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.
Category: Regulation
SFC: Fee disclosure regs to support robo-advice
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.
SFC slaps HSBC with record fine, suspension
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.
HKMA: Banks misinterpret fund regs
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.
China rolls out new rules for AM firms
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.
HK industry says no to fee-based model
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 to set up fifth “sandbox” in Asia
Taiwan officials plan to join other regional countries in setting up a regulatory sandbox to support fintech development by the end of the year.
Former Citi RM slapped with 3-year ban
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.
MAS slaps lifetime ban on ex-wealth manager in 1MDB action
The Monetary Authority of Singapore (MAS) has issued prohibition orders against those involved in the 1Malaysia Development Berhad (1MDB) state fund breach, one of the world’s largest money laundering scandals in recent history.
Second US firm receives RQFII quota
Boston-based Acadian Asset Management received an RQFII quota to invest onshore, becoming only the second US-based asset manager to be granted the allocation.
