Allen & Overy LLP (JD Supra Hong Kong)

The Hong Kong Monetary Authority (HKMA) released its consultation conclusions on the proposed Mandatory Reference Checking Scheme (MRC Scheme) on 3 May 2021. Please see full Publication below for more information.

The SFC's latest annual and quarterly reports highlight the SFC's regulatory work since April 2019 and illustrate some key trends in its enforcement agenda. These reports show that the SFC continues to focus its enforcement team on cases that have the potential to harm investors and cause serious reputational damage to Hong Kong, as well as highlight some of the other key enforcement trends. ...

There are various exciting regulatory developments that we expect to see in Hong Kong throughout 2021. This bulletin looks at a number of key regulatory areas of focus in relation to: i) anti-money laundering and counter-terrorist financing; ii) personal data/outsourcing/cloud storage; iii) the asset management and funds industry; iv) trust and custody business; v) corporate governance; vi) OTC...

The Hong Kong government recently announced that the insurance group-wide supervision framework (GWS framework) will commence on 29 March 2021. The GWS framework will be implemented via the Insurance (Amendment) (No. 2) Ordinance 2020, which was passed by the Hong Kong legislature on 17 July 2020. Please see full Publication below for more information.

The use of electronic data storage as a means to store information and documents is increasingly prevalent – generally and amongst licensed corporations. However, regulatory requirements in Hong Kong around keeping of records have historically been restrictive. Whilst respecting the legitimate need for firms to be able to store records in an efficient manner, the Hong Kong regulators have...

2020 has been one of the most eventful and unprecedented years for competition law in Thailand. This year, four public hearings have taken place, three industry-specific regulations on unfair practices were issued, the dominance thresholds were amended, the authority has published a detailed merger control manual, and two pre-closing merger approvals were issued – with one landmark case leading...

Recent annual and quarterly reports published by Hong Kong’s Securities and Futures Commission (the SFC) highlight the SFC’s regulatory work for the period dated April 2019 to March 2020 (the 2019/2020 Period), and the period dated April 2020 to September 2020, respectively. Please see full Publication below for more information.

On 27 November 2020, the Department of Justice of the HKSAR Government and the Supreme People’s Court of the People’s Republic of China (the PRC) signed the Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region (the Supplemental Arrangement). The Supplemental Arrangement is a welcome development as it removes

The SFC published its annual report for 2019/2020 in June and has also published its quarterly report for Q2 2020. - These reports show that the SFC continues to focus its enforcement team on cases that have the potential to harm investors and cause serious reputational damage to Hong Kong, as well as highlight some of the other key enforcement trends. Please see full Publication below for...

(i) a licensing regime for virtual asset trading platforms in Hong Kong, including anti-money laundering obligations; (ii) a two-tier registration regime for dealers in precious metals and stones; and

The recent High Court decision of Cheung Ka Ho Cyril v Securities and Futures Commission and another [2020] HKCFI 270 confirmed the powers of the Securities and Futures Commission (SFC) to (i) seize digital devices such as smart phones and tablets in the course of executing a search warrant, and (ii) demand passwords to the seized digital devices and email accounts.

On 15 January 2020, we published a newsflash regarding the decision of the Hong Kong Court of First Instance dated 13 January 2020 (Decision) on the recognition of the appointment of bankruptcy administrators of CEFC Shanghai International Group Limited (Company) in the mainland of the People's Republic of China (Mainland). This was the first – and so far only – application in Hong Kong made by...

A company applying for a licence from the Securities and Futures Commission (SFC) may seem daunting but with careful thought and observation of some fundamental aspects of the SFC’s requirements, a successful outcome can be achieved. Below we have set out our top 10+1 things to know when embarking on the application process.

In Securities and Futures Commission v Yiu Hoi Ying Charles and Others, the Court of Final Appeal (CFA) curtailed the ambit of the “innocent purpose defence” to insider dealing under s.271(3) of the Securities and Futures Ordinance (SFO). That defence states that a person will not be guilty of insider trading if their purpose for trading was not to profit or avoid a loss by using the inside...

Background - The Securities and Futures Commission (“SFC”) has recently published the much anticipated conclusions (“Consultation Conclusions”) to the Consultation Paper on the Proposed Guidelines on Online Distribution and Advisory Platforms (“Consultation Paper”).

On 2 March 2018, the Court of First Instance (CFI) published reasons for its decision in Lasmos Limited v Southwest Pacific Bauxite (HK) Limited [2018] HKCFI 426. Harris J held that where a disputed debt is alleged to have arisen from a contract that contains an arbitration clause that covers any dispute relating to the debt, a winding up petition that relies on that debt should generally be...

Speed read - On 7 February 2018, the Court of First Instance (CFI) published reasons for its decision in China Lumena New Materials Corp. Justice Harris reaffirmed his earlier decision and held that where foreign insolvency officeholders are appointed by the court in the country of incorporation of the company, their ability to obtain documents relating to the company’s bank accounts located...

On 12 December, the Securities and Futures Commission (the SFC) published updated guidance on cooperation (the Guidance) in disciplinary, civil court and Market Misconduct Tribunal (MMT) proceedings. Much of the guidance is neither new nor will surprise the market. However, formal discounts for early settlement will be welcomed, while its emphasis on third party reviews and directors’...

On the day the transition period for the implementation of the Securities and Futures Commission’s (SFC) Manager-in-Charge regime (MIC Regime) for licensed corporations ended, the Hong Kong Monetary Authority (HKMA) announced the introduction of a new Management Accountability Initiative (MAI) aimed at increasing the accountability of the senior management of Hong Kong registered institutions (RIs

The Hong Kong Government and the Securities and Futures Commission (SFC) have announced the introduction of mandatory electronic filing (Mandatory E-Filing) of disclosure of interests (DOI) notifications and reports under Part XV of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) (SFO) with effect from 3 July 2017.

?Senior management accountability has been a priority of global financial services conduct regulators in recent years. One need only look to a speech on 19 January 2017 by Mark Steward, director of enforcement and market oversight of the UK Financial Conduct Authority (FCA), when he declared that “senior managers ought to be responsible for happens on his or her watch. That’s what...

On 16 December 2016, the Securities and Futures Commission (SFC) issued a Circular to Licensed Corporations entitled Augmenting the Accountability of Senior Management (Circular). At the heart of the Circular was the introduction of a Manager-in-Charge regime (MIC Regime). The SFC’s intention behind the MIC Regime is to enhance, adapt, and supplement existing law and regulatory...

On 16 December 2016, the Securities and Futures Commission (SFC) announced the introduction of a Manager-in- Charge initiative (MIC Regime) aimed at increasing the accountability of the senior management of Hong Kong licensed corporations. The introduction of the MIC Regime follows the recent implementation of the Senior Managers and Certification Regime in the UK and, as with other...

On 21 March 2017, the Securities and Futures Commission (SFC) published its consultation conclusions on proposed changes to the position limit regime in Hong Kong. Expected to come into force on 1 June 2017, the changes include relaxing the existing stock options contracts position limit, raising the ceiling for the existing client facilitation excess position limit six-fold, and more...

On 1 March 2017, the Securities and Futures Commission (SFC) published a consultation paper on proposals to standardise the rules for prescribing professional investors. The Proposals - The SFC proposes to: allow a portfolio held in joint account(s) with persons other than associates and investment vehicle(s) owned by an individual to be counted in determining whether the...

The recent suspension of trading on Hong Kong based Bitcoin exchange Bitfinex following the apparent theft of approximately US$60m worth of bitcoins is the latest in a series of Bitcoin thefts. With Bitcoin still in its relative infancy, some jurisdictions have taken steps to integrate Bitcoin into their financial regulatory system, while regulators in Hong Kong have not yet done so. With...

On 14 June 2012, the Hong Kong Legislative Council passed the first cross-sector competition law in Hong Kong, the Competition Ordinance (Ordinance). The Ordinance created the Competition Commission (the Commission), which investigates and enforces the Ordinance; and the Competition Tribunal (the Tribunal), which hears actions in respect of the Ordinance. Today, 14 December 2015, three and a half

The traditional view of a syndicated loan has always been that an individual lender can take action to recover its share of the loan when due unless it is expressly prohibited from doing so. Unfortunately, a Hong Kong court in Charmway Hong Kong Investment Ltd & ors v Fortunesea (Cayman) Ltd & ors [2015] HKCFI 1308, 28 July 2015 recently reached the opposite view. While the decision is probably...

The financial stakes in investment treaty arbitration are high. The growing complexity of investment treaty proceedings, coupled with the increasing sophistication of the parties, is pushing up average party costs, which now stand at approximately USD4.5m. Against this backdrop, the cost of bringing – or defending – an investment treaty proceeding is increasingly a substantial investment in...