Events listed in Securities and Futures Ordinance
Circular to licensed corporations on prudent risk management in providing IPO ...
ID 25711
With relation to the new FINI platform to „streamline and digitalise the IPO settlement process in Hong Kong“ expected to launch on 22 November 2023, the SFC has posted a circular reminding LCs to continuously manage their risks when providing IPO services. Prudent credit risk management – Ensuring that clients have sufficient funding to settle IPO obligations – Setting conservative and realistic credit limits ...
Circular on tokenisation of SFC-authorised investment products
ID 25619
On November 2, 2023, the Securities and Futures Commission of Hong Kong (SFC) issued a circular addressed at all asset management firms engaged in the trading or distribution of investment products. *The circular outlines the requirements under which the SFC would consider permitting the tokenization of investment products under Part IV of the Securities and Futures Ordinance* for offering to the public in Hong ...
Circular on intermediaries engaging in tokenised securities-related activities
ID 25616
The Securities and Futures Commission (SFC) has issued a new circular in response to the growing interest among financial institutions in tokenizing traditional financial instruments. According to the SFC, tokenization involves recording claims on assets from traditional ledgers onto a programmable platform using distributed ledger technology (DLT). While the SFC acknowledges the potential benefits of tokenization in increasing efficiency, transparency, reducing settlement ti ...
SFC consults further on proposed amendments for implementing an uncertificated ...
ID 25597
In view of the gradual introduction of an Uncertificated Securities Market (USM) regime under which investors will be able to hold securities in their own names (legal title), but yet without paper (please see relating EventID 6244 and EventID 20477), the Securities and Futures Commission of Hong Kong, SFC, has launched a new consultation in this context. Specifically, **the Commission seeks feedback on proposed ...
Circular on distributors providing additional returns and other services or ...
ID 25468
The Securities and Futures Commission (SFC) has issued a circular to address concerns about the practices of licensed corporations and intermediaries in offering SFC-authorized funds. The circular follows a recent review of such practices and startling observations in this context. For example, some distributors have been enticing clients with guaranteed returns and incentives that divert attention from understanding the risks of these funds. Some ...
Joint circular on intermediaries’ virtual asset-related activities
ID 25426
The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have issued a joint circular addressed at financial market intermediaries engaged in virtual asset-related activities. The circular thereby provides guidance and updates on the regulatory approach for distributing virtual asset-related products (VA-related products) and providing virtual asset dealing services to investors. #### *The key issues addressed in the circular ...
SFC consults on market sounding guidelines
ID 25282
In view of the significance of market soundings in gauging the interest of investors and to ensure a level playing field of all parties involved, the Securities and Futures Commission of Hong Kong, SFC, has launched a consultation on proposed new guidelines for market soundings. The launch comes after a review of market conduct of involved intermediaries and the SFC’s concerns over inside information ...
G.N. 5778 of 2023
ID 25155
Following the publication of a consultation conclusion paper by the Securities and Futures Commission of Hong Kong, SFC, on revisions to the Codes on Takeovers and Mergers and Share Buy-backs (EventID 23114), the revised version of the Codes was now officially gazetted via General Note (GN 5778) to be effective on September 29, 2023. For a detailed description of the enclosed changes in the ...
SFC-HKMA joint product survey in 2022 shows shifts to investments in money market ...
ID 25089
The Securities and Futures Commission of Hong Kong, SFC, and the Hong Kong Monetary Authority, HKMA, have published the results of a joint survey on „the Sale of Non-exchange Traded Investment Products 2022“ which was announced in an SFC circular (Circular SFO/IS/039/2022) in December 2022. Please also see EventID #18670 in this context for more information. The survey, which is conducted annually and mandatory ...
SFC amends takeovers and share buy-backs codes
ID 25031
Following a corresponding consultation in May this year (EventID 21316), the Securities and Futures Commission of Hong Kong, SFC, has published a consultation conclusion paper on proposed revisions to the Codes on Takeovers and Mergers and Share Buy-backs. #### Background In its consultation, the SFC proposed several revisions aimed at enhancing transparency and fairness in takeover and merger transactions and ensuring that shareholders are ...