APAC Monthly Private Wealth Legal Developments – May 2026

SFC and HKMA issue circular guidance to VATPs, licensed corporations, registered institutions, and authorised institutions on provision of Relevant Stablecoin services

The SFC has issued a circular to set out its expected standards for licensed virtual asset trading platforms (VATPs) and licensed corporations when conducting activities in Relevant Stablecoins, i.e., ‘specified stablecoins’ under the Stablecoins Ordinance that are issued by a licensed entity under the Ordinance.

This circular also clarifies the application of the Guidelines for Virtual Asset Trading Platform Operators and the joint SFC-HKMA circular on intermediaries’ virtual asset (VA)-related activities (joint circular of 22 December 2023 together with supplemental joint circular of 30 September 2025 - see our previous update) to activities in Relevant Stablecoins.

The regulatory requirements applicable to both VATPs and licensed corporations include those relating to:

• liquidity and index requirements for tokens available for trading by retail clients;
• disclosure;
• assessment of client knowledge of VA;
• exposure limit; and
• suitability.

The regulatory requirements applicable only to licensed corporations include those relating to:

• partnering arrangement;
• dealing through VATPs;
• deposit and withdrawal arrangement; and
• ongoing reporting and notification.

The circular introduces revised licensing conditions for VATPs (see Appendix 1) and corresponding updates to the terms and conditions for licensed corporations and registered institutions that provide VA dealing and advisory services, and those that manage portfolios investing in VAs, as set out in Appendices A1 and A2. The versions showing tracked changes in Appendices B1 and B2.

In parallel, the HKMA has issued a circular to provide guidance to registered institutions on the requirements for their VA dealing services, advisory services or asset management services or the distribution of investment products with exposure to VAs, where the VA concerned is a Relevant Stablecoin. The guidance focuses on the applicability of the requirements in the SFC-HKMA joint circular referred to above to registered institutions' Relevant Stablecoin-related activities. The updates to the licensing or registration terms and conditions are in Appendices A1 and A2.

The HKMA has also issued another circular to provide guidance on authorised institutions' provision of dealing, advisory and portfolio management services involving Relevant Stablecoins, referring to the guidance to registered institutions above.

Finally, the SFC has updated the following as a consequence of the commencement of the stablecoin regime:

• Circular on SFC-authorised funds with exposure to VAs (superseding the 7 April 2025 version of the circular); and
• Frequently asked questions on the Code on Unit Trusts and Mutual Funds (Question 20G has been added). [27 May 2026]

HKMA publishes circular guidance on offering of financing for VA dealing, shared order book, and client VA withdrawals

The HKMA has issued a circular setting out the standards expected of registered institutions in offering financing for virtual asset (VA) dealing, participating in shared order books, and permitting client VA withdrawals.

This follows the SFC's circular dated 11 February 2026 (see our previous update), which enables licensed corporations providing VA dealing services under omnibus account arrangements with SFC‑licensed VA trading platforms to offer financing for VA dealing, and establishes expected standards for VA brokers participating in shared order books, as well as requirements for client VA safeguards by brokers permitting VA withdrawals.

• VA financing – Registered institutions providing VA dealing services may provide VA financing by observing similar standards expected by the SFC on VA brokers providing VA financing, as set out in the SFC's 11 February 2026 circular.
• Shared order book – Registered institutions providing VA dealing services to conduct agency trading of clients on a shared order book and offering retail clients access to the shared order book should follow the same guidance given by the SFC to VA brokers as set out in paragraphs 15–17 of the SFC's 11 February 2026 circular.
• Client VA withdrawals – To better safeguard client VAs, in addition to the HKMA’s prevailing requirements on related matters (such as e-banking, technology and operational risk management), the expected standards and measures regarding client VA withdrawals as set out in paragraphs 18–20 of the SFC's 11 February 2026 circular are also applicable to registered institutions that permit client VA withdrawals. [27 May 2026]

HKMA updates guidance on provision of custodial services for digital assets

The HKMA has reviewed and updated its guidance on the provision of custodial services for digital assets by authorised institutions (Als). The updated guidance reflects market and technological developments, including the implementation of the Stablecoins Ordinance, and supersedes the HKMA’s circular dated 20 February 2024 (see our previous update).

The updated guidance applies to AIs and subsidiaries of locally incorporated AIs conducting custodial activities in respect of ‘digital assets’, defined broadly to include virtual assets, tokenised securities, and other tokenised assets, as well as the means of access to such assets (such as private keys and seeds).

The updated guidance underscores the importance of robust security, governance, and operational controls to ensure that client digital assets held by AIs in custody are adequately safeguarded and that the risks involved are properly managed.

The HKMA has refined the expected standards in the guidance with reference to international standards and emerging industry practices, incorporating flexibility for AIs to put in place operational arrangements that are commensurate with the nature, features and risks of the digital assets under custody. These standards apply irrespective of whether custody is provided as a standalone service or in connection with other activities, including acting as an intermediary in virtual asset-related activities or distributing tokenised products.

The updated guidance covers the following areas:

• governance and risk management;
• segregation of client digital assets;
• safeguarding of client digital assets;
• delegation and outsourcing;
• disclosure;
• record keeping and reconciliation of client digital assets;
• ongoing monitoring; and
• provision of staking services for VAs from custodial services.

In terms of implementation, AIs or subsidiaries of locally incorporated AIs intending to provide digital asset custodial services are required to engage with the HKMA in advance and demonstrate compliance with the expected standards and requirements. Those already providing such services are expected to review and, where necessary, revise their systems and controls to align with the updated guidance. [27 May 2026]

HKMA issues circular guidance on banking services for individuals with higher risk profiles

The HKMA has issued a circular to provide guidance to authorised institutions (Als) in respect of the provision of banking services to individuals assessed as presenting higher risks.

The HKMA reiterates that access to basic banking services is integral to financial inclusion, and that such services should remain accessible to members of the public in Hong Kong, including customers with different risk profiles.

The HKMA notes from its supervisory reviews that some Als’ practices in managing higher-risk individuals - whose risk assessments may be based on factors such as past convictions, ongoing investigations or legal proceedings, or indications of potential involvement in fraudulent activities - have not adequately addressed these individuals’ genuine needs for basic banking services. One situation might be where individuals are under investigation or prosecution but have not been convicted of an offence.

ln response, the HKMA has, following industry consultation, issued practical guidance (in an Annex) to support Als in adopting a risk-based approach that balances anti-money laundering and counter-financing of terrorism obligations with financial inclusion. The guidance covers the following areas:

• access to basic banking services;
• application of safeguards and limitations;
• pathways for review and transition; and
• customer communication.

Als (particularly those providing retail banking services to individual customers) are expected to take into account the expectations set out in the circular and determine their implementation approach based on their risk assessments, including the range of services to be offered, the extent of safeguards and limitations to be applied, as well as the level of scrutiny required to address identified risks. They should refrain from adopting a ‘one- size-fits-all’ approach. AIs should also maintain clear and proper communication with customers. [27 May 2026]

FSTB and SFC conclude consultations on VA advisory and management regimes and aim to introduce Bill into LegCo within 2026

The SFC and the Financial Services and the Treasury Bureau (FSTB) have published their jointconsultation conclusions on proposals to regulate virtual asset (VA) advisory and management service providers, with broad market support.

The licensing regimes for VA advisory and management service providers will follow the ‘same business, same risks, same rules’ principle, and their scope will be aligned with that of Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance. The consultations conclusions follow previous consultation conclusions published in December 2025 on proposals for establishing licensing regimes for VA dealers and custodian service providers (see our previous update).

The SFC and the FSTB will finalise the legislative proposals for establishing the VA advisory and management regimes under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, with a view to introducing a Bill into the Legislative Council (LegCo) within 2026.

The SFC will in due course engage pre-applicants to initiate the pre application process, conduct consultation on the regulatory requirements for the regimes, and issue such regulatory requirements, as appropriate.

Existing and prospective VA advisory and management service providers are strongly encouraged to engage with the SFC early to initiate pre-application discussions. This will allow entities to better understand the proposed regimes, facilitate more efficient licensing processes, and ensure their regulatory compliance under the new regimes. [26 May 2026]

SFC imposes lifetime ban on former RO (and MIC and director) of licensed corporation over misuse and misappropriation of client assets and provision of false or misleading information in investigation

The SFC has imposed a lifetime ban on Mr Paul Wan Kai Leung, former responsible officer (RO), manager-in-charge (MIC), and director of Nerico Brothers Limited (NBL).

The ban against Mr Wan is related to the SFC's earlier disciplinary actions against NBL and its director, Mr Jerff Lee Cheuk Fung, for (i) misuse of client assets, (ii) facilitation of misappropriation of client assets, and (iii) provision of false or misleading information to the SFC, leading to a revocation of NBL's licence and a lifetime ban on Mr Lee (see our previous update).

With regard to the facilitation of misappropriation of client assets, the SFC found that NBL had knowingly facilitated a scheme orchestrated by Mr Neo Ng Yu and his connected persons and entities, resulting in the misappropriation of approximately US$154 million of a client’s funds since January 2021. The SFC imposed a lifetime ban on Mr Ng and also disciplined other relevant parties (see our previous update).

The SFC determined that NBL's misconduct was directly attributable to the actions of both Mr Lee and Mr Wan. Specifically, Mr Wan had authorised the transfers of the client’s funds and executed documents that facilitated the misuse and misappropriation of these funds. He also personally breached the Securities and Futures Ordinance by knowingly giving false or misleading answers and explanations in his interviews with the SFC.

The SFC issued its decision to impose a lifetime ban on Mr Wan in August 2025. Mr Wan applied to the Securities and Futures Appeals Tribunal for a review of the decision in October 2025, but withdrew the application in May 2026. [26 May 2026]

HKMA sets out expected controls for authorised institutions on investment account opening and maintenance

The HKMA has issued a circular drawing attention to the SFC's recent circular on expected controls for account opening and maintaining relationships with clients in respect of investment accounts (see our previous update). The SFC circular shares deficiencies identified in the SFC’s review of account opening practices of certain licensed corporations (such as the acceptance of questionable or forged documents by some brokers during the account opening process), and the expected standards.

The HKMA expects registered institutions to have due regard to the SFC circular and put in place adequate policies, procedures, and controls to ensure compliance with all applicable requirements when carrying out regulated activities.

The HKMA further expects registered institutions to conduct an internal review as soon as practicable to detect if any questionable or forged documents have been accepted for account opening, and to close accounts that have been involved in the use of such documents, applying the same standards expected of licensed corporations as set out in the SFC circular.

In addition, the HKMA requires registered institutions to implement additional measures when opening and managing investment accounts of Chinese Mainland investors, similar to those set out in the SFC circular. These are set out in Annex 1 to the HKMA's circular, and include (among others) conducting reviews, closure of accounts opened using questionable or forged documents, and closure (or deactivation of the investment function) of zero-balance dormant accounts.

Frequently asked questions are set out in Annex 2 to assist in the implementation of the controls and measures in the HKMA circular.

The HKMA also directs registered institutions to guide eligible Chinese Mainland investors to make use of cross-boundary investment channels, including the Cross-boundary Wealth Management Connect and Stock Connect schemes, where appropriate.

In addition, the HKMA states that the same standards regarding providing services to investors outside Hong Kong as set out in the SFC circular apply to registered institutions. Any breaches of applicable requirements in overseas jurisdictions may constitute non-compliance with paragraph 12.1 of the SFC's main code of conduct and may give rise to reporting obligations and supervisory or enforcement actions by the HKMA or the SFC.

The HKMA circular also sets out general expectations for authorised institutions, including compliance with relevant anti-money laundering and counter-financing of terrorism requirements.

The HKMA will continue to monitor authorised institutions’ compliance through ongoing supervisory activities, including reviewing registered institutions' implementation of the additional measures for opening and managing investment accounts of Chinese Mainland investors. [22 May 2026]

SFC secures conviction for insider dealing involving misuse of inside information

The Eastern Magistrates’ Court has convicted an individual of insider dealing in a criminal prosecution brought by the SFC (see our previous update) after a 16-day trial. The conviction arose from the individual's misuse of inside information obtained in his capacity as chairman and controlling shareholder of a listed company, and his decision to advise his sister to trade the company’s shares before the information was publicly disclosed.

The Court heard that, during negotiations in 2017 for the sale of the individual's controlling stake of the listed company, he became aware of price-sensitive and non-public information, including the signing of a memorandum of understanding and receipt of HK$10 million as earnest money from a potential buyer. Upon receiving the earnest money on 25 August 2017, he transferred HK$2 million to his sister, who began purchasing shares in the listed company on the same day. The individual also sent multiple WhatsApp messages to his sister from 30 August 2017 onwards advising on the timing and price to buy the shares.

Between 25 August and 17 October 2017, his sister acquired over nine million shares in the listed company at prices below the market price following the announcement of the deal on 25 October 2017, paying for most of the shares with the funds provided by the individual.

The case has been adjourned to 9 June 2026 for sentencing. [22 May 2026]

SFC issues circular on account opening controls and measures to address forged documents and money laundering risks

The SFC has issued a circular to licensed corporations (LCs) setting out its expected controls for account opening and maintenance of client relationships, following a review of 12 securities brokers which identified significant deficiencies.

The deficiencies identified in the review included inadequate due diligence on account opening documentation, acceptance of questionable or forged documents during the account opening process, and weaknesses in due diligence and ongoing monitoring of cross-border correspondent relationships with overseas intermediaries.

• These deficiencies raise concerns about the potential misuse of client accounts for suspicious or illicit transactions and expose LCs to heightened money laundering and terrorist financing risks.
• Further details of the deficiencies and the standards expected of LCs are set out in Appendix A to the circular. LCs should conduct an internal review as soon as practicable to detect if any questionable or forged documents have been accepted for account opening, in accordance with item 1 of Appendix A, and close the accounts that have been involved in the use of such documents.

The circular also sets out additional measures for opening and managing investment accounts of Chinese Mainland investors (see Appendix B). These include:

• Closure of investment accounts that were opened using questionable or forged documents;
• Closure of zero-balance dormant investment accounts; and
• Obtaining written investor declarations and requiring settlement and fund deposits and withdrawals to be conducted exclusively through bank accounts held in the clients’ own names with eligible banks when opening new investment accounts.

LCs are also reminded to comply with all relevant legal and regulatory requirements in both Hong Kong and the applicable jurisdictions when they provide services to investors outside Hong Kong.

A set of frequently asked questions is also provided (in Appendix C) to assist LCs’ implementation of the controls and measures mentioned in the circular.

Senior management are ultimately responsible for maintaining appropriate standards of conduct and robust internal controls. They should promptly address the issues raised in the circular, strengthen LCs’ controls, and ensure all staff members receive proper training to perform their duties effectively. Failure to fulfil these responsibilities may result in supervisory or enforcement action taken by the SFC.

The SFC will continue to monitor LCs’ compliance through off-site monitoring, on-site inspections and thematic reviews, as well as collaborate with regulatory authorities in other jurisdictions to address misconduct. [22 May 2026]

Government to amend legislation to implement Crypto-Asset Reporting Framework and revised Common Reporting Standard

The Government has gazetted the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026, and will introduce the amendment bill into the Legislative Council (LegCo) for first reading on 3 June 2026.

As part of efforts to enhance tax transparency and combat cross-border tax evasion, the amendment bill seeks to (see further details in the LegCo Brief):

• Implement the Crypto-Asset Reporting Framework and the latest amendments to the Common Reporting Standard developed by the Organisation for Economic Cooperation and Development (OECD); and
• Make technical amendments for the implementation of the global minimum tax under OECD’s Base Erosion and Profit Shifting 2.0 framework.

The Government has taken into account the views from stakeholders (including professional bodies and the financial and crypto-asset sectors) from the public consultation launched in December 2025 (see our previous update). The stakeholders generally supported the legislative proposals.

The OECD published the Crypto-Asset Reporting Framework in 2023 to provide for annual automatic exchange of tax information on crypto-asset transactions with relevant jurisdictions, and incorporated into the Common Reporting Standard new digital financial products and enhanced reporting and due diligence requirements.

Under the proposed regime, crypto-asset service providers with a reporting nexus with Hong Kong will be required to register with the Inland Revenue Department (IRD) and comply with requirements including due diligence, return filing and record keeping.

The Government plans to implement the new regime in 2027. Subject to the implementation progress of relevant jurisdictions, Hong Kong plans to commence the automatic exchange of tax information on crypto-asset transactions in 2028 and implement the revised Common Reporting Standard in the same year. The IRD will issue guidance in due course and provide technical support to assist the industry in complying with the new requirements. [20 May 2026]

SFC warns public against fraudsters exploiting Investor Compensation Fund to target investors suffering losses

The SFC has warned the public to stay vigilant against fraudulent schemes exploiting the Investor Compensation Fund's name to target investors who have previously suffered investment losses.

Recent cases reported to the SFC involved fraudsters approaching such individuals, often victims of schemes orchestrated by the same syndicates, and falsely claiming that they were eligible to recover their losses through the Investor Compensation Fund. The fraudsters typically impersonated SFC executives or posed as legal professionals and sought payment of purported 'deposits' or 'handling fees' to arrange 'compensation'.

The SFC emphasises the following:

• Investors are not charged any fees for lodging claims against the Investor Compensation Fund.
• The fund only compensates monetary losses arising from a default by a licensed intermediary or authorised financial institution in Hong Kong in relation to securities and futures contracts traded on the HKEX or under the Northbound link of Stock Connect.
• The fund does not cover losses resulting from share price fluctuations, poor investment performance or scams perpetrated by unlicensed entities.
• The SFC does not contact investors via social media or instant messaging platforms to solicit payments for compensation claims.
• Investors should consult the SFC or the Investor Compensation Company Limited directly via official channels if they are unsure about the legitimacy of persons approaching them regarding compensation. [19 May 2026]

SFC updates intermediaries on second HKEX market rehearsal for backbone network upgrade for securities market systems

The SFC has issued a circular to intermediaries to provide updates on the HKEX's second market rehearsal for its backbone network upgrade for securities market systems (see our previous update alluding to the market rehearsals).

The second market rehearsal will be conducted on 30 May 2026, and is aimed at validating connectivity by simulating daily operations over the enhanced HKEX backbone network.

• All relevant regulated intermediaries (RRIs) which use the Secure File Transfer Protocol channel to submit the BCAN-CID Mapping File and reporting forms to the Stock Exchange of Hong Kong Limited (SEHK)’s data repository under the Hong Kong Investor Identification Regime are invited to participate.
• Participation is mandatory for exchange participants and China Connect exchange participants. Other RRIs (i.e., non-exchange participants) are strongly encouraged to participate to ensure operational readiness and a seamless transition.

Further information and guidance can be found in an SEHK circular. RRIs are advised to review the circular and remain alert to subsequent communications from the SFC and the HKEX regarding this initiative.

Details on subsequent market rehearsals and post-release testing will be announced in due course following completion of the second market rehearsal. [19 May 2026]

SEHK announces effective date of 6 July 2026 for amendments to SSE and SZSE trading rules and provides update on SSE auction trading system upgrade

The SEHK has issued a circular to inform China Connect exchange participants (CCEPs) and trade-through exchange participants (TTEPs) that, following a consultation which ended on 17 April 2026 (see our previous update), the amendments to the trading rules of the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) will take effect on 6 July 2026. Details of testing arrangements will be announced in due course. CCEPs and TTEPs should assess the implications of the amendments on their operations and systems.

Separately, the SSE is planning to upgrade its auction trading system for Northbound Trading, with no technical or interface changes required by CCEPs. The implementation timeframe and testing arrangements will be announced once confirmed by SSE. The upgraded system is now accessible in the end-to-end testing environment, allowing CCEPs to verify connectivity as needed. [7 May 2026]

HKEX appoints Head of Commodities to drive regional commodities strategy

The HKEX has announced the appointment of Mr Frank Zhang as Managing Director, Head of Commodities, to lead the strategic development of its commodities franchise in the region.

In his new role, Mr Zhang will be responsible for driving product development, broadening market participation, and strengthening the HKEX’s leadership in the Chinese Mainland and Asia Pacific commodities markets. He will also oversee the strategic direction of Qianhai Mercantile Exchange (an HKEX subsidiary), with a view to capturing growth opportunities in China’s commodity markets. In addition, he will work closely with the London Metal Exchange, a wholly owned subsidiary of the HKEX.

The appointment forms part of the HKEX’s broader efforts to develop a cohesive, long-term strategy for its regional commodities business, supporting the continued enhancement of the HKEX Group's multi-asset class ecosystem. [6 May 2026]

HKMA publishes Annual Report 2025 and Sustainability Report 2025

The HKMA has published its Annual Report 2025, which contains an overview of its work in 2025 and priorities and plans for 2026 and beyond.

The priorities for 2026 and beyond include (among others):

Risk-based supervisory focus

• a special focus on the adequacy of the credit risk management of authorised institutions (AIs), particularly their management of vulnerable accounts and problem loans, and their loan classification and provisioning;
• supporting AIs through the last mile of their journey to become operationally resilient;
• developing guidance for implementing the Basel Committee on Banking Supervision’s (BCBS’) new Principles for the sound management of third-party risk;
• developing the Cyber Resilience Testing Framework;
• discharging its duties under the Protection of Critical Infrastructures (Computer Systems) Ordinance;
• introducing a blueprint for enhancing the readiness of banks to transition to Post Quantum Cryptography;
• taking decisive action against fraud and scams, including promoting bank-to-bank information sharing;
• supporting the use of artificial intelligence and other technology to combat money laundering and terrorist financing;
• carrying out on-site examinations and off-site surveillance of the conduct of AIs in relation to high-yield and complex products, digital assets and related investment products, private credit-related investment products, underwriting and book-building activities of bonds, long-term insurance products, and premium financing activities;
• working with the SFC to provide guidance in relation to stablecoin activities;
• setting out regulatory requirements on the remuneration structures of AIs for the sale of participating policies with regular payment terms, comparable to those issued by the Insurance Authority;

Policy development

• developing policy proposals for implementing the BCBS' proposed machine-readable Pillar 3 disclosure requirements;
• updating various Supervisory Policy Manual modules regarding the capital framework, credit risk management, stress testing, and reporting requirements relating to external auditors of AIs;
• working on various amendments to the Banking Ordinance, including the modernisation of the HKMA’s enforcement powers;

Resolution

• taking forward various initiatives relating to resolution policy and execution, resolution planning, and cross-border co-operation;

Enhancing consumer protection, bank culture, and financial inclusion

• continuing anti-scam efforts, stepping up surveillance of fraud and scams, and issuing new guiding principles on the responsible and ethical use of alternative data in banking operations;
• monitoring the implementation by AIs of Phase 2 of the Mandatory Reference Checking Scheme and exploring further expansion of the scheme with fellow regulators;
• collaborating with the banking industry to introduce a new framework for facilitating relevant processes for individuals assessed as presenting higher risks;

Future-proofing the banking sector

• enhancing the Generative Artificial Intelligence Sandbox and Supervisory Incubator for distributed ledger technology;
• further supporting fintech adoption across the industry by rolling out Fintech Connect 2.0, organising additional events under the FiNETech series, and publishing practice guides and research papers;
• exploring the adoption of agentic artificial intelligence workflows to transform the HKMA's supervisory reviews and examinations;

Strengthening Hong Kong’s role as the leading offshore RMB hub and global fixed income and currency hub

• studying potential measures to further improve the availability of RMB liquidity for banks;
• promoting the development of more RMB products and ancillary services to address market needs; and
• working with the SFC to implement the relevant initiatives of its roadmap across the four pillars of primary market issuance, secondary market liquidity, offshore renminbi business, and next-generation infrastructure.

The HKMA has also issued its Sustainability Report 2025, which sets out the HKMA’s strategy and initiatives to strengthen the climate resilience of Hong Kong’s financial system, promote a more sustainable finance ecosystem, and reinforce its role as a responsible investor and sustainable organisation. [30 Apr 2026]

MAS: Valuation and risk management practices for fund management companies

MAS has published two information papers for fund management companies which are based on key findings from thematic inspections of selected fund management companies’ investment process across a range of investment strategies, including those conducted by external auditors appointed by MAS:

• Valuation practices: This information paper sets out MAS’ supervisory expectations for effective governance structures, frameworks, policies and procedures, and controls with respect to valuation of funds' assets.
• Risk management practices: This information paper sets out MAS’ supervisory expectations for effective governance structures, frameworks, policies and procedures, and controls for overseeing and managing investment process. [29 May 2026]

MAS: Good practices of market conduct controls in financial advisory industry

MAS has published an information paper which sets out the regulator’s supervisory expectations, as well as good practices observed, in the areas of:

• prospecting and advertising activities;
• advisory and sales processes;
• safeguards for sales to vulnerable customers; and
• complaints handling processes.

Firms are expected to benchmark their policies and processes against these practices and implement enhancements, commensurate with their business and risk profile, to strengthen their control frameworks. [26 May 2026]

ABS: PBIG to enhance customer onboarding for faster account opening

The ABS has announced that the Private Banking Industry Group (PBIG) will enhance client onboarding practices with the goal of reducing account opening times for most clients to within one month by end-2026. Currently, the industry median is five to six weeks, with longer processing periods for more complex cases. [25 May 2026]

MAS: Two individuals convicted for offences under the SFA

MAS has announced that in two separate cases, two individuals were convicted and sentenced to 10 weeks’ imprisonment, and to a fine of $200,000 respectively, for trading offences under the Securities and Futures Act (SFA). One individual was convicted for abetting false trading and was sentenced to 10 weeks’ imprisonment. This individual was separately convicted for conspiring to conduct false trading unauthorised trading and dishonestly receiving stolen property offences and was sentenced to 30 months’ imprisonment.

The other individual was convicted for insider trading. This individual has voluntarily contributed around $134,720 to charity and paid $88,852.68 to the State as disgorgement of share of profits from the offences. [20 May 2026]

MAS revokes entity’s Major Payment Institution Licence

MAS has revoked the Major Payment Institution Licence of an entity with effect from 14 May 2026. The entity is no longer permitted to provide digital payment token services in Singapore under the Payment Services Act 2019 from the same date. [20 May 2026]

MAS Speech: Preparing for a climate-resilient future

MAS has published a speech by its Deputy Chairman, and Minister for National Development, Chee Hong Tat, at the fifth edition of the Financing Asia’s Transition Conference. In the Deputy Chairman’s speech, he outlined the three key areas that MAS has been focusing on: catalysing capital for climate outcomes; strengthening market infrastructure and framework; and charting a road to resilience. [20 May 2026]

MAS concludes consultation on enhancements to PHS and streamlined framework for complex products

The MAS has published its response to the feedback it received on proposals to enhance the requirements for product highlights sheets (PHS) and streamline the distribution safeguards for complex products.

MAS will proceed with the proposed PHS enhancements, with further refinements that include clearer labelling for complex products. Investment-linked policies will now require a PHS and be classified as complex products.

MAS will also proceed to introduce pre-transaction alerts and make financial advice optional for complex products, with refinements to improve clarity and user experience:

• Investors who fail the Customer Knowledge Assessment must be alerted that complex products may not be suitable for them.
• All investors will be alerted that a product is complex, with an accompanying reminder to review product documents carefully, and to take a learning module on complex products or seek financial advice where needed.
• Investors will have the option of receiving a streamlined version of the pre-transaction alerts for subsequent transactions within the month, if they have traded in complex products during this period.

Legislative amendments to implement the changes will be consulted on at a later date. [15 May 2026]

MAS: Singapore has a robust framework for combatting financial crime according to FATF

MAS has published a release marketing the Financial Action Task Force’s (FATF’s) publication of its peer evaluation report of Singapore. The FATF has strongly affirmed that Singapore has a robust and effective framework and process to counter money-laundering, terrorism financing and proliferation financing (PF). The FATF noted that Singapore had:

• robust governance structures and a legal framework which were supported by operational measures to coordinate and cooperate;
• a sound understanding of risk across Government and industry, again supported by strong cooperation in the private and public sectors, and with international counterparts;
• robust, risk-focused supervision; and
• well-established law enforcement.

In common with the Mutual Evaluations of other jurisdictions, the FATF identified areas where Singapore can further strengthen its framework. For example, while Singapore’s financial institutions and virtual asset service providers generally demonstrate a good understanding and awareness of their PF risks and counter PF obligations, the level of PF risk awareness can be improved in certain sectors not traditionally subject to FATF obligations, such as representation offices of foreign flag States. [6 May 2026]

MAS undertakes proof-of-value to explore AI techniques to tackle financial crime

MAS has announced that it is working with partners in the banking industry, the Government Technology Agency of Singapore, and the Singapore Police Force to combat financial crime, using AI and machine learning (AI/ML) techniques to enhance scam detection capabilities. MAS is conducting a proof-of-value to explore AI/ML techniques for pre-emptive scam detection. By bringing together data from five banks, the exercise aims to build more robust and accurate AI/ML models that help identify higher-risk transactions and accounts. Prompt identification could enable timely assessment, intervention and reduction of customer losses to scams.

To support the work, MAS has provided industry partners with a secure data sharing environment governed by policies and protocols to safeguard customer information. It has also established a secure data sharing framework with industry participants to ensure that data will be protected and used responsibly. [4 May 2026]

SCM releases revised Equity Guidelines and Response Paper

The SCM has released its revised Equity Guidelines and Response Paper, introducing targeted enhancements to the primary market framework. This initiative is aimed at improving access to public listings for issuers, besides clarifying the roles and strengthening the differentiation of each market segment.

Key enhancements include:

• MAIN Market: Higher profit requirements, stronger financial reporting quality, greater flexibility in operating cash flow assessment and broader eligibility for infrastructure-type of listings; and
• ACE Market: Reinforced as a sponsor-driven market, with a minimum two-financial year post-listing track record before transfer to MAIN Market, removal of exemptions on sponsorship and moratorium, and the introduction of minimum public share allocation requirements.

The adopted proposals for the MAIN Market will take effect on 3 June 2026 through the revised Equity Guidelines. [28 May 2026]

SCM launches initiative to strengthen social impact financing

The SCM has announced the launch of the Social Exchange, a key deliverable under the Capital Market Masterplan’s 2026-2030 Sustainability Pillar to widen access to social impact financing. [25 May 2026]

SCM issues revised Guidelines on Recognized Markets for DAX

The SCM has issued an enhanced edition of its Guidelines on Recognized Markets. The revised Guidelines aim to:

• speed up product launches on regulated digital asset exchange (DAX) platforms by streamlining the approval process, while holding DAX operators to higher standards of accountability;
• fortify investor protection by strengthening client asset safeguards and enhancing the governance framework; and
• enhance the operational resilience of regulated DAX platforms by raising requirements for financial stability, shareholding and management proficiency.

In addition, DAX operators will be included as members of the Financial Markets Ombudsman Service in 2026.

The SCM also notes that it is closely monitoring the market and highlights recent administrative actions.

The amendments in the Guidelines are with effect from 20 May 2026. [20 May 2026]

SCM and Bursa Malaysia propose LEAP Market Enhancements

SCM and Bursa Malaysia Securities Berhad (Bursa Malaysia) have proposed enhancements to Bursa Malaysia’s LEAP Market, the main platform for early-stage and emerging companies. These proposed enhancements follow the LEAP Market 2.0 announcement made by Finance Minister II Datuk Seri Amir Hamzah Azizan in March 2026. They form part of a broader effort to improve access to financing for micro, small and medium enterprises (MSMEs) and support their growth through Malaysia’s capital market ecosystem.

The initiative supports the objectives under the SCM’s Capital Market Masterplan 20262030 and aligns with the SCM’s Catalysing MSME and Mid-Tier Company (MTC) Access to the Capital Market: 5-Year Roadmap (2024-2028). It also complements the national MSME and MTC development agenda.

The proposed enhancements under LEAP Market 2.0 include:

• alternative fundraising pathway for equity crowdfunding-funded and venture capital and private equity-backed Companies;
• simplified disclosure documents;
• broader investor participation;
• share-based payment to advisers; and
• seamless transfer from LEAP Market to ACE Market.

Bursa Malaysia has issued a public consultation paper to seek public feedback on the proposed enhancements. Responses are requested by 15 June 2026. [18 May 2026]

SECT consults on revisions to digital asset custody regulations and net capital requirements

The SECT has published a consultation on proposed principles for revising the net capital requirements and the digital asset custody regulations of digital asset business operators. The revisions aim to enable greater connectivity and collaboration among digital asset business operators, support local activities in digital asset trading and the custody of customers’ assets, and reduce reliance on foreign service providers. Responses are requested by 25 June 2026. [26 May 2026]

SECT reviews SPV Emergency Decree

The SECT has announced that it is seeking feedback to assist with its evaluation of the effectiveness of the Emergency Decree on Special Purpose Juristic Persons for Securitization B.E. 2540 (1997) (SPV Emergency Decree) and related regulations.

Responses are requested by 16 July 2026. [19 May 2026]

Green SECT consults on amendments to Thailand Future Fund project

The SECT has published a consultation on proposals to revise the principles for amendments to the Thailand Future Fund (TFF) project. The initiative is aimed at facilitating more flexible fund management, reducing the TFF’s cost burden, and providing appropriate protection of investors’ rights. Comments are requested by 15 June 2026. [14 May 2026]

SEBI: Ease of doing investments - Modified Norms for Nomination in Demat Accounts and Mutual Fund Folios

SEBI has published a Circular: Ease of doing investments - Modified Norms for Nomination in Demat Accounts and Mutual Fund Folios. This circular supersedes all the earlier circulars issued by SEBI with respect to nomination for demat accounts and mutual fund folios and such supersession shall be effective from the date of this circular.

This circular shall come into effect 1 September 2026. [29 May 2026]

SEBI consultation: Framework for strike prices of options contracts

SEBI has published a consultation regarding a proposed framework for managing strike prices in the derivatives segment. The measure is focused on enhancing the predictability and availability of option strikes during periods of significant intraday volatility.

Feedback is requested by 15 June 2026. [25 May 2026]

RBI sets up quantum technology expert committee

The RBI has announced the formation of an Expert Committee for a Quantum Secure and Adaptive Financial Ecosystem. The Committee’s terms of reference include:

• exploring and evaluating the potential benefits, risks and challenges in the financial sector;
• evaluating the financial sector's cryptographic inventory through a Cryptography Bill of Materials, assessing crypto agility and identifying the critical systems and processes most vulnerable to such threats;
• undertaking a cross-country analysis and assessing the adequacy of existing regulatory frameworks for safe deployment of quantum applications;
• evaluating industry preparedness for quantum-safe cryptography adoption, including the availability, scalability and maturity of vendor tools and solutions; and
• recommending a roadmap and framework to quantum-secure the Indian financial system.

The Committee will submit its report within six months from the date of its first meeting. [25 May 2026]

IFSCA: Guidance on use of voice broking services

IFSCA published Guidance on Availing of Voice broking services by IBUs from TechFin and Ancillary Service Providers registered with IFSCA, which advises IFSC Banking Units (IBUs) that they may, subject to satisfying certain conditions, avail voice broking services from entities registered as TechFin and Ancillary Service Providers which offer the service of voice broking.

This guidance shall come into force with immediate effect. [20 May 2026]

SEBI consults on enhancements in the existing STP Framework

SEBI has published a consultation paper to seek feedback on the enhancements in the existing straight-through processing (STP) framework to reduce the latency, costs and enhance service delivery for market participants.

Responses are requested by 9 June 2026. [19 May 2026]

RBI publishes Payment System Report, December 2025

The RBI has published the Payment System Report, December 2025. This report, in addition to analysing payments trends in India over the last five calendar years up to the second half of the calendar year 2025, covers major recent regulatory developments in the domestic payments ecosystem. It discusses the role of central counterparties in strengthening India’s financial stability by mitigating counterparty credit risk issues in cross-border payments and the efforts made by the RBI, as part of the G20 Roadmap, to improve efficiency and facilitate technical innovations. [18 May 2026]

SEBI updates Master Circular on Surveillance of Securities Market

SEBI has updated its Master Circular on Surveillance of Securities Market which incorporates the provisions of the following circulars:

• Framework of “Financial Disincentives for Surveillance Related Lapses” at Market Infrastructure Institutions dated 6 June 2024;
• Allowing subscription to the issue of Non-Convertible Securities during trading window closure period dated 30 December 2024; and
• Trading Window closure period under Clause 4 of Schedule B read with Regulation 9 of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 - Extension of automated implementation of trading window closure to Immediate Relatives of Designated Persons, on account of declaration of financial results dated 21 April 2025.

With the issuance of this Master Circular, all directions/ instructions contained in the Circulars listed in the Appendix to this Master Circular shall stand rescinded to the extent they relate to Surveillance of Securities Market. [15 May 2026]

SEBI consultation: Review of municipal debt securities framework

SEBI has published a consultation on proposed changes to the framework governing the issue and listing of municipal debt securities. The proposals are made in view of changes in the debt market ecosystem over the years and the feedback garnered from stakeholders. Feedback is requested by 3 June 2026. [13 May 2026]

SEBI consults on agricultural commodity derivatives proposals

SEBI has published a consultation on proposals concerning position limits for clients applicable for agricultural commodity derivatives and penalty provisions for breach of position limits in respect of commodity derivatives. SEBI is also consulting on a proposal to permit exchanges, on a pilot basis, to introduce delivery-based agricultural commodity derivatives contracts that commence trading as financially-settled contracts and mandatorily transition into physically settled contracts upon the occurrence of predefined objective thresholds. Responses to both consultations are requested by 2 June 2026. [12 May 2026]

IFSCA: Master circular for broker dealers and clearing members

The IFSCA has issued a master circular consolidating into a single instrument the regulatory framework dispersed across various circulars applicable to broker dealers and clearing members operating in the GIFT IFSC. [12 May 2026]

SEBI consultation: Review of utilisation of interest or income from investor protection funds

SEBI has published for consultation a proposal to allow the utilisation of a certain portion of interest or income received from any investments of the investor protection fund of depositories to meet certain expenses. Comments are requested by 1 June 2026. [11 May 2026]

SEBI consultation: Mechanism for processing of placement memorandum of AIFs

SEBI has published a consultation on proposals intended to further ease the process of launching new schemes by alternative investment funds (AIFs) through amendments to relevant provisions. Feedback is requested by 1 June 2026. [11 May 2026]

SEBI consultation: Buy-back of securities

SEBI has published for consultation proposed measures aimed at further strengthening the framework for the buy-back of securities. Comments are requested by 29 May 2026. [8 May 2026]

IFSCA: Consumer Charter

The IFSCA has issued a circular to all regulated entities in the IFSC highlighting its Consumer Charter. The charter sets out the ‘IFSCA’s vision and mission for protecting the interests of financial consumers and also outlines their rights and responsibilities’. The IFSCA encourages regulated entities dealing with retail consumers to develop and publish their own Consumer Charters. [8 May 2026]

SEBI: Discontinuation of IRRA platform

SEBI has published a circular announcing the discontinuation of Investor Risk Reduction Access (IRRA) platform; the platform had been introduced to provide stock brokers with an alternative access point for trading in the case of disruption of services. However, since IRRA’s introduction, SEBI has further enhanced business continuity requirements and brokers have strengthened their own operational resilience via use of technologies.

The circular is with effect from 7 May 2026. [7 May 2026]

IFSCA (Fund Management) Regulations, 2025 - as amended up to 30 January 2026

The IFSCA has published the IFSCA (Fund Management) Regulations, 2025, as amended up to 30 January 2026. [7 May 2026]

SEBI: ‘Significant Indices’ under SEBI (Index Providers) Regulations, 2024

SEBI has issued a circular: ‘Significant Indices’ under SEBI (Index Providers) Regulations, 2024. Among other matters, the circular sets out the thresholds for determination of a benchmark or index as significant under the regulations. The provisions of this circular have immediate effect. [5 May 2026]

SEBI: Advisory on emerging advanced AI tools for vulnerability detection

SEBI has issued a circular: Advisory on Emerging Advanced Artificial Intelligence (AI) Tools for Vulnerability Detection. The circular notes recent developments in AI (eg Mythos) present ‘new dimensions of risk’ for firms. SEBI has constituted a task force to examine the risks presented by AI models and to develop a mitigation strategy; the task force will also facilitate intelligence sharing. It will report on cyber events, and look at the cyber security of third party application providers.

SEBI notes that the circular should be read in conjunction with other applicable SEBI circulars, including but not limited to Cybersecurity and Cyber Resilience framework, and any subsequent updates issued by SEBI from time to time. [5 May 2026]

SEBI consults on extending the applicability of the benefit of early pay-in to options contracts in the commodity derivatives segment

SEBI has published a consultation paper which seeks comments on the proposal to extend the applicability of the benefit of early pay-in, currently available on futures contracts, to options contracts in the commodity derivatives segment.

Responses are requested by 26 May 2026. [5 May 2026]

SEBI consults on the proposals related to ease of doing business for OBPPs

SEBI has published a consultation paper seeking comments on proposals related to ease of doing business for online bond platform providers (OBPPs). SEBI’s proposals cover: permitting OBPPs to offer products, securities or services regulated by IFSCA; permitting OBPPs to offer bonds issued under section 54EC of the Income Tax Act, 1961 or Section 85 of the Income-tax Act 2025; and the regulatory framework for OBPPs appointing compliance officers.

Responses are requested by 26 May 2026. [5 May 2026]

SEBI consults on amendments to the SDI Regulations

SEBI has published a consultation paper setting out its proposal to amend the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 (SDI Regulations). The regulator is proposing changes to the SDI regulations regarding securitisation transactions originated by RBI-regulated entities; the changes would align the SDI Regulations with the revised directions issued by the RBI in September 2021 on securitization of standard assets.

Responses are requested by 25 May 2026. [4 May 2026]

SEBI operationalises fast-track mechanism for processing of placement memorandum of AIFs

SEBI has issued a circular announcing it has implemented a Fast-Track Mechanism; it has done so by clarifying that alternative investment funds (AIFs) can proceed with launching their non-large value fund for accredited investor (LVF) schemes and circulate the private placement memorandum (PPM) to their investors for soliciting funds 30 days after filing an application with SEBI, unless otherwise advised.

This circular has immediate effect and also applying to all PPMs of non-LVF schemes pending as on date with SEBI. [30 April 2026]

SECP imposes 10-year term limit for broker directors to strengthen exchange governance

The SECP has issued a circular: Termlimits of broker directors of an exchange, which imposes a 10-year cumulative term limit for broker directors of exchanges, as part of efforts to strengthen governance standards, promote fair representation, and align market regulation with international best practices.

A broker director may serve for a maximum cumulative period of 10 years, whether consecutive or intermittent, in the same exchange. After five cumulative years of service, a broker director must observe a one-year cooling-off period before becoming eligible for reelection.

To ease the transition, the circular provides a two-year transition period for incumbent broker directors, who may complete their current term and remain eligible for election in the next two annual elections. During this period, the exchange for the equities market is expected to undertake a phased reconstitution of its board to enhance representation, diversify expertise, and strengthen minority shareholder protection.

This Circular shall take effect 15 days after its complete publication in the Official Gazette or in at least two newspapers of national circulation in the Philippines. [21 May 2026]

SECP clarifies exempt securities as part of portfolio threshold of qualified buyers

The SECP has published a statement clarifying the portfolio threshold of qualified buyers by expressly including securities exempt from registration with the SECP. The measure is intended to promote the diversification of investments and further streamline regulations in the area. [14 May 2026]

SECP: Annotated consolidated digital reference for securities regulation

The SECP has published an annotated consolidated digital reference document that consolidates the latest rules and regulatory updates regarding securities regulations into a single resource. The document will be updated regularly with new and amendatory rules to ensure its accuracy and reliability. [9 May 2026]

BSP issues warning on unauthorised VASPs

The BSP has issued a warning to the public not to deal with unauthorised virtual asset service providers (VASPs). The warning outlines the risks of dealing with such VASPs, and provides information on how to check for BSP-authorised VASPs. [8 May 2026]

SBV issues Circular regulating the custody and use of valuable papers

The SBV has issued a Circular regulating the custody and use of valuable papers at the SBV. This Circular is intended to improve the legal framework for these activities.

The Circular enters into force on 4 July 2026. [21 May 2026]