The Stock Exchange of Hong Kong Limited (SEHK) has recently published consultation conclusions on proposed enhancements to the listing rules (LRs) relating to disciplinary powers and sanctions.
It will implement the LR enhancements as proposed in the consultation paper, except in relation to the imposition of secondary liability, where a note will be added to the LRs to clarify the position in relation to solicitors and certified public accountants in private practice. The revised LRs will come into effect on 3 July 2021. Continue reading
In October, we launched a brand new podcast channel, Financial Services Disputes & Regulation, providing regular bite-sized broadcasts covering both litigation and regulatory developments for banks and other financial institutions. You can subscribe to the new channel here, or on all the usual platforms including Apple and Spotify.
We are pleased to announce the release of the first episode of Regulation in Focus, our podcast series of short, sharp insights into regulatory issues that matter to you. Our first episode, a bumper cross-border edition featuring partners Hannah Cassidy (Hong Kong), Natalie Curtis (Singapore) and Chris Ninan (London), focuses on information flows in cross-border regulatory investigations.
On 31 October 2019, the Hong Kong Securities and Futures Commission (SFC) published a circular (Circular) on the use of electronic data storage providers (EDSPs) by licensed corporations (LCs).
Welcome to the Autumn 2019 edition of our corporate crime update – our round up of developments in relation to corruption, money laundering, fraud, sanctions and related matters. This bumper edition covers a number of jurisdictions, and includes content from the summer break.
On 24 September 2019, the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) published its study on the implications of benchmark reform across the East Asia and Pacific region (Study), including the effects of LIBOR discontinuation, the EU Benchmarks Regulation (BMR) and the ongoing reform of local benchmarks.
The Study provides important insight into market participants’ varying levels of awareness of and preparedness for benchmark reform, as well as valuable guidance as to future regulatory developments we are likely to see from regulators keen to ensure regional markets are well equipped to handle these reforms. The Study also refers extensively to Herbert Smith Freehills’ market-leading work on the BMR with ASIFMA.
Financial services firms conduct their business activities across markets and borders, often performing services and holding data in locations other than those in which they interact with their clients. Over a decade after the financial crisis, their regulators remain under sustained public and political pressure to improve customer outcomes and punish poor conduct. When issues arise, those regulators frequently need to seek assistance from their global counterparts to be able to unravel what has occurred, irrespective of where it took place.
Understanding how and when regulators interact with each other and with firms across borders, how firms are required, or expected, to respond, and how to handle multiple proceedings in different jurisdictions, is more critical than ever.
This fourth edition of “The Long Arm of Regulation: Responding to Cross-Border Financial Services Investigations”, Herbert Smith Freehills’ guide to cross-border financial services investigations, gives an overview of how to approach these issues, and aims to assist firms in navigating the differing regimes across 15 key jurisdictions, including, for the first time in this edition, South Africa. The guide covers a range of important topics, including the regulators’ breadth of powers, mechanisms for obtaining – and withholding – information, consequences for failing to comply, and the management of competing confidentiality and reporting obligations.
In producing this publication, we have drawn on the expertise of our financial services regulation practice across our international network of offices and through our formal alliance with Prolegis (Singapore). In addition, we are enormously grateful for contributions from law firms Anderson Mori & Tomotsune (Japan), Stibbe (the Netherlands) and Homburger (Switzerland).
The Securities and Futures Commission (SFC) has recently issued a circular on the outcome of its survey and inspection of selected fund managers regarding their liquidity risk management practices.
The SFC noted inadequacies and deficiencies in a number of areas. These are set out in the appendix to the circular, together with observations and examples of such inadequacies and deficiencies, and the SFC’s expected standards (see overview below).
Last Friday, the Securities and Futures Commission (SFC) issued a circular to announce the launch of a key risk indicator (KRI) platform to collect and analyse KRI data from selected licensed corporations (LCs).
The platform is aimed at facilitating the SFC’s supervision of global firms which are exposed to the changing dynamics of global markets. It supplements the SFC’s existing monitoring tools and enhances the SFC’s information gathering and analytical capabilities to better identify and manage existing and emerging risks.
Indonesia’s Corruption Eradication Commission (KPK) has charged Emirsyah Satar, the former head of state airline, Garuda, with money laundering and ordered his detention for 20 days. Emir Satar has been caught up in the KPK’s two year investigation, a spin-off of the SFO’s major investigation into Rolls-Royce. The SFO and Singapore’s Corrupt Practices Investigation Bureau have assisted the KPK with its investigation.
The Hong Kong Stock Exchange has finalised its proposed amendments to the Listing Rules to tighten restrictions on backdoor listings and continuing listing criteria. The changes are aimed at combatting listed company shell activities which have been the subject of ongoing regulatory scrutiny in recent years. Continue reading