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Richard Norridge

Partner, Head of Private Wealth and Charities, UK and EMEA, London

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Jojo Fan

Managing Partner, China Offices, Hong Kong

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ASIC issues recommendations to super industry in death benefit claims handling report

ASIC has delivered 34 recommendations to superannuation trustees in its Report 806 Taking ownership of death benefits: How trustees can deliver outcomes Australians deserve. Published on 31 March 2025 after ASIC conducted a review into the practices of 10 trustees, Report 806 identifies ‘better practice, as well as systemic failures by some trustees that exposed grieving Australians to added emotional and financial distress’. Such failures were indicated to have resulted in consequences of:

  • excessive delays and poor service;
  • gaps in trustee data and reporting;
  • unclear and inconsistent processes and procedures that were within the trustees’ control;
  • ineffective communication; and
  • inadequate support for First Nations claimants and claimants experiencing vulnerability.

ASIC has recommended the following actions for trustees:

  • better customer service and faster response times;
  • improved monitoring and reporting on claims and handling timeframes;
  • streamlined processes and procedures;
  • enhanced guidance and training for staff;
  • removing barriers for First Nations members and claimants; and
  • clearer communications and more support for members.

ASIC will continue to review the progress all trustees on improving their death benefit claims handling processes to ensure they are appropriately prioritising the needs of members and their beneficiaries.  [31 Mar 2025]

ASIC to allow instrument for business introduction and matching services relief to expire

ASIC has announced that it will allow ASIC Corporations (Business Introduction Services) Instrument 2022/805 to expire on 1 April 2025. The Instrument provided conditional relief from the fundraising, financial product disclosure, hawking, and advertising requirements in the Corporations Act 2001 (Cth) that would apply to a person making, or calling attention to, offers through a business introduction service, of interests in managed investment schemes. The Instrument does not provide relief from the Australian financial services licensing requirement.

ASIC explained that the decision to allow the Instrument to expire was made due to:

  • minimal reliance on the Instrument since October 2022;
  • a public consultation process in February 2025 which revealed there was no industry need for the relief for managed investment schemes to be extended; and
  • ASIC’s view that the arguments in favour of reinstating the relief from Chapter 6D of the Corporations Act in relation to securities (which was allowed to expire in 2022) did not outweigh the need for consumer protections.

This is a significant decision given ASIC has provided this relief since 2002. Further, as a result of this decision, ASIC Regulatory Guide 129 Business introduction and matching services will be withdrawn.  [28 Mar 2025]

ASIC remakes relief instrument for 31-day notice term deposits

ASIC has remade legislative instrument, Class Order [CO14/1262] Relief for 31-day notice term deposits, with a minor amendment after receiving feedback from authorised deposit-taking institutions (ADIs) that it was difficult to comply with.

Class Order [CO14/1262] gave 31-day notice term deposits of up to five years concessional regulatory treatment as ‘basic deposit products’ under the Corporations Act but required ADIs to provide both a pre-maturity notice before the term deposit rolled over into a new term, and a post-maturity notice to depositors. The new instrument,  ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172, will continue to treat 31-day notice term deposits as ‘basic deposit products’ but will give ADIs the alternative option of combining the pre and post-maturity notices into a single combined notice and the ability to provide notices via electronic communication.

ASIC commented that this new instrument provides certainty for the industry that 31-day notice term deposits will ‘not be subject to more onerous regulatory requirements, including a higher level of training standards and more prescriptive disclosure obligations’.  [28 Mar 2025]

ASIC warns consumers about scammers impersonating ASIC requesting fund transfers

ASIC has warned consumers to be aware of scammers sending communications impersonating ASIC and requesting recipients to transfer funds from their bank account to a ‘secure’ account. ASIC has clarified that it would never ask individuals or companies to transfer money between bank accounts, will always send communication from an ASIC email address and will always call from a telephone number using Australia’s country code ‘+61’. If in doubt, ASIC recommends calling ASIC to verify that the communication received is legitimate.

ASIC recommends the following for consumers who believe they may have been scammed:

  • blocking all contact from the scammer and not sending any more money;
  • reporting it to their bank or financial institution;
  • contacting IDCARE, which can assist in developing a specific response plan if their identify has been compromised;
  • being wary of follow-up scams;
  • reporting it to Scamwatch; and
  • warning family and friends.  [27 Mar 2025]

The Treasurer delivers the 2025-26 Federal Budget

The Treasurer, the Hon Dr Jim Chalmers MP, has delivered the 2025-26 Federal Budget. As identified in Dr Chalmers’ speech to parliament, the five key focuses of the Federal Budget are: helping with cost-of-living; strengthening Medicare; building more homes; investing in every stage of education; and making the economy stronger, more productive and more resilient.

As outlined in the Budget Papers, the key measures impacting the financial services industry include:

  • ASIC receiving $3 million over 4 years to improve its data analytics capability to better target enforcement activities to deter illegal phoenixing activities (i.e. when a new company, for little or no value, continues the business of an existing company that has been liquidated to avoid paying outstanding debts);
  • ASIC receiving $207.0 million over 2 years to deliver the second tranche of stabilisation and uplift of ASIC’s business registers – this reform will improve the quality of information available to investors and creditors about directors; and
  • banning non-compete clauses for low and middle-income workers (those who earn less than the high-income threshold under the Fair Work Act 2009 (Cth) which is currently $175,000).  [25 Mar 2025]

FSC says no surprises in the Federal Budget for the financial services industry

The FSC has welcomed the 2025-26 Federal Budget, labelling it the ‘no surprises’ budget. FSC’s CEO Blake Briggs congratulated the Treasurer for ‘focusing on cost-of-living challenges facing Australians, and delivering stability and certainty for the financial services industry in advance of the federal election’.

The FSC highlighted that the Federal Budget continues a ‘multi-year focus on improving the funds management tax regime and integrity of the superannuation system’. This includes:

  • measures to clarify arrangements for managed investment trusts to ensure investors can access concessional withholding tax rates in Australia; and
  • $50 million over three years to extend the Tax Integrity Program to enable the ATO to ensure timely payment of superannuation liabilities by Australian businesses.

However, Mr Briggs observed that ‘there remains significant opportunity for the next parliament to refocus on economic growth and regulatory simplification opportunities to grow the economy’. The FSC has recommended several policy proposals to achieve this, including:

  • introducing a team responsible for reducing red tape in regulation;
  • simplifying the breach reporting regime;
  • providing a level playing field under the foreign investment framework;
  • allowing for the rationalisation of legacy superannuation and managed investment products; and
  • introducing a product labelling regime for sustainable and responsible investments.  [25 Mar 2025]

Developing an innovative Australian digital asset industry

The Federal Government has announced that it is working with industry, regulators and the broader community to reshape Australia's role within the global digital asset ecosystem. The focus of this approach will be to adopt international best practice in respect of digital assets to assist industry in identifying opportunities for growth and innovation whilst highlighting any potential risks to businesses, consumers and market integrity. This approach was informed by actions taken within other international jurisdictions, such as Singapore and the European Union, in addition to consultation with ASIC to ensure appropriate transitional arrangements are in place. Whilst the reforms will extend financial services laws to key digital asset platforms, it is not anticipated that the legislative changes will affect the entire digital asset ecosystem.

The legislative reforms are expected to introduce both:

  • a framework for Digital Asset Platforms (DAPs), which are online platforms that hold digital assets for consumers; and
  • a framework for payment stablecoins, which will be treated as a type of stored-value facility (SVF) under the Government’s Payments Licensing Reforms.

It is expected that this framework will not impose any new regulatory burden on the issuers of digital assets, as the focus is on mitigating the risks associated with custody arrangements for digital assets. As such, the framework will extend only to DAPs providing common digital products (such as trading platforms) and businesses operating and dealing with DAPs. It is also expected that those providing advice on using DAPs will be included within its scope. Simultaneously, the Government is also developing a comprehensive framework for payments service providers which will revise existing licensing regime for non-cash payments to ensure it covers the wide range of payment methods now provided in Australia.

Under the new requirements, businesses which fall within their ambit are expected to comply with well-understood ‘general obligations’ imposed on all financial service providers, such as providing services honestly, fairly, and efficiently. Additionally, businesses operating DAPs or issuing tokenised SVFs will specifically be required to comply with rules for safeguarding customer assets, requirements for the redemption of stored value represented by tokens, and new obligations which are addressed specifically to the unique risks posed by DAPs and SVFs. The press release points particularly to these new obligations including tailored disclosure rules for digital assets without issuers, disclosure of information about composition of reserves and others.

Additional initiatives discussed within the press release are:

  • managing the growing risk of de-banking emerging from the rise of the digital asset sector;
  • the implementation of a Crypto Asset Reporting Framework to address possible tax evasion using digital assets;
  • a review of the Enhanced Regulatory Sandbox in 2025 to allow businesses to test new financial products or services without needing an AFSL or credit license;
  • the possible introduction of an Australian dollar central bank digital currency;
  • testing the use of tokenised money; and
  • assessing the suitability of decentralised financial transactions within Australia.  [21 Mar 2025]

ASIC Scam Alert: Scammers impersonating ASIC

ASIC has alerted consumers to be aware that scammers are impersonating ASIC by sending emails and texts requesting recipients provide a payment to enable funds or assets to be released. ASIC said that it neither collects payments to enable the release of funds or assets, provides guarantees of funds or assets release, nor does it provide payments into digital asset exchanges. If a consumer is in doubt, ASIC recommends calling ASIC to verify that the communication received is legitimate.

ASIC recommends the following for consumers who believe they may have been scammed:

  • blocking all contact from the scammer and not sending any more money;
  • reporting it to their bank or financial institution;
  • reporting it to their digital asset exchange;
  • contacting IDCARE, which can assist in developing a specific response plan if their identify has been compromised;
  • being wary of follow-up scams;
  • reporting it to Scamwatch; and
  • warning family and friends.  [19 Mar 2025]

ASIC: Superannuation fund ordered to pay $10.5 million penalty in ASIC’s third greenwashing court action

ASIC has announced that the Federal Court imposed a $10.5 million penalty on a superannuation fund for greenwashing misconduct. The dispute concerned the superannuation fund’s claim in its marketing that it eliminated environmentally and socially hazardous investments from its portfolio, such as gambling, mining companies and oil tar sands. The superannuation fund also represented that, following the invasion of Ukraine, Russian investments were 'out'. Despite these assertions, in reality, the super fund held direct and indirect investments in a number of such companies.

The court found that the superannuation fund had engaged in false or misleading conduct for a period of approximately two and a half years by misrepresenting the 'ethical' nature of its investments. O'Callaghan J found that the fund 'benefitted from its misleading conduct' and said that as a result of the fund's conduct '… investors lost the opportunity to invest in accordance with their investment values… [and] was likely to have led to investors losing confidence in ESG programs'.

ASIC Deputy Chair Sarah Court said: 'this case demonstrates ASIC’s commitment to taking on misleading marketing and greenwashing claims made by companies promoting financial services. It is our third greenwashing court outcome, and we will continue to keep greenwashing in our sights'.  [18 Mar 2025]

Payday super draft legislation released by the Albanese Government

The Federal Government has published an exposure draft of the Treasury Laws Amendment Bill 2025 (Cth), along with the exposure draft Regulations and explanatory statement, aimed at addressing current issues regarding unpaid superannuation. Under the current draft legislation, employers, from 1 July 2026 onwards, will be required to contribute to their employee's superannuation at the same time as they pay their salary and wages. Amongst other things, the amendments will also increase penalties and charges for employers who either miss or are late in providing super payments. It is proposed that the consequences for employers are targeted and proportionate, with penalties escalating for employers who engage in longer, larger and repeated failures and are reduced if voluntary disclosures are made (with the reduction depending on when the voluntary disclosure is made and whether it is accurate). The Superannuation Guarantee charge will also be redesigned to fully compensate workers for any delay in receiving their super.

In a press release, the Assistant Treasurer and Minister for Financial Services, Stephen Jones, explained that 'while most employers do the right thing, the Australian Taxation Office estimates $5.2 billion worth of super went unpaid in 2021–22'. The new payday super regime proposed under the draft legislation aims to rectify this issue by making employer super payments easier and more streamlined.

The consultation on the draft legislation and accompanying regulations will close on 11 April 2025.  [14 Mar 2025]

APRA publishes the December 2024 edition of the Quarterly Superannuation Product Statistics, Superannuation Industry Publication and Fund-level Statistics

APRA has published the Quarterly Superannuation Industry Publication (QSIP), Quarterly Superannuation Product Statistics (QSPS) and the Quarterly Fund-Level Statistics (QFLS). APRA publishes statistics on the superannuation industry on a quarterly basis. The QSIP contains data on superannuation products, investment options, member demographics and investments. The QSPS lists all superannuation products offered by each APRA-regulated superannuation fund and the investment menus and investment options available through these products. The publication also contains granular information on fees and costs, investment performance, investment strategy and asset allocation for a range of products and investment options. The QFLS contains detailed member demographic information and total fund investments by asset sector types for each APRA regulated superannuation funds with more than six members. APRA intends to expand on the QFLS to include information on derivatives held by each superannuation fund.  [12 Mar 2025]

APRA publishes updates to FAQs on Superannuation Data Transformation

APRA has announced that it has added ten new frequently asked questions (FAQs), amended two FAQs and added two new worked examples on its website as part of its Superannuation Data Transformation project. APRA intends for these FAQs to clarify reporting questions of RSE licensees and to offer guidance which, along with APRA's reporting standards, RSE licensees may refer to in order to fulfill their reporting requirements.  [12 Mar 2025]

ASIC sues AustralianSuper alleging significant death benefit claims failures

ASIC has announced that it is suing AustralianSuper Pty Ltd (AustralianSuper), which is the trustee of Australia's largest superannuation fund, in the Federal Court over delayed processing of close to 7,000 death benefits claims between 1 July 2019 and 18 October 2024. ASIC alleges that AustralianSuper failed to process death benefit claims 'efficiently, honesty and fairly', taking between four months to four years from the date of the claim to assess at least 6,897 death benefit claims.

ASIC further alleges that AustralianSuper contravened the following provisions of the Corporations Act 2001 (Cth):

  • s 912A(1)(a) which required AustralianSuper to do all things necessary to ensure the financial services covered by its licence are provided 'efficiently, honestly and fairly'; and
  • s 912A(1)(c) to comply with financial services laws on 752 occasions, by failing to pay member benefits as soon as practicable after the death of 752 members (a requirement under s 34(1) of the Superannuation Industry (Supervision) Act 1993 (Cth) and regulation 6.21(1) of the Superannuation Industry (Supervision) Regulations 1994 (Cth).

ASIC is seeking penalties, declarations an adverse publicity order and orders for compliance matters to be implemented.  [12 Mar 2025]

ASIC Chair Joe Longo's keynote speech at the Australian Institute of Company Directors Australian Governance Summit

ASIC has released the keynote speech delivered by its Chair Joe Longo  at the Australian Institute of Company Directors Australian Governance Summit.

Notably, Mr Longo shared the view that directors in the superannuation industry were failing to know their businesses, sharing that the number of superannuation complaints to the Australian Financial Complaints Authority have remained high, and that ASIC has received reports from consumer advocates and financial counsellors about super funds which had failed to serve their First Nations members.

In response to accusations that ASIC maintained a double-standard approach between industry and retail super funds, Joe Longo maintained that ASIC's approach to penalties for misconduct are the same regardless of whether the fund is an industry or retail fund, and shared that ASIC will continue to seek penalties to sufficiently deter other funds from engaging in misconduct, which the ASIC Chair believed to stem from directors not knowing their business.  [12 Mar 2025]

APRA proposes changes to strengthen and streamline governance and fit and proper requirements

APRA has announced that it released eight proposals to strengthen its prudential governance framework for banks, insurers, and superannuation trustees in the Governance Review – Discussion Paper. The proposals aim to ensure that APRA’s governance standards reflect contemporary best practice and establish clear benchmarks for regulated entities. In addition, they address current areas of poor practice and aim to help ensure that all regulated entities are governed by leaders with the appropriate skill, experience and character. APRA Chair, John Lonsdale, stated that 'while overall standards of governance have improved over recent years, we still see areas of weakness, including entities treating compliance with some requirements as a box-ticking exercise'.

The proposed changes include:

  • lifting requirements for boards to ensure they have the right mix of skills and experience to deliver the entity’s strategy;
  • raising minimum standards for the fitness and propriety of a responsible persons, and requiring significant financial institutions to engage with APRA on succession planning and potential appointments;
  • extending existing requirements for superannuation trustees in relation to managing conflict of interest to banking and insurance;
  • strengthening board independence;
  • clarifying APRA’s expectations around the role of boards, the chair and senior management; and
  • introducing a lifetime tenure limit of 10 years for non-executive directors at an APRA-regulated entity.

APRA has stated that the changes would be applied proportionately with reduced expectations in some areas for smaller and less complex financial institutions. APRA is also seeking to streamline its governance framework by stripping away duplicative or unnecessary requirements and developing a single set of prudential standards for all regulated entities.

Responses to the Discussion Paper are due by 6 June 2025, with APRA stating that it will host industry and other stakeholder roundtables in April and May, to gather feedback and insights. APRA has said that it intends to release updated prudential standards and guidance for formal consultation in the first half of 2026 and aims to publish the updated framework by the beginning of 2027 ahead of it commencing by 2028.  [6 Mar 2025]

Consumer Data Right expansion to deliver a better deal for consumers

The Assistant Treasurer and Minister for Financial Services, Stephen Jones, has announced that the Government will uplift the Consumer Data Right (CDR) by expanding it to non-bank lending providers; this will commence from mid-2026. In August 2024, the Government announced the CDR reset, to address concerns around high compliance costs and the limited uptake of use cases by consumers.

The media announcement stated that the Government:

  • has amended the CDR rules to streamline the consent process for consumers;
  • is examining changes to the framework that could be made to reduce costs and facilitate high value use case;
  • is exploring how the existing data sharing framework can better support high priority use cases such as consumer finance and lending, small business accounting services and energy switching;
  • has written to the Data Standards Body setting out the Government’s expectations that future standards changes align with the Government’s direction for CDR; and
  • intends to move towards a ban of screen scraping.

Apart from expanding the CDR to non-bank lending providers, other changes include:

  • removing the requirement for data holders to share consumer or product data for niche products such as asset finance, consumer leases, reverse mortgages, margin loans and foreign currency amounts;
  • reducing the period of data to be held and shared from 7 years to 2 years, reducing costs associated with maintaining and responding to requests for historical data; and
  • ensuring Buy Now, Pay Later products are covered by data sharing obligations.

The article said that 'the Government is working closely with stakeholders and will continue to expand the CDR in ways that foster innovation, whilst being purposeful and focussed on consumer benefit'.  [3 Mar 2025]

HKEX announces closing of 2024 annual attestation and inspection programme and commencement of 2025 programme

The HKEX has issued a circular to announce that it has successfully completed its 2024 annual attestation and inspection programme. This program involved inspecting 29 exchange participants and clearing participants, and reviewing self-attestation questionnaires from 683 participants regarding compliance with China Connect rules, the Hong Kong Investor Identification Regime, and risk management.

While most participants had systems and controls in place for compliance in the above priority areas, the HKEX identified certain common deficiencies and shortcomings among the participants.  62 participants were identified with non-compliance issues and/or deficiencies in various aspects of the priority areas, as listed in the circular.

With a view to raising the awareness of participants’ compliance in the priority areas, the HKEX sets out its key findings and elaborates on its compliance reminders in the appendices 1, 2 and 3.  The provisions highlighted in the compliance reminders are not exhaustive and may be subject to change from time to time.  

Participants should review their current practices and procedures against the compliance reminders, adopt appropriate measures to strengthen their controls, and where necessary, take immediate actions to rectify any breaches or deficiencies.  The HKEX takes rule breaches and deficiencies seriously and may consider taking disciplinary action against non-compliant participants, including issuing warning letters, imposing fines and initiating disciplinary proceedings.

The HKEX has also issued a separate circular announcing the commencement of the 2025 annual attestation and inspection programme.  The 2025 programme will focus on the following priority areas:

  • China Connect Rules: Compliance with China Connect Rules in relation to northbound trading (applicable to China Connect exchange participants and trade-through exchange participants of the Stock Exchange of Hong Kong Limited); and
  • Risk management: Practices in place to identify, assess, monitor and mitigate various areas of risk such as credit, liquidity, operational, market and financial (applicable to clearing participants).

The self-attestation compliance questionnaire will cover prescribed risk controls for trading system (applicable to Hong Kong Futures Exchange Limited participants and The SEHK Stock Options Clearing House Limited participants only).

Participants are invited to attend one of two information sessions on the 2025 programme, which will be hosted in a live webinar format.  The registration deadline for the sessions is 16 April 2025.  [31 Mar & 1 Apr 2025]

HKSCC announces 13 April 2025 as launch date of FINI enhancements

The Hong Kong Securities Clearing Company Limited (HKSCC) has issued a circular to confirm that the launch of the enhancements to the Fast Interface for New Issuance (FINI) (see our previous update) will take place on 13 April 2025.

The circular also notes the following:

  • The User Guide for HKSCC Participants, FINI API User Guide, and FINI Information Pack (FAQ) have been published on the FINI webpage.
  • To facilitate the launch of FINI enhancement, the regular system maintenance end time on Sunday will be extended from 12:00pm to 6:00pm on 13 April 2025.
  • Participants are recommended to download reports of previous completed IPOs by 11 April 2025 (Friday) for backup purposes.  [31 Mar 2025]

HKMA draws registered institutions' attention to SFC circular of 20 March 2025 containing guidance on investor identification in IPO subscription activities

The HKMA has published a circular to draw registered institutions' attention to the guidance regarding investor identification in IPO subscription activities set out in the SFC's circular of 20 March 2025 (see our previous update).

The guidance is set out in paragraph (a) under the "Other compliance issues" section of the SFC circular.  Registered institutions should take reasonable steps to ensure that the client identification data submitted to the Fast Interface for New Issuance for IPO subscriptions is accurate, and should implement reasonable control measures to prevent a client from submitting multiple subscription orders for an IPO through the client’s accounts maintained with the same firm.

The HKMA reminds registered institutions to put in place adequate policies, procedures and controls, as well as provide sufficient staff training to ensure the compliance with all applicable requirements.  [28 Mar 2025]

Banking (Amendment) Bill 2025 gazetted to facilitate voluntary sharing of information among AIs to aid in detection and prevention of crime

The Government has gazetted the Banking (Amendment) Bill 2025, which aims to facilitate the sharing of information among authorised institutions (AIs) under specified conditions to enhance the efficiency in detecting and preventing crime in Hong Kong.  The Bill will be introduced into the Legislative Council for first reading on 2 April 2025.

This follows a public consultation on the proposed mechanism in early 2024, which received general support from the respondents.  The HKMA also consulted the Hong Kong Association of Banks and the Office of the Privacy Commissioner for Personal Data on the detailed proposals of the Bill.

The Bill proposes to introduce a voluntary mechanism for AIs to share with each other information of corporate and individual accounts through secure platforms to be designated by the HKMA, when they become aware of suspected prohibited conduct (i.e. money laundering, terrorist financing or financing of proliferation of weapons of mass destruction).  The proposed mechanism will enable AIs and relevant law enforcement agencies to take swift action to achieve earlier interception of illicit funds and expedite intelligence gathering so that the public will be better protected from fraud and associated money laundering activities.

The Bill will provide legal protection for AIs that disclose information under the mechanism, provided that the AIs making the disclosure act in good faith and with reasonable care, and comply with specified confidentiality requirements.  The information disclosed must only be used for detecting or preventing a prohibited form of conduct.  AIs participating in the mechanism must also put in place adequate systems of control to ensure the security of the information.  AIs that have disclosed information must correct any inaccuracy in the information.  [28 Mar 2025]

HKEX publishes Compliance Bulletin (Issue no. 13) on investor eligibility requirement for trading of ChiNext shares and LOP reporting requirements during holiday trading days

The HKEX has published the 13th issue of its Compliance Bulletin regarding the investor eligibility requirement for trading of ChiNext shares and Large Open Positions (LOP) reporting requirements during holiday trading days:

  • Investor eligibility requirement for trading of ChiNext shares – The SEHK reminds China Connect exchange participants (CCEP) and trade-through exchange participants (TTEPs) that only institutional professional investors are permitted to trade ChiNext shares.  CCEPs and TTEPs should have appropriate controls in place to prevent non-compliance and have arrangements to facilitate the unwinding of any ineligible transactions.  Rule violations, if any, must be reported to the HKEX promptly.
  • LOP reporting requirements during holiday trading days – The SEHK outlines the procedures for LOP report submission during holiday trading days and potential enforcement actions for non-compliance.  

The HKEX notes that the requirements and examples set out in the bulletin are not exhaustive.  Participants should take into consideration their own circumstances to ensure full compliance with the relevant rules and requirements, and seek their own professional advice on their specific situations where appropriate.

The HKEX strongly advises participants to review their current set up and implement appropriate measures to strengthen their controls.  Where necessary, they should take appropriate action to address any potential rule breaches or deficiencies.  [26 Mar 2025]

SFC reprimands and fines licensed corporation HK$5 million and suspends director (also an RO and MIC) for internal control failures relating to securities margin financing

The SFC has reprimanded and fined Enlighten Securities Limited (ESL) HK$5 million, and suspended the licence of Mr Denny Kua Kong Chak for seven months, for internal control failures relating to securities margin financing.

Mr Kua is a director and responsible officer (RO) of ESL.  He is also a manager-in-charge (MIC) of key business line, operational control and review, overall management oversight and risk management of ESL.

The SFC's investigation found deficiencies in ESL's risk management controls and practices from 1 May 2020 to 30 November 2022.  ESL provided financial accommodation to margin clients with long-standing shortfalls and poor histories of settling margin calls, without implementing prudent risk management measures, such as:

  • Setting triggers for stopping further securities purchases by margin clients with insufficient account equity;
  • Effectively managing margin calls and/or exercise forced liquidation on margin clients;
  • Properly managing its margin clients’ credit limits; and
  • Promptly collecting margin due by clients.

These failures fell short of the standards expected under the SFC's main code of conduct, guidelines relating to internal control, and Guidelines for Securities Margin Financing Activities. The SFC attributed these failures to Mr Kua's failure to discharge his duties as an RO and a member of the senior management of ESL.

The SFC noted that it had reduced the fine from HK$6.5 million to HK$5 million in light of ESL's financial position and decision to cease business.  [24 Mar 2025]

SEHK issues circular to inform exchange participants of publication of FAQs on reduction of minimum spreads

The Stock Exchange of Hong Kong Limited (SEHK) has issued a circular regarding the implementation of phase 1 of the reduction of minimum spreads in the Hong Kong securities market.  The SEHK has previously provided information on the upcoming optional test session and mandatory market rehearsal, and updated interface specifications (see our previous update).

This phase, subject to regulatory approval, will update the technical arrangement relating to spread table codes in the OMD-C and OMD-C MMDH.  Exchange participants should refer to the FAQs for more information, review their internal systems, and make appropriate adjustments where necessary.  [24 Mar 2025]

HKSCC provides further information to facilitate preparation for enhancement to settlement arrangement for multi-counter eligible securities

The Hong Kong Securities Clearing Company Limited (HKSCC) has issued a circular to provide information to clearing participants to facilitate the preparation for the enhancement to the settlement arrangement for multi-counter eligible securities in the Central Clearing and Settlement System .  The enhancement is targeted to take effect in June 2025, subject to regulatory approval (see our previous update).

The circular notes the following:

  • The HKSCC has published a set of sample migration reports on its web corner to assist clearing participants with the migration.
  • The HKSCC will hold webinars on 23 April (Cantonese), 25 April (English), and 28 April 2025 (Cantonese) to share key information about the implementation, including the rollout approach, timeline, and practice session arrangements.  Clearing Participants interested in attending should register via the Event section in Client Connect by 16 April 2025.
  • Clearing participants are advised to review their funding arrangements, particularly for non-Hong Kong dollars (RMB and USD), and ensure the availability of their RMB/USD bank accounts designated to settle obligations against HKSCC.

Relevant information on the enhancement is published on the web corner. Clearing participants should consult their internal IT support units or system vendors early for necessary preparation.  [21 Mar 2025]

HKMA expands customer limit for non-locally incorporated AIs providing Southbound Scheme services under Cross-boundary Wealth Management Connect Pilot Scheme

The HKMA issued a circular to increase the customer limit (from 1,000 to 3,000) for non-locally incorporated authorised institutions (AIs) providing Southbound Scheme services under the Cross-boundary Wealth Management Connect Pilot Scheme to non-private banking customers. 

The increase in the limit is in view of feedback from some AIs and the smooth adoption of the regime by AIs. The circular attaches the policy considerations and updated limit for ease of reference.  Other requirements of the regime remain unchanged.

The circular supersedes the HKMA’s prior circular of 31 May 2024 (see our previous update).  [21 Mar 2025]

SFC suspends financial influencer for 16 months for unlicensed provision of investment advice

The SFC has suspended a financial influencer, Mr Wong Ming Chung (also known as Franky Wong), for 16 months following his criminal conviction in June 2024 (see our previous update) for the unlicensed provision of investment advice via a subscription-based chat group on Telegram.

Although Mr Wong was an SFC-licensed representative at the material time, he could only act for the licensed corporation to which he was accredited in carrying on business in regulated activities.  However, he operated the Telegram chat group in his personal capacity between 2 January 2018 and 21 May 2019.

As a result of his criminal conviction, the SFC considers that Mr Wong is not a fit and proper person to remain licensed to carry on regulated activities.  [20 Mar 2025]

SFC issues additional guidance on IPO subscription and financing services following recent review, to be complied with in respect of IPOs with offering periods commencing after 20 March 2025

The SFC has issued a circular following a recent review of the risk management practices and control measures of selected licensed corporations (LCs) in relation to their initial public offering (IPO) subscription and financing services, as well as their compliance with its prior circular of 8 November 2023 (see our previous update).  The present circular sets out the findings from the review and provides guidance to LCs on the expected standards of conduct for IPO financing and IPO subscription practices.

In the review, some of the LCs were found to have engaged in imprudent and aggressive IPO financing practices by accepting subscription orders that exceeded their clients’ financial capabilities.  In some cases, the LCs focused primarily on the subscription levels or anticipated subscription rates of IPO stocks rather than the financial positions of clients, which could result in over-leveraging for clients and could subject the LCs themselves to an increased client default risk.

The additional guidance in the present circular sets out the SFC’s expected standards of conduct and control measures for LCs.  These include:

  • Collection of minimum upfront subscription deposits;
  • Financial risk management, including evaluating their own financial and liquidity capabilities as well as the creditworthiness of their clients when providing IPO financing to clients; and
  • Proper segregation of clients’ subscription deposits.

The circular also reminds LCs of other important considerations in relation to IPO subscriptions, regarding:

  • The investor identification requirement under Fast Interface for New Issuance; and
  • Computation of liquid capital.

LCs should critically review their existing policies and procedures to ensure proper implementation of and full compliance with the circular in respect of IPOs with offering periods commencing after the date of the circular (20 March 2025).  

The SFC will continue to supervise LCs’ regulatory compliance in their IPO subscription and financing activities through offsite monitoring, on-site inspections and thematic reviews.  [20 Mar 2025]

HKSCC publishes circulars to announce upcoming enhancements to FINI and to reiterate IPO investor identification requirement

The Hong Kong Securities Clearing Company Limited (HKSCC) has published a circular regarding the enhancements and system changes to the Fast Interface for New Issuance (FINI) which it intends to roll out in the near future to improve functionality and user experience.  The production launch date will be announced around two weeks prior to implementation:

  • Enabling maintenance of a different designated bank account solely for EIPO money settlement to provide greater flexibility in the segregation of money for different purposes;
  • Providing a summary table of all in-flight IPOs with key dates and essential information via the FINI user interface;
  • Enhancing the communication channel to enable timely communications with FINI users;
  • Enhancing the computation logic of POMax Value to enable accurate differentiation between public and international offer shares; and
  • Updating the fields of IPO reference data for API users.

The HKSCC has also published a circular to reiterate the IPO investor identification requirement under FINI, in view of recent reports regarding the inconsistent submission of investor identification particulars in EIPO subscriptions under the public offer tranche.  Participants are reminded to strictly follow the requirements as set out under FAQ E7 in the FINI Information Pack and the prospectuses of new listing applicants.  They should conduct appropriate due diligence and put in place adequate internal controls to ensure the truth, accuracy and completeness of information on IPO application submissions made by them.  [17 & 20 Mar 2025]

SFC bans former RO (and CEO and MIC) for 14 months over fund management failures

The SFC has prohibited Mr Steven Wong Yung, a former responsible officer (RO) and chief executive officer (CEO) of Kylin International (HK) Co., Limited (Kylin), from re-entering the industry for 14 months over failures in managing various private funds.

Mr Wong was also Kylin’s manager-in-charge (MIC) of (i) overall management oversight, (ii) key business line, (iii) anti-money laundering and counter-terrorist financing, (iv) compliance, (v) operational control and review, (vi) risk management, and (vii) information technology at different intervals.

He was responsible for overseeing the overall operations and internal controls of Kylin, which at the relevant time was the investment manager and/or consultant of sub-funds of a Cayman-incorporated fund.

The SFC found that Mr Wong had failed to discharge his duties as an RO and a member of the senior management of Kylin to:

  • Ensure its maintenance of appropriate standards of conduct and adherence to proper procedures in managing the funds in question; and
  • Properly manage the risks associated with Kylin’s business.

The SFC’s disciplinary action against Mr Wong is related to its disciplinary actions against other related entities concerning the management of the funds in question.  Given that the disciplinary actions against those entities are still in progress, the SFC will not disclose the details of its disciplinary action against Mr Wong until the conclusion of its actions against those entities.  [19 Mar 2025]

HKMA publishes research paper on use of DLT in financial sector, setting out use cases and recommendations for mitigating potential risks

The HKMA has published a research paper titled 'Distributed Ledger Technology in the Financial Sector: A Study on the Opportunities and Challenges', which discusses the potential of distributed ledger technology (DLT) to transform the financial landscape as well as to enable greater efficiency, transparency and innovation.

The research paper:

  • Explores the transformative role of DLT, as well as its benefits, challenges and potential use cases for the financial industry;
  • Features 10 real-world adoption cases covering diverse use cases, such as programmable payments, trade settlement, and digital identity management, showcasing the technology’s potential to enhance the existing financial market operations; and
  • Analyses the potential risks associated with the adoption of DLT and offers recommendations on how to mitigate them.

The HKMA encourages authorised institutions to review the paper and leverage the insights to explore the innovation of DLT.  It also encourages participation in the recently launched Supervisory Incubator for DLT (see our previous update) to consider how DLT solutions could be productionised.  [19 Mar 2025]

OTC Clear to accept Chinese Government bonds and policy bank bonds as collateral for all derivatives from 21 March 2025

The HKEX has announced that OTC Clearing Hong Kong Limited (OTC Clear) will start accepting Chinese Government bonds and policy bank bonds held by international investors through Bond Connect as margin collateral for all derivative transactions cleared by OTC Clear from 21 March 2025.

Since January, these bonds have already been permitted for use to cover initial margin requirements for Northbound Swap Connect transactions (see our previous update).

OTC Clear has published a circular regarding the commencement date of 21 March 2025, stating that the development will further enhance the utility of RMB-denominated assets in the market, allow for greater flexibility on collateral type and improve capital efficiency, thereby building the RMB ecosystem and solidifying Hong Kong as an offshore RMB centre.  [19 Mar 2025]

HKMA publishes updated and consolidated guidance on selling of accumulators

The HKMA has issued a circular to update and consolidate the relevant product-specific regulatory requirements issued over the years on the selling of accumulators, with the aim of providing convenient access to the latest regulatory requirements.

The circular also clarifies the exemptions allowed for institutional professional investors (PIs) and qualified corporate PIs in relation to accumulator transactions, and includes guidance on ensuring compliance with the relevant regulatory requirements when dealing with sophisticated professional investors.

The consolidated guidance is set out in Annex 1, superseding the previous circulars listed in Annex 2.  No new regulatory requirements have been introduced.  The guidance covers areas including the classification of accumulators, suitability assessment, product disclosure, audit trail, exemptions for institutional PIs and qualified corporate PIs, and further guidance for FX accumulators.

It is not expected that authorised institutions (AIs) will need to introduce any change to their systems or processes to comply with the requirements set out in this circular if they are already in compliance with the prior circulars.  Nonetheless, AIs are reminded to continue to have in place adequate policies and procedures, internal controls and staff training to ensure compliance with this circular and other applicable regulatory requirements.  [14 Mar 2025]

SEHK announces upcoming testing arrangement and update to interface specifications for phase 1 of reduction of minimum spreads

To prepare exchange participants for the implementation of phase 1 of the reduction of minimum spreads in the securities market (see our previous update), the Stock Exchange of Hong Kong Limited (SEHK) has announced that an optional end-to-end test session and a mandatory market rehearsal will be scheduled in May and June 2025 respectively.

Details of the test arrangements will be announced in due course, but exchange participants will be able to test the changes in relation to the spread table and the quotation rules (which changes are subject to regulatory approval).  The market rehearsal will be arranged thereafter, and all exchange participants are required to participate to confirm their readiness.

Although there is no interface change to Orion Trading Platform – Securities Market, exchange participants should review their internal systems and make appropriate adjustments where necessary.

A client notice has been issued, and an updated version of the interface specifications for the implementation of phase 1 are available on the HKEX Orion Market Data Platform – Securities Market webpage and the Mainland Market Data Hub – Securities Market webpage respectively.  [7 Mar 2025]

SFC publishes quarterly report for October to December 2024

The SFC has published its quarterly report, summarising its work and key developments from October to December 2024.  The highlights covered by the report include (among others):

Maintaining market resilience and mitigating harm

  • The SFC launched an anti-scam campaign in December 2024 to caution the public against fraudulent schemes.
  • During the quarter, the SFC issued section 179 directions in 41 cases to request information, initiated five new enquiries into listed company affairs and 51 new investigations into various forms of misconduct.  It also commenced Market Misconduct Tribunal proceedings into alleged insider dealing and concluded various disciplinary actions.

The SFC implemented the new Type 13 regulated activity regime for public fund depositaries in October 2024, granting licenses to 19 depositaries and over 300 individuals.  It also concluded its consultation on market sounding guidelines, which will be implemented in May 2025.

Enhancing Hong Kong market competitiveness

  • The SFC announced an enhanced timeframe for the new listing application process jointly with the Stock Exchange of Hong Kong Limited, and held an inaugural IPO Sponsor Forum in December 2024 to discuss the IPO vetting process with senior management of sponsor firms.
  • The first phase of the Integrated Fund Platform was launched to provide investors with one-stop access to information on SFC-authorised funds.

Transforming markets via technology and ESG

  • The SFC granted licences to eight virtual asset trading platform (VATP) applicants during the quarter and are considering the applications of eight others, four of which are deemed to be licensed.
  • In December 2024, the SFC provided VATPs with a roadmap on their licensing journey and guidance on the revamped second-phase assessment.  It also established in early 2025 a consultative panel to support licensed VATPs and consider their views in its policymaking.
  • The SFC published its Roadmap on Sustainability Disclosure in December 2024

Enhancing SFC's resilience and efficiency

  • The SFC launched Fund Authorisation Simple Track to expedite the processing of applications of simple investment funds from specific jurisdictions, as well as the e-IP, an online application and submission system for investment products.
  • The SFC engaged in proactive publication communication, with senior executives speaking at over 40 local and international events on topics including asset management, fintech, mutual market access, corporate governance and sustainability.  [6 Mar 2025]

SFC warns public of suspected virtual asset-related fraud

The SFC has warned the public of an entity operating under the name 'Linkbex', with a website at hxxps://fxlinkbex[.]com, for suspected virtual asset-related fraudulent activities. Linkbex made false claims of its affiliation with seven SFC licensed corporations in Hong Kong.  Investors reported that their accounts with Linkbex were locked due to purported 'anti-money laundering investigation of the SFC'.

At the SFC’s request, the Hong Kong Police Force has taken steps to block access to the website of Linkbex.  Linkbex and its website have been posted on the SFC’s suspicious virtual asset trading platforms alert list. The SFC urges investors to stay vigilant and beware of fraud when making investment decisions, and reminds the public that they can look up public announcements on its official website concerning certain regulatory actions, such as freezing client accounts of licensed intermediaries.  [6 Mar 2025]

CMU OmniClear and HKEX sign MOU to enhance post-trade securities infrastructure of Hong Kong capital markets

The HKMA and HKEX have respectively announced that CMU OmniClear Limited (CMU OmniClear), a wholly-owned subsidiary of the Exchange Fund, and the HKEX have signed a memorandum of understanding (MOU) to deepen their collaboration in enhancing the post-trade securities infrastructure of Hong Kong’s capital markets, and support the long-term development of the city’s fixed-income and currencies ecosystem.

Under the MOU, CMU OmniClear and the HKEX will explore and pursue cooperation in the following areas (among others), with a view to consolidating and enhancing Hong Kong’s status as an international financial centre, a global risk management centre, and an offshore RMB business hub:

  • Realising cross-asset class efficiencies across equities and fixed income;
  • Expanding the use of Mainland bonds as collateral;
  • Enhancing Hong Kong as a bond issuance centre; and
  • Developing an international central securities depository in Asia.

The HKMA's Chief Executive, Mr Eddie Yue, has published an InSight article regarding the background and rationale for the collaboration between CMU OmniClear and the HKEX:

  • Supporting the development of RMB internationalisation – The collaboration will integrate the complementary strengths of each custodial platform, creating a synergistic effect that will accelerate the unlocking of the potential of Mainland bonds as collateral, whilst providing market participants with more agile tools for capital deployment and risk management, to help promote the issuance and trading of offshore RMB bonds.
  • Stimulating in and outbound investments – The two platforms will jointly expand the asset classes and geographical coverage of Hong Kong’s central securities depositories.  They will also collaborate on outreach activities to attract more investors and to encourage more bond issuance and lodgement activities in Hong Kong.
  • Enhancing user experience – The two platforms will explore establishing a common interface to facilitate more efficient management of fixed income and equity holdings by investors.  In the longer run, they will also explore the feasibility of curating a multi-asset class custodial platform, leveraging advanced technologies to upgrade the platform to support settlement netting across asset classes, thereby enhancing settlement efficiency.  [4 Mar 2025]

SEHK issues circular on order input and trade cancellation and amendment

The Stock Exchange of Hong Kong Limited (SEHK) has issued a circular reminding exchange participants (EPs) that all order inputs are valid and that all trades concluded shall not be amended or cancelled unless otherwise determined by the SEHK board.  Under the current procedures, cancellation and/or amendment of a trade must be agreed upon by both the selling and buying parties.

EPs must exercise due care when inputting orders into the system and ensure that the details inputted are accurate.  They are also requested to note that except as may otherwise be permitted by the board or the Chief Executive of the SEHK, they should not deal with an EP whose exchange participantship or right to access the system has been suspended.  [3 Mar 2025]

SEHK reminds EPs to set order consideration limit and apply notional value checks

The Stock Exchange of Hong Kong Limited (SEHK) has issued a circular reminding exchange participants (EPs) to review and determine their own order consideration limit (known as notional value in OCG-C interface specifications) based on their business needs and financial strength, to mitigate the risk and impact of order/trade input errors.  EPs should ensure they have sufficient liquidity and resources to handle any consequences in the event of such errors.

The order consideration limit should be set at firm level and will only be effective for risk control if notional value checks are applied when submitting orders/trades to OTP-C.  EPs using broker supplied systems should coordinate with their vendors on the system settings for the notional value checks.  It should be noted that these are additional control measures to prevent order/trade input errors and are not intended to replace the EP's existing internal controls.  EPs are responsible for maintaining proper operational procedures and internal controls when handling client orders and transactions.

If EPs need to modify the order consideration limit, they should do so via the eService 'CT027' under Client Connect, or the 'Confirmation of OTP-C Order Consideration Limit Setting' form, at least 3 working days before the intended effective date.  [3 Mar 2025]

MAS consults on LIF framework for retail private market investment funds

MAS has published a consultation on a proposed regulatory framework for retail investors to invest in private market investment funds. Under the current regulatory framework for funds, retail investors in Singapore have limited access to private market investments such as private equity, private credit and infrastructure. Recently, MAS has observed growing interest from retail investors for such investments, and interest from experienced industry players to offer private market investment fund products to retail investors.

To respond to this interest, MAS has proposed a Long-term Investment Fund (LIF) framework for private market investment funds. It is adapted from existing fund requirements to suit the characteristics of private market investment funds and the needs of retail investors when investing in these funds. MAS sets out two options for fund structures in its consultation.

Responses are requested by 26 May 2025.  [27 Mar 2025]

MAS consults on prudential treatment of crypto exposures, Tier 1 and Tier 2 capital instruments for banks

MAS has published a consultation seeking feedback on proposed amendments to the standards relating to the regulatory framework for capital and large exposures for Singapore-incorporated banks, and the regulatory framework for liquidity for banks in Singapore.

The proposed amendments are aimed at implementing the Basel Committee on Banking Supervision standards relating to the prudential treatment and disclosure of cryptoasset exposures.

Responses are requested by 28 April 2025.  [27 Mar 2025]

MAS: Joint advisory on scammers impersonating officials

MAS and the Singapore Police Force have issued a joint advisory alerting the public of scams involving impersonation of MAS officials and representatives from the National Trades Union Congress Union and financial institutions. Since January 2025, at least six cases have been reported to the police, with total losses amounting to at least S$1.7m.  [14 Mar 2025]

MAS: Collaboration with Vietnam SSC on capital markets regulation and digital assets regulatory framework

MAS and the State Securities Commission of Vietnam (SSC) have announced a collaboration, via a Letter of Intent (LOI), on capacity building in support of the development of a digital asset regulatory framework for Vietnam. The LOI facilitates the sharing of information on regulatory frameworks for capital markets and digital assets, sharing of experience in anti-money laundering and counter-terrorism financing, and building of capacity as well as mutual sharing of experiences and frameworks for the regulation and supervision of capital markets and digital assets.  [12 Mar 2025]

MAS: Enhanced cooperation with Vietnam on financial innovation

MAS has announced that it has agreed with the State Bank of Vietnam to enhance their existing Memorandum of Understanding (MoU) to further cooperate on financial innovation. The upgraded MoU will facilitate an expanded scope of cooperation on joint digital innovation projects, promote payment connectivity between Singapore and Vietnam, and support fintech operations in both markets.  [12 Mar 2025]

MAS: Joint advisory on scams involving digital manipulation (deepfakes)

MAS, the Singapore Police Force, and the Cyber Security Agency of Singapore have issued a joint advisory on scams involving AI-created or AI-manipulated synthetic media, or 'deepfakes'. AI may be used to assist in the impersonation of executives of companies for which the victims work; the scams typically see victims instructed to transfer funds from company accounts. Businesses are advised to adopt the following precautionary measures:

  • Establish protocols for employees to verify the authenticity of video calls or messages, particularly those purportedly from senior executives or key stakeholders. Train employees to be vigilant about unsolicited video calls or messages, even if they appear to come from known business contacts.

  • Be mindful of any sudden or urgent fund transfer instructions and verify the authenticity of the instructions with the relevant departments or personnels directly through established communication channels.

  • Analyse the audio-visual elements of the video call. Check for tell-tale signs that could suggest the manipulation of the audio or video through AI technology.

  • Never disclose confidential or personal information or send money to unknown persons.

  • Alert employees to this scam, especially those that are responsible for making fund transfers.

  • In the event of suspicion that the company has fallen victim to a scam, call the associated bank immediately to report and block any fraudulent transactions, and make a police report.  [12 Mar 2025]

MAS: Response to PQ on tightening of regulations for digital payment token service providers

MAS has published the response to a Parliamentary Question (PQ) on the Government's key considerations in deciding to tighten regulations for digital payment token service providers.

The response states that cryptocurrencies are highly volatile and are usually not anchored on any fundamental value. Were an individual to use a credit card to purchase cryptocurrencies, that borrowing would typically attract a higher rate of interest than other forms of credit. If the value of the cryptocurrency falls, losses may be substantial losses meaning that the credit card debt may not be cleared. More generally, using credit or leverage magnifies losses, and investors can lose more than the principal amount they put in. MAS has therefore prohibited digital payment token service providers from providing credit or leverage to all retail customers, regardless of age, for the purchase of cryptocurrencies.  [5 Mar 2025]

MAS: Governance and risk management of commodity financing

Following thematic inspections on the effectiveness of selected banks, MAS has published an information paper setting out its supervisory expectations to guide banks in their governance and risk management of their commodity financing activity.

Banks and finance companies are expected to benchmark their governance and risk management practices against this paper and implement the necessary measures as appropriate in light of their organisational structures, business models, scale of operations and risk profiles. Banks should also take into account relevant industry guidance when considering the adequacy of their practices.  [4 Mar 2025]

SCM: Updated guidelines on share offerings by unlisted public companies

The SCM has updated its Guidelines on Offer of Shares by Unlisted Public Companies, aimed at enhancing investor protection and safeguarding market integrity. The Guidelines, which took effect on 28 March 2025, supersede the Guidelines on Offer of Shares by Unlisted Public Companies to Sophisticated Investors issued by the SCM in 2021. [28 Mar 2025]

BNM: Policy documents on BBS and complaints handling

BNM has published the following policy documents:

  • Policy document on basic banking services (BBS) – this outlines the requirements and expectations that financial services providers must meet to ensure that consumers, especially those in unserved and underserved segments, have access to essential banking services at low cost.

  • Policy document on complaints handling – this sets out enhanced regulatory requirements intended to ensure that the complaints handling mechanisms of firms remain relevant, accessible and timely. [28 Mar 2025]

SCM: Revised Guidelines on Advertising for Capital Market Products and Related Services

The SCM has published a revised version of its Guidelines on Advertising for Capital Market Products and Related Services. The guidelines were revised to update certain requirements, taking into account advertising and promotional trends globally and domestically, including the growing prominence of social media and finfluencers.  [27 Mar 2025]

BNM: 2024 Annual Report and Financial Stability Review

BNM has published its Annual Report 2024 and the Financial Stability Review  for the second half of 2024.  Among other matters, the Financial Stability Review covers the implementation of the standardised approach for credit risk in light of the revisions under Basel III and the transition to the National Sustainability Reporting Framework.  [24 Mar 2025]

SCM: Annual report 2024

The SCM has published its annual report for 2024 which shows the size of the Malaysian capital market hit an all-time high of RM4.2 trillion in 2024 (compared to RM3.8 trillion in 2023). The assets under management of the fund management industry reached a new high of RM1.1 trillion, while fund-raising activities grew to RM138.9 billion.

In terms of the SCM's future work, Chair Mohammad Faiz Azmi confirmed that it is now drafting a new five-year capital market masterplan, focusing on key areas such as improving financial security for retirees and promoting sustainable financing.  [20 Mar 2025]

CCOB: Consumer Credit Bill 2025

The Consumer Credit Oversight Board (CCOB) task force has published a brochure with information on the Consumer Credit Bill 2025. The brochure sets out the objectives of the Bill, details on the phased approach to implementation, and the benefits to consumers.  [8 Mar 2025]

SCM and MCMC to combat scams via enhanced regulatory oversight

The SCM has announced that it has agreed with the Malaysian Communications and Multimedia Commission (MCMC) to step up cooperation to combat the growing threat of online scams. The areas of collaboration include strengthening enforcement and scam prevention and leveraging on AI capabilities. The SCM and the MCMC will work closely with service providers and relevant stakeholders to expedite scam detection and speedier content takedowns.  [1 Mar 2025]

SECT: Amendment to SEA

The SECT has announced that it supports the resolution passed by the Cabinet, approving a proposed emergency decree to amend the Securities and Exchange Act (SEA).

Mrs. Pornanong Budsaratragoon, SECT Secretary-General, said: 'This legislative amendment involves improvements across multiple areas, from increasing efficiency in short-selling supervision to ensure fairness and transparency, to supervising capital market professional to elevate their role of inspection and preventing listed company fraud. The proposed amendments also aim to enhance the reporting of creation of obligations in securities to ensure that investors receive essential, comprehensive, and sufficient information for investment decision-making. Moreover, additional legal measures would be in place to prevent potential damages from listed company transactions and enhance law enforcement effectiveness by increasing the SECT’s authority in case proceedings.'  [27 Mar 2025]

BoT relaxes housing loan criteria

The BoT has announced that the Monetary Policy Committee and the Financial Institutions Policy Committee have agreed to relax the regulatory criteria for housing loans as well as other related loans. The measure is being taken to help support the real estate sector and related businesses by easing the problem of high outstanding supply. The relaxation will apply to loan agreements signed between 1 May 2025 and 30 June 2026.  [20 Mar 2025]

SECT: PM meets with agencies to review progress on measures for building capital market confidence

The SECT has announced that the Prime Minister (PM) met with SECT, the Stock Exchange of Thailand, and the Department of Special Investigation to discuss situations in the stock exchange and update progress on the measures for building trust and confidence in the capital market, especially regarding strict and rapid legal enforcement.  [17 Mar 2025]

SECT adds USDC and USDT to the cryptocurrencies list

The SECT has specified the list of eligible cryptocurrencies to be used for investment in digital tokens through the initial coin offerings process and as base trading pair against digital asset exchanges. Currently, there are five listed cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Stellar (XLM), and cryptocurrencies used for testing settlement with Bank of Thailand‘s Programmable Payment Sandbox. Following consultation, the SECT has issued a notification adding two additional cryptocurrencies: USDT and USDC. 

The Notification regarding the amended criteria will take effect as from 16 March 2025.  [6 Mar 2025]

RBI: Revised PSL guidelines, new PSL Master Directions

The RBI has published revised guidelines on Priority Sector Lending (PSL) after a comprehensive review of existing provisions, taking into account feedback from stakeholders. Major changes in the new guidelines include:

  • enhancement of several loan limits, including housing loans for enhanced PSL coverage;

  • broadening of the purposes based on which loans may be classified under ‘Renewable Energy’;

  • revision of the overall PSL target for urban cooperative banks (UCBs) to 60% of Adjusted Net Bank Credit or Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher; and

  • expansion of the list of eligible borrowers under the category of ‘Weaker Sections’, along with removal of the existing cap on loans by UCBs to individual female beneficiaries.

In conjunction with the guidelines, the RBI has published the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025. These directions are issued with a view to delineating a framework for ensuring the adequate flow of credit from the banking system to the sectors of the economy that are crucial for their contribution to socio-economic development, with focus on specific segments whose credit needs remain underserved despite being credit worthy.

The new guidelines and the directions come into effect on 1 April 2025.  [24 Mar 2025]

SEBI: Commodity derivatives segment advisory – extension of suspension of trading

SEBI has issued an advisory in relation to its previous suspension in trading in derivative contracts in certain commodities. SEBI advises that the suspension in trading in the relevant contracts has been further extended to 31 March 2026.  [24 Mar 2025]

SEBI: Advisory to registered intermediaries- Uploading advertisements on social media

SEBI has issued an advisory to registered intermediaries regarding the uploading of advertisements on social media platforms. This follows SEBI's observation that there has been a rapid increase in frauds related to the securities market, e.g. enticing victims with online trading courses or seminars, or giving misleading or deceptive testimonials, promises or guarantees of assured or risk-free returns.

Following consultation with social media platform providers, all registered intermediaries who upload or publish advertisements on social media platforms will be required to register on the platforms using the email IDs and mobile numbers with which they have registered on the SEBI Intermediary (SI) Portal. This will enable platform providers to carry out advertiser verification of registered intermediaries. SEBI asks all registered intermediaries to update their contact details on the SI Portal by April 30, 2025.  [21 Mar 2025]

SEBI consults on implementing SBU for registered stockbrokers

SEBI has published a consultation seeking feedback on proposals to facilitate the ability of registered stockbrokers to undertake securities market-related activities in GIFT-IFSC by offering services under a separate business unit (SBU) on an arms-length basis.

Responses are requested by 11 April 2025.  [21 Mar 2025]

SEBI consults on proposals relating to EBP and RFQ platforms

SEBI has published a consultation on a working group review of provisions pertaining to the Electronic Book Provider (EBP) and the Request For Quote (RFQ) platforms. The working group recommendations take into account factors including: enhancing transparency; improving quality of information that investors have access to; and having better and quicker processes. Responses to the consultation are requested by 10 April 2025.  [20 Mar 2025]

SEBI: Disclosure of shareholding patterns

SEBI has announced certain modifications to its disclosure rules in respect of shareholding pattern and manner of maintaining shareholding in dematerialised format. The circular will come into force on 30 June 2025.  [20 Mar 2025]

SEBI adopts DigiLocker to reduce unclaimed assets

SEBI has announced its decision to adopt DigiLocker, a Government digital document wallet that facilitates the obtaining and storing of various documents by citizens, with a view towards reducing unidentified unclaimed assets in the Indian securities market. Asset management firms and recognised depositories are directed to register with DigiLocker as issuers so as to enable users and investors to access a number of documents. The circular will come into effect from 1 April 2025.  [19 Mar 2025]

IFSCA extends consultation on regulatory approach to tokenisation of real-world assets

The IFSCA has announced an extension to the deadline for responding to its consultation paper titled 'Regulatory Approach towards Tokenization of Real-World Assets'. Comments on the paper can now be submitted until 30 April 2025.  [19 Mar 2025]  

RBI: Annual ombudsmen conference

The RBI has reported on the annual conference of RBI ombudsmen themed 'Transforming Grievance Redress: The AI Advantage', which was attended by representatives of major banks, non-banking financial companies, non-bank payment system operators, and others.

In his address at the conference, RBI Governor Sanjay Malhotra highlighted the strides made in improving banking services but also emphasised the need for enhancing customer experience significantly so as to obviate any need for grievance redressal. He called on regulated entities to strengthen their internal grievance redress framework to effectively address grievances at their level and avoid escalation of grievances to the RBI ombudsmen. He also underlined the need to improve Know Your Client processes and raise customer awareness, particularly on digital frauds. 

The conference also included panel discussions on grievance resolution through technological transformation and adoption of a synergetic approach for strengthening customer protection.  [17 Mar 2025]

RBI: Digital Payments Awareness Week 2025

The RBI has announced the inauguration of the 5th Digital Payments Awareness Week, an initiative to highlight the impact and importance of digital payments and to create awareness about safe usage of digital payment products. During the period 10 to 16 March, the RBI, payment system operators, banks and other stakeholders conducted nationwide awareness activities, including multimedia campaigns, on-ground educational programs and social media-based outreach. Governor Shri Sanjay Malhotra delivered an address at the inauguration event; he spoke about the safety and security of digital payments and how the RBI's soft touch approach to regulating the payments ecosystem and fintechs serves to promote innovation.  [10 Mar 2025]

SEBI: Extension of timeline for reporting of differential rights issued by AIFs

The SEBI has decided to extend the deadline for a one-time reporting requirement in respect of differential rights that may be offered by alternative investment funds (AIFs) to select investors without affecting the rights of other investors. Such information was to be submitted to SEBI in the prescribed format by 28 February 2025. This has now been extended to 31 March 2025.  [3 Mar 2025]

SEBI: Industry standards on KPIs

SEBI has announced that the Industry Standards Forum (ISF) has formulated industry standards, in consultation with SEBI, for effective implementation of the requirement to disclose key performance indicators (KPIs) in the draft offer document and offer document. The industry associations which are part of ISF and the stock exchanges will publish the standards on their websites. The circular will come into effect from 1 April 2025.  [28 Feb 2025]

SECP: RENT compliance grace period

The SECP has announced a grace period for compliance with the securities registration requirement under SEC Memorandum Circular No. 12, Series of 2024 (Securing & Expanding Capital in Real Estate Non-Traditional Securities) (RENT). The registration of securities by relevant parties should be made on or before 30 September 2025; the SECP will impose penalties for non-compliance.  [31 Mar 2025]

SBV: Cross-border payment connection via QR codes between Vietnam and Singapore

The SBV has announced that, within the framework of the Singaporean Prime Minister Lawrence Wong’s official visit to Vietnam, businesses of the two countries have exchanged different arrangements of cooperation to promote the comprehensive strategic partnership between Vietnam and Singapore. Among these arrangements, the National Payment Corporation of Vietnam has been working with the Network for Electronic Transfers (Singapore) Pte. Ltd. on implementing cross-border payment connection services via QR codes between Vietnam and Singapore.  [28 Mar 2025]

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The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.

Asia Richard Norridge Jojo Fan