Latham & Watkins LLP (JD Supra Hong Kong)

The Hong Kong government has issued its widely anticipated consultation conclusions on a new framework to regulate virtual asset exchanges. On 21 May 2021, the Hong Kong Financial Services and the Treasury Bureau (FSTB) issued its consultation conclusions (Conclusions) on the introduction of a new regulatory framework in Hong Kong to licence and regulate virtual asset exchange (VA Exchange)...

The paper proposes standards of conduct for intermediaries involved in bookbuilding and placing activities in ECM and DCM transactions. On 8 February 2021, the Securities and Futures Commission of Hong Kong (SFC) published a consultation paper on (i) the Proposed Code of Conduct on Bookbuilding and Placing Activities in Equity Capital Market (ECM) and Debt Capital Market (DCM) Transactions...

Regulators consult on an investor identification regime and outsourcing requirements, and issue guidance on electronic storage of regulatory records and environmental risk management - This blog post summarises key regulatory developments in Hong Kong and Singapore during December 2020, including: ..The SFC’s consultation on an investor identification regime for the securities market ..T

Counsel and arbitrators give their take on why Hong Kong remains a world class arbitral seat of choice. Key Points: ..Hong Kong courts continue to be independent and take a pro-arbitration and pro-enforcement approach that facilitates the arbitral process. ..HKIAC Arbitration Rules are innovative and progressive, allowing for cost-effective and efficient resolution of disputes,...

The consultation paper proposes to increase the Main Board Profit Requirement by 150% or 200%. The Stock Exchange of Hong Kong Limited (the Exchange) has published a Consultation Paper on the Main Board Profit Requirement (the Consultation Paper) proposing to increase the profit requirement to align with the market capitalisation requirement for Main Board applicants. Since the introduction of

Regulators propose new regulations for virtual asset exchanges and enhanced customer identity verification requirements, and launch an innovative commercial data interchange. This blog post summarises key regulatory developments in Hong Kong and Singapore during November 2020, including...

Hong Kong government issued a consultation to implement a new regulatory framework requiring virtual asset exchanges to be regulated by the SFC - Key Points: ..The Hong Kong Financial Services and the Treasury Bureau (FSTB) has issued a consultation paper outlining a new regulatory framework that will bring operators of virtual asset exchanges within the formal regulatory perimeter of the...

Hong Kong’s Securities and Futures Commission’s introduces new licensing regime to regulate previously unregulated markets and restates expectations regarding security token offerings. The second day of Hong Kong Fintech Week regulators and market participants from across the fintech industry spectrum featured more speeches and discussions.

The HKMA introduces a new data sharing initiative, reported on the central bank digital currency initiative, and outlined regtech plans. The fifth annual Hong Kong Fintech Week conference kicked off with speeches and panels from both Hong Kong and international regulatory representatives, in addition to key market players.

Regulators consult on anti-money laundering guidelines and issue guidance on cybersecurity, best execution, and senior management accountability. This blog post summarizes key regulatory developments in Hong Kong and Singapore during September 2020, including...

Amidst its continued regulatory focus on money laundering and terrorist financing risks, the SFC seeks to clarify and consolidate guidance for licensed firms. On 18 September 2020, the Hong Kong Securities and Futures Commission (SFC) published a consultation paper proposing a number of amendments to its Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) for SFC-lic

Regulators are consulting on how to enhance trust business regulation, introduce new omnibus legislation, and encourage best practices in sustainable banking. This blog post summarises key regulatory developments in Hong Kong and Singapore during July 2020, including...

Regulators seek to expand market connectivity for wealth management products and enhance financial institutions’ environmental risk management. This blog post summarises key regulatory developments in Hong Kong and Singapore during June 2020, including...

The SFC’s consultation conclusions carve out non-financial groups and multilateral portfolio compression services. On 12 June 2020, the Securities and Futures Commission (SFC) published its conclusions (Consultation Conclusions) on its December 2017 consultation paper that proposed modifications to the scope of regulated activities (i.e., activities for which a licence from the SFC is required)

Regulators seek to address “rolling bad apples”, bank culture reform, and cryptocurrency derivatives. This blog post summarises key regulatory developments that took place in Hong Kong and Singapore in May 2020, as regulators in both jurisdictions issued regulatory pronouncements across a spectrum of topics - from the Hong Kong Monetary Authority (HKMA) consulting on proposals to address the...

The new guidance offers improved clarity on disclosure in the prospectus and suitability for listing of biotech companies. Since the implementation of the new listing regime for biotech companies under Chapter 18A of the Main Board Listing Rules (the Listing Rules) on April 30, 2018, The Stock Exchange of Hong Kong Limited (the Exchange) has offered more diversified choices for investors....

Hong Kong regulator declares that the disclosure of personal data of potential COVID-19 carriers is permissible under law. COVID-19 is having a profound impact not only on the way the world interacts socially, but also in the way it interacts in business. Businesses are choosing to protect the health and well-being of their employees by vetting the travel histories and health status of...

Market participants must treat clients fairly and exercise care when recommending potentially volatile or illiquid products. In response to ongoing volatility in local and international markets caused by the COVID-19 pandemic, on 27 March 2020, the Hong Kong Securities and Futures Commission (SFC) published two circulars reminding fund industry participants and SFC-licensed intermediaries of...

Potential amendments to the PDPO would impose much stricter controls on organisations that process personal data of individuals located in Hong Kong. Key Points: ..On 20 January 2020 the Legislative Council debated potential changes to the Personal Data (Privacy) Ordinance (PDPO), prompted by a Panel on Constitutional Affairs’ discussion paper, which outlines five material potential changes to...

SFC outlines new regulatory framework for virtual asset trading platforms, HKMA highlights recent FinTech initiatives, and PBOC discusses China’s forthcoming central bank digital currency. The fourth annual Hong Kong FinTech Week conference kicked off with a major announcement from Mr. Ashley Alder, Chief Executive Officer of the Securities and Futures Commission (SFC), who introduced a new,...

If adopted efficiently, the PDPC’s Ethical Accountability Framework should help organizations to demonstrate and enhance trust with individuals. In October, 2018, Hong Kong’s Privacy Commissioner for Personal Data (PCPD) presented the findings of an inquiry into the ethics of data processing, commissioned by the PCPD with the help of the Information Accountability Foundation (IAF).

The HKMA and SFC are jointly consulting on further enhancements to OTC derivatives reporting and clearing obligations. Key Points: ..The HKMA and the SFC have proposed mandating the use of UTIs for the reporting obligation, revising the list of jurisdictions designated by the SFC for masking relief in respect of the reporting obligation, and updating the FSP list in respect of the clearing...

Hong Kong becomes the first and only jurisdiction outside mainland China where mainland China courts may grant interim measures in aid of arbitral proceedings. Key Points: ..Pursuant to the new mutual arrangement between Hong Kong and mainland China, any party to “arbitral proceedings in Hong Kong” may, before or after commencing arbitration, apply to the competent mainland Chinese courts to...

Multilateral conventions relating to arbitration - Is your jurisdiction a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? Since when has the Convention been in force? Were any declarations or notifications made under articles I, X and XI of the Convention? What other multilateral conventions relating to international commercial and...

The TMA is now consulting on technical refinements to the HONIA, the proposed alternative reference rate to the HIBOR. Key Points: ..In July 2014, the FSB issued recommendations on reforming interest rate benchmarks, following cases of market manipulation and other misconduct that damaged confidence in the integrity of IBORs, the interest rates at which banks lend to and borrow from one...

Sponsors should maintain best practices in IPO engagements in light of increased enforcement action and regulatory scrutiny from the SFC. Key Points: ..In March 2019, the Hong Kong securities regulator, the Securities and Futures Commission, issued record-breaking fines (together with other disciplinary actions) against several sponsors on Hong Kong IPOs dating back to 2009. ..This...

New provisions allowing third-party funding of arbitration come into force on 1 February 2019. Key Points: ..The key provisions of the Arbitration and Mediation Legislation (Third-Party Funding) (Amendment) Ordinance 2017 allowing third-party funding of arbitration come into force on 1 February 2019. ..The Amendment Ordinance confirms that the laws of maintenance and champerty do not...

The SFC has outlined its regulatory approach to the management and distribution of virtual asset funds and virtual asset exchanges. Key Points: ..Investor protection is paramount and the SFC is taking steps to tighten its supervision of funds that invest in virtual assets and distributors of such funds. ..SFC-licensed asset managers and fund distributors should only sell virtual asset...

Amendments to the administered arbitration rules address technology, third party funding, time limits, and other key mechanisms. Following the success of the 2013 HKIAC Administered Arbitration Rules (the 2013 Rules), the Hong Kong International Arbitration Centre (HKIAC) has updated its administered arbitration rules to keep pace with market change and current best practices and current best...

The Hong Kong Competition Tribunal has ruled for the first time on the extent of the Competition Commission’s discovery obligations in enforcement proceedings. The Speed Read - A recent Hong Kong Competition Tribunal (Tribunal) decision offers the first judicial guidance on issues of discovery, public interest immunity and privilege under Hong Kong competition law. The decision, Competition...