GCC Capital’s Post

In the first few months of 2024, the Securities and Futures Commission of Hong Kong (SFC) has continued to enhance its enforcement actions against individuals for market misconduct. This is in line with the SFC’s Strategic Priorities for 2024 to 2026, one of which is to further strengthen market resilience in Hong Kong as an international finance centre and mitigate the risk of serious harm to Hong Kong’s markets. Particularly, the SFC will leverage its surveillance capabilities to spot and crack down on market misconduct. Our Partner Alfred Leung and Of Counsel Tiffany Lee explain the key points on SFC’s recent enforcement trends, highlight their implications, and outline the key takeaways and considerations for licensed persons and individual investors. Read the full article here for more details: https://lnkd.in/gwjfscr8 #compliance #regulation #sfc #hongkong #enforcement

⚠️Attention HK Fund Managers⚠️ The Securities and Futures Commission (SFC) recently issued a circular which identified deficiencies ❌ of asset managers, especially on conflict of interests, disclosures and risk management. Some of our clients already reached out to see what they need to do to enhance🛠️ disclosures in their fund documents📑 and improve on internal controls/ policies🛂. If you also want to discuss what needs to be done, please do not hesitate to contact our team.💬 William Wong Lester Fung Emily QIU Pinky Chan Maythavee Liu Janice Y. Vic Choi #regulations #assetmanagement #fundmanager #privatefunds #sfc

【GCC News】 The Securities and Futures Commission (SFC) has commenced criminal proceedings against Segantii Capital Management Limited (Segantii), its director and chief investment officer Mr. Simon Sadler, and former trader Mr. Daniel La Rocca for the offence of insider dealing in the shares of a company listed on the Stock Exchange of Hong Kong Limited prior to a block trade in June 2017. Key Take-away: 1. All licensed or registered persons should comply with the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code of Conduct). According to paragraph 9.3 of the Code of Conduct, a licensed or registered person should have procedures in place to ensure that its employees do not deal (for the benefit of the licensed or registered person, the employee or a client) in securities or futures contracts where the employee concerned effects the dealing in order to “front-run” pending transactions for or with clients, or on the basis of other non-public information which would be expected to materially affect prices of those securities or futures contracts and which is to be released to the market. 2. The main pieces of legislation in Hong Kong that are concerned with insider dealing are Sections 270 and 291 of the Securities and Futures Ordinance (SFO). It is very important that FIs and their officers and staff fully understand their respective responsibilities under the legislation. Please see the SFC’s statement here. https://lnkd.in/e5xfUryE #SFC #InsiderDealing #SegantiiCapitalManagement #HongKongFinance #MarketIntegrity #Compliance #CodeofConduct #SecuritiesandFuturesOrdinance

The Securities and Futures Commission (SFC) has published the Guidelines for Market Soundings (Hong Kong Market Sounding Guidelines) which will take effect on 2 May 2025, six months after their gazettal on 1 November 2024 Read more: https://cutt.ly/qeKjgaR2 #HKRegulations #MarketSoundings #SFC #FinancialServices #Confidentiality #InvestmentGuidelines #Compliance #HongKongFinance #MarketIntermediaries #SecuritiesLaw

Check out this insightful article on the HKMA rewrite. I encourage you to read it and share your thoughts

The Hong Kong #SFC has announced new #MarketSounding #Guidelines, effective May 2025, which will impact how #PrivatePlacements / #BlockTrading desks that manage sensitive pre-sounding discussions. These guidelines align closely with key principles established by regulators in other jurisdictions, such as the #FCA in the #UK and #ESMA in #Europe. The SFC’s rules focus on protecting Market Sounding Information (#MSI) - details like transaction size, pricing (e.g. premium/discount), timing, the identity of the Market Sounding Beneficiary, and the name of the security - during pre-sounding discussions. These details must be handled with safeguards to prevent misuse or leakage. For private placements / blocks trading - this means revisiting how pre-transaction conversations are conducted and ensuring clear processes and controls are in place. COMPARISON TO UK & EU GUIDANCE Hong Kong’s approach is broadly consistent with the #FCA and #ESMA, ensuring clear processes for managing sensitive information. Common themes across the three jurisdictions include: #Confidentiality - Protect sensitive details like transaction size and timing to prevent leaks or misuse. #Scripts - Use standardised scripts to guide conversations and secure consent BEFORE sharing specifics. #Recordkeeping - Maintain clear records of consents, communications, and individuals with access to sensitive information. #Cleansing - Recognise when information becomes "stale" (e.g. after deal completion or cancellation) to release confidentiality obligations. #Recipient #Obligations - Recipients of market soundings must independently assess whether they hold insider information and refrain from trading if they do. #FnzMarkets #FnzGroup #FNZ This post is for informational purposes only and reflects my personal observations, not to be taken as legal advice.

Our Partner and Head of Financial Services Practice, Jeremy Lam, was quoted in the article titled “HK fund firms urged to 'get their house in order' as SFC steps up inspections” by Ignites Asia. Jeremy highlighted the importance of improving compliance measures for Hong Kong's asset managers due to increased scrutiny from the SFC. He noted that the SFC's heightened inspections might lead to disciplinary actions for executives found in violation. Jeremy also mentioned that the regulator is expected to act swiftly in implementing these changes. Read the article here: https://lnkd.in/gjSe_5Ey Learn more about our Financial Services practice here: https://lnkd.in/gqKmBm7v #Deacons #DeaconsFinancialServices #InvestmentFunds #SFC #Regulation #Compliance

The city’s asset and wealth management activities also rebounded this year. A previous SFC survey showed that the overall AUM of Hong Kong’s asset and wealth management business grew 2% year-on-year in 2023, while net fund inflows surged 342%. Investors outside mainland China and Hong Kong have consistently accounted for 54% to 56% of total AUM in the past five years, while 60% of the assets managed in Hong Kong are allocated to overseas markets.🇭🇰💰📈

Hong Kong regulators are removing “duplicative or non-essential” data elements for a more efficient reporting framework. https://hubs.li/Q02SVL6y0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02SVzTF0

Hong Kong regulators are removing “duplicative or non-essential” data elements for a more efficient reporting framework. https://hubs.li/Q02SVKXv0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02SVLG80