STORIES YOU MAY HAVE MISSED THIS WEEK
ESG
DBS has adopted MSCI’s ESG ratings for its wealth management business, with the aim of providing clients with greater transparency over the ESG characteristics of their investment portfolios. According to the bank, the ESG ratings will be embedded in its suite of wealth products, advisory and discretionary portfolio services. The ratings will be available to wealth clients through their relationship managers upon request. The bank will also explore leveraging this capability to introduce ESG offerings to in retail applications…
Business moves
T Rowe Price has launched its US Growth Stock Strategy to retail investors in Japan. During its initial public offering last month, the fund gathered around $1.4bn. This is the second public fund that the firm has launched in Japan, with the first being the Global Focused Growth Equity Fund, which has gathered $1.3bn in assets after its launch in May last year…
Eastspring Investments has completed its acquisition of 50.1% of Bangkok-based Thanachart Fund Management from Thanachart Bank and Government Savings Bank, with Thanachart Bank holding the remaining 49.9% stake of the fund management firm. Eastspring announced its plans to acquire the Thai firm in September, with an option to increase its ownership to 100% in the future. In 2018, Eastspring also bought 65% of Bangkok-based TMB Asset Management from TMB Bank. With the latest acquisition, Eastspring becomes Thailand’s fourth-largest asset manager, with a market share of 12% and combined AUM of RHB 653bn ($21.6bn) through the two fund management firms…
Regulations and enforcement
Malaysia is planning to issue up to five digital banking licences, which will enable qualified firms to establish digital banks to conduct either conventional or Islamic banking in Malaysia, according to a statement from the country’s central bank, Bank Negara Malaysia. Last week, it issued a draft on the licensing framework for digital banks, which outlines the requirements and application procedures needed to be a digital bank. The country expects that digital banks will be able to address market gaps in the underserved and unserved segments and should offer meaningful access to and promote responsible usage of suitable and affordable financial solutions to customers…
Hong Kong’s Securities and Futures Commission (SFC) has launched a consultation on enhancements to the open-ended fund companies (OFC) regime. Under the proposed changes, licensed or registered securities brokers will be able to act as custodians for private OFCs and expand the investment scope for private OFCs to include loans as well as shares and debentures of Hong Kong private companies. “The proposed enhancements seek to encourage more private funds to set up in Hong Kong,” Christina Choi, SFC’s executive director of investment products, said in a statement…
The SFC has reprimanded and fined RHB Securities Hong Kong HK$6.4m ($820,000) for its failures to comply with regulatory requirements on conflicts of interests and supervision of account executives. The disciplinary action followed an SFC investigation which found that RHB Securities failed to effectively implement its policy for avoiding actual and potential conflicts of interest between its research reports and investment banking relationship, adequately disclose its investment banking relationship with the listed company covered in a research report and effectively monitor the trading activities of its research analysts. SFC’s move also follows RHB Bank’s decision that it will cease to operate in Hong Kong, which includes its brokerage, asset and wealth management services…
