Financial Services Acquisitions: A Primer to Buying Securities Firms, Asset Managers, Insurers and Banks

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Financial Services Acquisitions: A Primer to Buying Securities Firms, Asset Managers, Insurers and Banks

Acquisitions of financial services firms are governed in Hong

Kong by a patchwork of laws and regulations. Each sector of the

industry has its own governing laws and regulators, each with

different requirements. The core regulatory framework comprises the

following:

Banking and Deposit Taking. The Hong Kong Monetary Authority

("HKMA") regulates commercial banks,

private banks and other deposit taking institutions under the

Banking Ordinance ("BO").

Insurance. The Insurance Authority

("IA") regulates insurance companies

under the Insurance Companies Ordinance

("ICO").

Securities and Futures. The Securities and Commission

("SFC") regulates merchant and

investment banks, asset managers, brokers and investment advisers

under the Securities and Futures Ordinance

("SFO"). The Hong Kong Exchanges and

Clearing, which operates the Stock Exchange of Hong Kong

("SEHK") and the Hong Kong Futures

Exchange ("HKFE"), regulates brokers who

are exchange participants.

Provident and Retirement Schemes. The Mandatory Provident Fund

Schemes Authority ("MPFA") regulates

trustees and intermediaries of mandatory provident fund

("MPF") schemes under the Mandatory

Provident Fund Schemes Ordinance

("MPFSO").

These laws create challenges specific to acquisitions of

financial servic...

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