SFC published a circular warning against facilitating the setting up or operation of securities margin financing arrangements by unlicensed persons to circumvent regulatory requirements.
SFC has observed that some licensed corporations carrying on asset management activities may have aided and abetted unlicensed affiliates or third parties to provide securities margin financing in the guise of investments. SFC warns that the provision of margin financing in the guise of investments under such an arrangement is illegal. These suspected margin financing arrangements are set up or operated in different forms. Additionally, the HKMA letter announcing the release of this SFC circular states that registered institutions should pay attention to the issues highlighted in the circular and be mindful that aiding and abetting the conduct of illegal activities may also call into question the fitness and "properness" of a licensed/registered person.
Keywords: Asia Pacific, Hong Kong, Securities, Margin Financing Activities, Asset Management, HKMA, SFC
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PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
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SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
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