HKMA issues open letter for compliance with SFO
HKMA warns about the penalties for unregistered dealing
The Hong Kong Monetary Authority (HKMA) has sent an open letter to warn registered institutions of the importance of having adequate controls to ensure compliance with the prohibition of unregistered dealing under section 114(3) of the Securities and Futures Ordinance (SFO).
Registered institutions were also reminded to notify the HKMA promptly of changes to information related to relevant individuals pursuant to section 20(4) of the Banking Ordinance (BO).
Since the commencement of the SFO in April 2003, the HKMA has come across several cases of suspected unregistered dealings involving staff members of registered institutions, which has prompted this warning.
It suggests that registered institutions should put in place adequate control procedures to avoid possible unregistered dealings, including, among others, restricting certain staff members in receiving orders relating to securities or futures contracts from clients or execution of such orders; taking messages of telephone calls when the responsible relevant individuals are on leave or out of the office; to immediately report suspicion of any staff member to the compliance unit and where there is a reasonable grounds to believe unregistered dealing has taken place, the institution should immediately stop such practice and report the matter to the HKMA in writing as soon as practicable.
Registered institutions are also advised to ensure staff members who are seeking registration with the HKMA are fully aware that they are not allowed to engage in any regulated function of a regulated activity before proper registration; and to arrange regular training to staff on the implications of unregistered dealing and the importance of compliance with the relevant legal requirements.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
One year on, regulators still want a cure for bank runs
Broad support for higher outflow assumptions on uninsured deposits, but that won’t save insolvent banks
Watchlist and adverse media monitoring solutions 2024: market update and vendor landscape
This Chartis report updates Watchlist monitoring solutions 2022 and focuses on solutions for sanctions (name and transaction) screening and monitoring adverse media and its related elements
Basel Committee reviewing design of liquidity ratios
Focus on LCR and NSFR after Silicon Valley Bank and Credit Suisse, but assumptions may not change
Risk, portfolio margin, regulation: regtech to the rescue
A white paper outlining the complexity of setting the course for risk, margin and regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Most read
- SG trader dismissals shine spotlight on intraday limit controls
- Basel Committee reviewing design of liquidity ratios
- Too soon to say good riddance to banks’ public enemy number one