Newsletter – November 2018

Content
  1. SFC issues restriction notices to three brokers to prohibit order placing in listed derivative warrants in client accounts linked to suspected market misconduct
  2. Revised Guideline on Anti-Money Laundering and Counter-Terrorist Financing has come into effect
  3. Revised Fund Manager Code of Conduct has come into effect
  4. Revised Code of Conduct on Disclosure of Benefits has come into effect
  5. SFC commences MMT proceedings against Health and Happiness (H&H) International Holdings Ltd and its Chairman for late disclosure of inside information

1.     SFC sets out new regulatory approach for virtual assets

On 1 November 2018, the SFC issued a statement setting out a new approach which aims to bring virtual asset portfolio managers and distributors of virtual asset funds under its regulatory net. It also sets out a conceptual framework for the potential regulation of virtual asset trading platforms.

In light of the significant risks virtual assets pose to investors, the SFC will adopt new measures within its regulatory remit to protect those who invest in virtual asset portfolios or funds. The SFC will impose licensing conditions on firms which manage or intend to manage portfolios investing in virtual assets, irrespective of whether the virtual assets meet the definition of “securities” or “futures contracts”.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR126

For a copy of the Statement on regulatory framework for virtual asset portfolios managers, fund distributors and trading platform operators, please refer to:

https://www.sfc.hk/web/EN/news-and-announcements/policy-statements-and-announcements/reg-framework-virtual-asset-portfolios-managers-fund-distributors-trading-platform-operators.html

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2.      Revised Guideline on Anti-Money Laundering and Counter-Terrorist Financing has come into effect

On 1 November 2018, the revised Guideline on Anti-Money Laundering and Counter-Terrorist Financing (“AML/CFT Guideline”) has come into effect.

For the revised AML/CFT Guideline, please refer to: 

https://www.sfc.hk/web/EN/assets/components/codes/files-current/web/guidelines/guideline-on-anti-money-laundering-and-counter-financing-of-terrorism-(for-licensed-corporations)/guideline-on-anti-money-laundering-and-counter-financing-of-terrorism-(for-licensed-corporations).pdf

For the relevant Gazette Notice, please refer to:

https://www.sfc.hk/web/EN/pdf/Gazette/G.N.%207784%20of%202018.pdf

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3.      Revised Fund Manager Code of Conduct has come into effect

On 17 November 2018, the revised Fund Manager Code of Conduct has come into effect.

For the Revised Fund Manager Code of Conduct, please refer to: 

https://www.sfc.hk/web/EN/assets/components/codes/files-current/web/codes/fund-manager-code-of-conduct/fund-manager-code-of-conduct.pdf

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4.      Revised Code of Conduct on Disclosure of Benefits has come into effect

On 25 November 2018, the revised Code of Conduct with disclosure requirements for discretionary accounts has come into effect.

For Revised Code of Conduct, please refer to: 

https://www.sfc.hk/web/EN/assets/components/codes/files-current/web/codes/code-of-conduct-for-persons-licensed-by-or-registered-with-the-securities-and-futures-commission/code-of-conduct-for-persons-licensed-by-or-registered-with-the-securities-and-futures-commission.pdf

For the relevant Gazette Notice, please refer to:

https://www.sfc.hk/web/EN/pdf/Gazette/G.N.%203771%20of%202018.pdf

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5.    SFC commences MMT proceedings against Health and Happiness (H&H) International Holdings Ltd and its Chairman for late disclosure of inside information

On 29 Nov 2018, SFC commenced proceedings in the Market Misconduct Tribunal (“MMT”) against Health and Happiness (“H&H”) International Holdings Ltd (“Health and Happiness”) for failing to disclose price sensitive information as soon as reasonably practicable.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR131

 

The article is for general information purpose only and is not intended to constitute legal or other professional advice.

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