, Kenneth Hui, and Marc Tan

This blog post summarises key regulatory developments in Hong Kong and Singapore during June 2020, including:

  • The announcement of a new “Wealth Management Connect” mutual market access project to link Hong Kong, Macao, and mainland China’s Greater Bay Area (GBA)
  • Amendments to the Hong Kong licensing regime for activities relating to over-the-counter (OTC) derivatives
  • Consultations on environmental risk management for Singapore financial institutions
  • Revisions to Singapore’s exemption framework for cross-border business arrangements of capital markets intermediaries

Regulators seek to address “rolling bad apples”, bank culture reform, and cryptocurrency derivatives.

By Farhana Sharmeen, Simon Hawkins, Kenneth Hui, and Marc Tan

This blog post summarises key regulatory developments that took place in Hong Kong and Singapore in May 2020, as regulators in both jurisdictions issued regulatory pronouncements across a spectrum of topics — from the Hong Kong Monetary Authority (HKMA) consulting on proposals to address the so-called “rolling bad apples” phenomenon in the banking sector, to the Monetary Authority of Singapore (MAS) publishing proposals for a regime to regulate certain cryptocurrency derivatives.