China’s regulator has clarified its position on the halt of Hong Kong equity fund approvals and released some rules for firms intending to launch them.

China’s regulator has clarified its position on the halt of Hong Kong equity fund approvals and released some rules for firms intending to launch them.
Fintech startups using the chatroom can now enter the regulatory sandbox without being required to have a bank partner, according to the Hong Kong Monetary Authority.
Conflicts of interests arising from the sale of in-house products by fund distributors are on the radar of both the Hong Kong Monetary Authority and the Securities and Futures Commission.
The Securities and Futures Commission’s recent decision to enhance fee disclosure may drive investors to use alternative distribution platforms, such as online or robo-advisory services, according to Christina Choi, SFC’s executive director for investment products division.
A Hong Kong tribunal has upheld disciplinary action taken against the local branch of HSBC Group’s Swiss private banking business for “material systemic failures” in relation to the sale of structured products, including from Lehman Brothers, in the run up to the global financial crisis.
In terms of fund distribution, banks in Hong Kong have misinterpreted some of the HKMA’s directives, adding unnecessary compliance work, according to deputy CEO Arthur Yuen.
Managers cannot offer investors a guaranteed rate of return, according to one prohibition in the draft guidelines for asset managers released by the People’s Bank of China.
A majority of the industry responding to the SFC’s proposal on “enhancing industry regulation” were against introducing the fee-based model in Hong Kong.
Taiwan officials plan to join other regional countries in setting up a regulatory sandbox to support fintech development by the end of the year.
A former relationship manager at Citibank in Hong Kong was banned for impersonating a female client to make stock trades, according to Hong Kong’s Securities and Futures Commission.
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