FCA asks banks to explain new overdraft rates

The FCA has today written to the UK’s major retail banks, asking them to provide evidence of how they have arrived at their new overdraft interest rates, which have all been set at around 40%. The FCA also asked the banks to clarify how they will deal with customers who could be worse off following … Read more

FCA publishes Dear CEO letters to asset managers and alternative investment firms

The FCA this week published two template ‘Dear CEO’ letters, one to asset managers and one to alternative investment firms, highlighting the FCA’s views on the key risks posed to customers and markets, and setting out its supervision strategy for the coming months. The FCA’s asset management portfolio comprises firms that predominantly directly manage mainstream … Read more

Hong Kong data protection reform: what you need to know

On 20 January 2020, the Constitutional and Mainland Affairs Bureau (CMAB) together with the Privacy Commissioner for Personal Data (Privacy Commissioner), published a consultation paper raising important data protection issues and proposing possible amendments to the Personal Data (Privacy) Ordinance (Cap. 486) (PDPO), after having reviewed the existing data protection regime in Hong Kong. These include possibly introducing a mandatory data breach notification mechanism, requiring data users to specify a retention period for personal data collected, raising the sanctioning powers of the Privacy Commissioner as well as potentially making data processors more accountable. Read more

HKMA shares initial observations from banks’ self-assessment on culture

The Hong Kong Monetary Authority (HKMA)’s executive director for banking conduct, Mr Alan Au, recently delivered a speech on bank culture at the 1LoD Summit in Hong Kong. Although the HKMA is still in the process of reviewing the self-assessments submitted by the 30 AIs, Mr Au took the opportunity of the 1LoD Summit to provide the HKMA’s initial observations on how authorised institutions have approached culture reform, and highlighted some good practices and common issues of concern observed. Read more

Regulation in Focus Podcast Episode 3 – January 2020

The third episode of Regulation in Focus, our podcast series of short, sharp insights into regulatory issues that matter to you, features Katherine Dillon and Emma Reid from our non-contentious financial services regulatory practice in London, discussing the role that equivalence might play in accessing EU markets post-Brexit. Read more

Malaysia joins digital banking revolution – Bank Negara Malaysia issues Exposure Draft on Licensing Framework for Digital Banks

On 27 December 2019, Bank Negara Malaysia (BNM) issued an exposure draft on the Licensing Framework for Digital Banks (Exposure Draft). According to BNM, up to five licences may be issued to applicants to establish digital banks that conduct either conventional or Islamic banking business in Malaysia. BNM’s move to promote the development of digital banks is in line with the direction taken by regulators in Singapore and Hong Kong, which have each issued similar licensing frameworks in the past two years. Read more

SFC clarifies licensing obligations of PE firms and family offices which conduct business in Hong Kong

On 7 January 2020, the Securities and Futures Commission (SFC) issued two circulars to clarify aspects of the licensing obligations applicable to private equity (PE) firms and family offices which conduct business in Hong Kong. The circulars have been issued in response to enquiries from industry participants and their professional advisers. An overview of the key aspects covered by the circulars is set out below. Read more