Oversight - Financial Services in Hong Kong
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Welcome to Simmons & Simmons' Oversight, our financial services newsletter from Hong Kong.
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- Oversight June 2010 - Consultation Conclusions on changes to the SFC's Code on Unit Trusts and Mutual Funds
- This Oversight focuses specifically on the new requirements and changes under the revised Code on Unit Trusts and Mutual Funds (Code), contained in the Consultation Conclusions on Proposals to Enhance Protection for the Investing Public.
- (Submitted: 15 June 2010)
- Oversight March 2010 - Hong Kong short position reporting conclusions
- On 02 March 2010, the Securities and Futures Commission of Hong Kong issued its Consultation Conclusions on Increasing Short Position Transparency with regard to its consultation paper of 31 July 2009 concerning proposals to introduce short position reporting requirements under the Securities and Futures Ordinance.
- (Last reviewed: 14 May 2010; submitted: 09 March 2010)
- Oversight February 2010 - Consultation on proposals to extend the Takeovers Code to REITs and Parts XIII, XIV and XV of the Securities and Futures Ordinance to listed funds
- This newsletter looks at the Consultation issued by the Hong Kong Securities and Futures Commission (SFC) in January 2010 on proposals to extend (1) the Takeovers Code to REITs, and (2) Parts XIII, XIV and XV of the Securities and Futures Ordinance to listed funds.
- (Last reviewed: 18 March 2010; submitted: 08 February 2010)
- Oversight January 2010 - Consultation on a scripless securities market in Hong Kong
- On 30 December 2009, the Securities and Futures Commission, the Federation of Share Registrars Limited and The Stock Exchange of Hong Kong Limited issued a joint consultation paper to introduce a regime for gradual implementation of a scripless securities market in Hong Kong.
- (Last reviewed: 25 February 2010; submitted: 25 January 2010)
- Oversight November 2009 - Consultation on the regulation of intermediary conduct and selling practices
- Following on from Oversight October 2009, we look at the Hong Kong Securities and Futures Commission's (SFC) proposed changes to enhance the conduct of SFC licensed persons in the sale of investment products.
- (Last reviewed: 17 November 2009; submitted: 11 November 2009)
- Oversight October 2009 - Consultation on proposed amendments to the Code on Unit Trusts and Mutual Funds
- On 25 September 2009 the Hong Kong Securities and Futures Commission issued the consultation paper, "Proposals to Enhance Protection for the Investing Public".
- (Last reviewed: 03 November 2009; submitted: 23 October 2009)
- Oversight July 2009 - Consultation on enhancement of the AML regime of the financial sector
- On 09 July 2009, the Financial Services and the Treasury Bureau of Hong Kong issued a consultation paper to gauge public views on the conceptual framework of the legislative proposal to enhance the anti money laundering regulatory regime in respect of the financial sector in Hong Kong. This article provides an overview of the proposed legislation and its potential Implications on the operations of financial institutions.
- (Last reviewed: 06 August 2009; submitted: 28 July 2009)
- Oversight July 2009 - Future hedge fund regulation in the EU and its impact on Hong Kong and Singapore fund managers
- On 30 April 2009 the European Commission, the executive body of the 27 Member State European Union, published the final text of a draft EU Directive on Alternative Investment Fund Managers. This article briefly explains the major issues under the Directive and some of the relevant consequences.
- (Submitted: 02 July 2009)
- Oversight June 2009 - Hong Kong and Taiwan allow mutual recognition of ETFs
- On 22 May 2009, the Securities and Futures Commission of Hong Kong and the Financial Supervisory Commission of Taiwan signed a side letter, complimenting a bilateral Memorandum of Understanding signed between the parties in 1996, to facilitate the cross listing of exchange traded funds between the stock exchanges of Taiwan and Hong Kong.
- (Submitted: 12 June 2009)
- Oversight March 2009 - Selling in Hong Kong: Suitability obligations
- In the wake of the Lehman Minibonds crisis in Hong Kong, the Hong Kong Securities and Futures Commission has turned its attention to the duty of intermediaries to ensure investment products are suitable for investors. This newsletter provides an analysis of what is required of intermediaries - be they banks, brokers or fund managers and advisers - when recommending investment products to their clients, and offers some practical guidance on how best to comply with the suitability obligations.
- (Submitted: 23 March 2009)
- Oversight February 2009 - A summary of the SFC's report on the issues raised by Lehman minibonds
- In December 2008, the Hong Kong Securities and Futures Commission submitted its report entitled "Issues raised by the Lehman minibonds crisis" to the Financial Secretary. This article provides a brief summary of the Report with regard to the issues which may be relevant to intermediaries, including fund managers and distributors of funds and other investment products.
- (Submitted: 26 February 2009)
- Oversight September 2008 - Hong Kong and Australia allow mutual recognition of retail funds
- The Hong Kong Securities and Futures Commission and the Australian Securities and Investments Commission have recently signed a Declaration on Mutual Recognition of Cross Border Offering of Collective Investment Schemes to facilitate the sale of Australian retail funds to investors in Hong Kong and vice versa.
- (Submitted: 03 October 2008)
- Oversight July 2008 (Second Issue) - SFC and HKEX streamline admission procedures for exchange participants
- The Securities and Futures Commission and Hong Kong Exchanges and Clearing Limited have recently announced a relaxation of the admission procedure for exchange participants on The Stock Exchange of Hong Kong Limited and The Hong Kong Futures Exchange Limited as well as a relaxation of the registration procedure for exchange participants' staff members and substantial shareholders.
- (Submitted: 17 July 2008)
- Oversight July 2008 (First Issue) - SFC revises advertising guidelines for authorised funds
- This article focuses on the major changes set out in the standalone set of revised advertising guidelines applicable to all SFC authorised schemes and their implications for the fund industry in Hong Kong.
- (Submitted: 10 July 2008)
- Oversight June 2008 - Electronic submission of financial returns by licensed corporations
- The Securities and Futures Commission (SFC) issued a consultation paper on electronic submission of financial returns proposing to require all corporations licensed to carry on regulated activities under the Securities and Futures Ordinance to submit their financial returns electronically. Subsequent to public consultation, the SFC published its conclusions which were to proceed with its proposal. The new system will come into effect on 01 November 2008.
- (Submitted: 13 June 2008)
- Oversight May 2008 - Consultation Paper on Exemption of ETFs from Part XV of the SFO
- With a view to developing Hong Kong as Asia's leading Exchange Traded Fund market, the Securities and Futures Commission proposes to amend the Guidelines for the Exemption of Listed Corporations from Part XV of the Securities and Futures Ordinance (Disclosure of Interests) (Guidelines) to extend the scope of exemption in the Guidelines to cover SFC authorised open ended collective investment schemes which are in corporate form and listed on the SEHK.
- (Submitted: 30 May 2008)
- Oversight April 2008 - Consultation on e-Prospectuses for public offers of companies and funds
- The SFC and the SEHK have jointly issued the Joint Consultation Paper on the Proposal to allow a Companies Ordinance Offeror to issue a CO Paper Application Form for Shares in or Debentures of a Company to be listed on SEHK and a CIS Offeror to supply a CIS Paper Application Form for Interests in an SFC authorised CIS to be listed on SEHK, with a Listing Document Displayed on Certain Websites.
- (Submitted: 30 May 2008)
- Oversight February 2008 - Hong Kong SFC consultation paper on pre vetting of CIS advertisements
- SFC consultation paper on pre vetting of CIS advertisements.
- (Submitted: 19 February 2008)
- Oversight December 2007 - The SFC and UCITS III in Hong Kong
- The SFC and UCITS III in Hong Kong
- (Submitted: 03 December 2007)
- Oversight August 2007 - Relaxation of QDII scheme rules
- The article provides an analysis on the relaxation of QDII scheme rules and discusses whether these changes will start a new wave of investment out of PRC.
- (Submitted: 24 August 2007)
- Oversight June 2007 - Licensing of hedge fund managers - SFC pilot program
- An analysis of the Securities and Futures Ordinance which governs the regulation and licensing of hedge fund managers and investment advisers.
- (Submitted: 06 July 2007)
- Oversight May 2007 - Proposed amendments to the Securities and Futures (Stock Market Listing) Rules
- Consultation conclusions on proposed amendments to the Securities and Futures (Stock Market Listing) Rules.
- (Submitted: 22 May 2007)
- Oversight April 2007 - Qualified foreign institutional investor regulations
- New qualified foreign institutional investor (QFII) regulations mark further liberalisation of China's capital markets.
- (Submitted: 08 May 2007)
- Oversight October 2006 - Prospectus regime - SFC conclusions
- The Securities and Futures Commission has issued its consultation conclusions on possible reforms to the Prospectus Regime in the Companies Ordinance.
- (Submitted: 23 October 2006)
- Oversight May 2006 - REIT regime
- "Frequently Asked Questions about SFC Authorization of Real Estate Investment Trusts" have been issued by the SFC. This Oversight highlights the areas in the FAQ which may be of interest to market participants. A key issue relates to the control of property in which a REIT invests.
- (Submitted: 05 June 2006)
- Oversight March 2006 - Profits tax exemption for offshore funds
- Revenue (Profits Tax Exemption for Offshore Funds) Ordinance promulgated.
- (Submitted: 08 May 2006)
- Oversight January 2006 - Possible reforms to the prospectus regime
- Consultation Paper on Possible Reforms to the Prospectus Regime in the Companies Ordinance.
- (Submitted: 28 February 2006)
- Oversight September 2005 - Schedule 5 SFO regulated activities
- Revisions to Schedule 5 of the Securities and Futures Ordinance to be effective 07 December 2005.
- (Last reviewed: 13 September 2005; submitted: 13 January 2006)
- Oversight August 2005 - Offshore funds Hong Kong tax exemption
- Draft Inland Revenue (Profits Tax Exemption for Offshore Funds) Bill 2005 published on 30 June 2005.
- (Submitted: 03 November 2005)
- Oversight June 2005 - HK REITs set to invest in the PRC
- Revised Code on Real Estate Investment Trusts published 16 June 2005.
- (Last reviewed: 27 June 2005; submitted: 14 October 2005)
- Oversight May 2005 - Hedge fund rule revisions
- SFC consultation on authorised Hedge Fund rule revisions published May 2005.
- (Submitted: 24 August 2005)
- Oversight March 2005 - HK REITs to invest outside Hong Kong
- SFC Consultation on Draft Practice Note governing overseas investment published on 30 March 2005.
- (Submitted: 18 May 2005)
- Oversight January 2005 - Offshore funds - New tax exemption consultation
- Revised proposal published by the Financial Services and Treasury Bureau on 31 December 2004.
- (Submitted: 15 February 2005)
- Oversight October 2004 - Prospectus regime in Hong Kong to change
- The Companies (Amendment) Ordinance 2004, effective 03 December 2004, implements "Phase II" of a three phase review of the securities offering framework in Hong Kong, and also builds on minority shareholders' rights.
- (Submitted: 06 January 2005)
- Oversight September 2004 - Revised guidelines on other securities
- On 04 September 2004 the Mandatory Provident Fund Schemes Authority published new Guidelines on Other Securities which allow investment in real estate investment trusts (REITs) by registered mandatory provident fund schemes.
- (Submitted: 20 October 2004)
- Oversight June 2004 - Market misconduct enforcement regime - Concerns of possible human rights violations
- SFC's enforcement powers compromised by human rights protections.
- (Submitted: 30 June 2004)
- Oversight May 2004 - Corporate collective investment schemes
- The regime under the Companies Ordinance in respect of corporate collective investment schemes is set to change.
- (Submitted: 30 June 2004)
- Oversight January 2004 - Offshore funds - Proposed Hong Kong tax exemption
- This Oversight briefly recaps some of the issues for offshore funds managed from Hong Kong and examines the consequences of the changes now proposed by the Financial Services and Treasury Bureau to the Inland Revenue Ordinance.
- (Submitted: 30 January 2004)
- Oversight November 2003 - Exchange traded funds guidelines
- The final form of the Guidelines for Regulating Index Tracking Exchange Traded Funds are now in force.
- (Submitted: 12 December 2003)
- Oversight November 2003 - Capital investment entrant schemes
- The Government of the Hong Kong Special Administrative Region announced on 30 September this year that its Capital Investment Entrant Scheme would start receiving applications from prospective entrants to Hong Kong from 27 October 2003.
- (Submitted: 25 November 2003)
- Oversight October 2003 - New rules for listing capital protected instruments
- New rules for the listing of Capital Protected Instruments (CPIs) on The Stock Exchange of Hong Kong Limited (SEHK).
- (Submitted: 06 October 2003)
- Oversight September 2003 - Listing funds in Hong Kong
- Revisions to Chapter 20 of the Listing Rules in respect of authorised funds issued 01 September 2003.
- (Submitted: 17 September 2003)
- Oversight August 2003 - Real estate investment trusts
- The Securities and Futures Commission (SFC) has published its Code on Real Estate Investment Trusts setting out its requirements to authorise HK-REITS.
- (Submitted: 03 September 2003)
- Oversight July 2003 - SFO issues - Contract notes
- Part VI of the Securities and Futures Ordinance sets out the new record keeping and contract note requirements applicable to all intermediaries which are regulated by the Securities and Futures Commission (SFC) and repeals and updates the old requirements of the Securities Ordinance.
- (Submitted: 05 August 2003)
- Oversight June 2003 - Companies (Amendment) Bill 2003
- 13 June 2003 saw the first gazetting of the Companies (Amendment) Bill 2003 which, if enacted in its present form, will make fundamental changes to offers of shares and debentures in Hong Kong.
- (Submitted: 10 July 2003)
- Oversight June 2003 - SFO issues - Disclosure of interests
- Part XV of the Securities and Futures Ordinance (SFO) has now replaced the Securities (Disclosure of Interests) Ordinance (SDIO). This Oversight seeks to clarify some of the misconceptions concerning the duty to disclose as applied in particular to fund managers and focuses on when fund management groups may or may not fall under this duty.
- (Submitted: 10 June 2003)
- Oversight June 2003 - SFO issues - Stabilization
- The Securities and Futures Ordinance (SFO)not only consolidated but also substantially revised the legal framework outlawing what is now defined as "market misconduct".
- (Submitted: 09 June 2003)
- Oversight May 2003 - SFO issues - Approved persons
- The Securities and Futures Ordinance (SFO) sets out the new requirements for every type of "advertisement" or "invitation" issued to the public.
- (Submitted: 09 June 2003)
- Oversight April 2003 - SFO issues - Automated trading services
- The Securities and Futures Ordinance (SFO) has amended the licensing system and, in particular, introduced a single licence endorsed with one or more "regulated activities". A new regulated activity, governing the provision of automated trading services (ATS), has been introduced. This Oversight looks at the rules governing an ATS provider, focussing on the scope of ATS activities now regulated and how this is licensed under the SFO.
- (Submitted: 14 April 2003)
- Oversight March 2003 - SFO issues - Cold calls
- The Securities and Futures Ordinance (SFO) will consolidate and amend the existing regime which generally prohibits cold calling. This issue of Oversight looks at this area of the law in detail, made more topical by recent pronouncements on the subject by the front line regulators of intermediaries, the Monetary Authority (HKMA) and the Securities and Futures Commission (SFC).
- (Submitted: 14 April 2003)
- Oversight March 2003 - Hong Kong to remove tax risk to offshore funds
- On 05 March 2003 Hong Kong's present Financial Secretary announced in his budget address a significant change in Government policy to end the uncertainty in respect of non-residents' profits tax liability, including Hong Kong-based fund managers and their offshore funds.
- (Submitted: 10 March 2003)
- Oversight February 2003 - SFO issues - The new regime for offering investments
- The Securities and Futures Ordinance (SFO) will build on and tighten the existing law governing the offering of investments in Hong Kong.
- (Submitted: 10 March 2003)
- Oversight February 2003 - SFO issues - The new market misconduct regime
- The Securities and Futures Ordinance (SFO) will repeal a number of ordinances which include the present statutory framework governing what is now defined as "market misconduct".
- (Submitted: 10 March 2003)
- Oversight January 2003 - SFO issues - The new disclosure of interests regime
- The Securities and Futures Ordinance (SFO) will amend the existing regime governing the disclosure of interests in Hong Kong listed companies.
- (Submitted: 10 March 2003)
- Oversight January 2003 - SFO issues - The new licensing regime
- One of the major innovations of the Securities and Futures Ordinance (SFO) is the restructuring of the existing licensing system.
- (Submitted: 10 March 2003)
- Oversight January 2003 - SFO issues - The impending Securities and Futures Ordinance in Hong Kong
- An introduction to the impending Securities and Futures Ordinance (SFO) in Hong Kong.
- (Submitted: 10 March 2003)
- Oversight November 2002 - The USA PATRIOT Act
- This new law gives the United States government sweeping powers in its self-declared "war on terrorism". In particular, section 352 imposes significant new anti-money laundering requirements on all "financial institutions".
- (Submitted: 10 March 2003)
- Oversight May 2002 - Highlights of the new hedge fund guidelines
- After much anticipation the Securities and Futures Commission (SFC) issued, on 02 May 2002, guidelines for the authorisation of collective investment schemes, commonly known as "hedge funds".
- (Submitted: 10 March 2003)
- Oversight December 2001 - The new Code of Conduct for Persons Registered with the SFC
- Welcome to Oversight, our new financial services newsletter. Our objective is to provide in-house counsel and compliance professionals with topical comment on legal and regulatory issues affecting the financial services industry. Our aim therefore is to provide practical guidance on regulatory developments rather than yet another report on what is happening.
- (Submitted: 10 March 2003)