APAC Monthly Private Wealth Legal Developments – September 2024

1. SFC publishes updated codes and guidelines and other documents for implementation of new RA 13 licensing regime governing public fund depositaries on 2 October 2024

The SFC has published updated codes, guidelines, forms and checklists, and new FAQs, for the implementation of the new Type 13 regulated activity (RA 13) regime governing public fund depositaries, which took effect on 2 October 2024. 

The full set of the new/updated documents can be accessed via Footnote 5 of the SFC press release.  The updated codes and guidelines were also gazetted on 27 September 2024 (see our previous update).

Under the new regime, depositaries of SFC-authorised collective investment schemes operating in Hong Kong are required to be licensed by or registered with the SFC to conduct RA 13 (see our previous update for further information).

To facilitate the transition for existing practitioners, the SFC began accepting applications for RA 13 in July 2023.  Licences/registrations have been granted to 19 depositaries under major banking or insurance groups operating in Hong Kong and over 300 of their staff members (see Footnote 2 of the SFC press release for a list of the depositaries).  [30 Sep 2024]

2. HKMA publishes research paper on GenA.I. in financial services sector

The HKMA has published a research paper titled 'Generative Artificial Intelligence in the Financial Services Space', which explores the transformative potential of generative artificial intelligence (GenA.I.) and its implications for the financial industry, particularly in terms of operational efficiency, risk management, and customer engagement.

The HKMA has been working closely with other financial regulators to promote cross-sectoral adoption of fintech (with artificial intelligence being a key area of focus) under the 'All banks go Fintech' initiative of its 'Fintech 2025' strategy (see our previous update). 

The HKMA recently conducted an industry-wide survey participated by 137 industry practitioners and in-depth interviews with 16 organisations across the technology, banking, securities, and insurance sectors.  Findings reveal that most financial institutions are currently focusing on internal applications that drive employee productivity, such as innovations aimed at automating routine tasks, improving workflow efficiencies, and enhancing knowledge sharing.  The adoption of GenA.I. for customer-facing applications remains nascent.  Concerns around regulatory compliance, operational deployment, and the resource-intensive nature of GenA.I. solutions are cited as key barriers to more widespread adoption.

The research paper:

• Provides insights into the current state of GenA.I. adoption within the financial sector, highlighting key applications and challenges identified through interviews with financial institutions and technology solution providers;
• Outlines the critical risk management considerations associated with GenA.I., including data privacy, cybersecurity, information inaccuracy and algorithmic bias, and offers recommendations for governance structures and deployment approaches to support responsible innovations.

The HKMA encourages all authorised institutions to review this paper and consider how GenA.I. can be thoroughly tested (such as through the new GenA.I. Sandbox – see our previous update), and responsibly integrated into the institutions’ operations, service offerings and risk management systems.

The HKMA indicates that it remains committed to fostering a fintech ecosystem that balances innovation with supervisory oversight, ensuring that the benefits of GenA.I. can be realised without compromising the stability, security, or ethical standards of the financial system.  [27 Sep 2024]

3. HKMA discusses proposed regulatory regime for stablecoin issuers in feature article

The HKMA has published a feature article, 'Regulatory Regime for Stablecoin Issuers in Hong Kong' in its September 2024 Quarterly Bulletin.  The article covers the following areas:

• Background on stablecoins and digital assets more broadly, and key events in the market since 2020;
• Potential risks of stablecoins;
• Background to the formulation of a regulatory regime for fiat-referenced stablecoins and the proposed regulatory requirements;
• Stablecoin issuer sandbox and proposed use cases.

The HKMA believes that early implementation of the regulatory regime can lay a solid foundation to foster innovations and help promote the healthy, responsible and sustainable development of the stablecoin and broader digital asset ecosystem in Hong Kong.  It is aiming to introduce the draft legislation into the Legislative Council by the end of 2024.  [27 Sep 2024]

4. SFC publishes amendments to codes and guidelines ahead of implementation of new licensing regime for Type 13 regulated activity on 2 October 2024

The SFC has published in the Gazette amendments to various codes and guidelines ahead of the implementation of the new licensing regime for Type 13 regulated activity (providing depositary services for relevant collective investment schemes) on 2 October 2024 (see our previous update for the background to this new regime):

• Guidelines on Competence;
• Fund Manager Code of Conduct;
• Code on Real Estate Investment Trusts;
• Code on Pooled Retirement Funds;
• Code on Unit Trusts and Mutual Funds (as set out in Section II of the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products); and
• Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Ordinance.  [27 Sep 2024]

5. SFC and HKMA conclude further proposals to enhance OTC derivatives reporting regime, to be implemented in September 2025

The SFC and the HKMA have published their joint conclusions paper on a further consultation (see our previous update) on enhancements to the over-the-counter (OTC) derivatives reporting regime in Hong Kong.

The SFC and the HKMA launched the further consultation in March 2024 on mandating the reporting of the unique transaction identifier, the unique product identifier, and critical data elements, as well as the adoption of the ISO 20022 standard for submission of OTC derivatives transactions to the trade repository operated by the HKMA (HKTR).  This is in line with the Group of Twenty’s commitment to reform OTC derivatives markets, and will facilitate the analysis of OTC derivatives transactions by regulators.

Respondents generally supported the proposal and recognised the benefits brought by the international standardisation and harmonisation of data elements reported to different OTC derivatives reporting regimes globally.  In light of the feedback received, the SFC and the HKMA have fine-tuned certain proposals to facilitate a smooth implementation.

The conclusions paper further sets out the concluded list of data elements subject to mandatory reporting and confirms the implementation of the proposals on 29 September 2025. 

The SFC has issued a circular regarding the updated technical specifications for the HKTR, as reflected in the amended Administration and Interface Development Guide.  [26 Sep 2024]

6. HKMA commences Phase 2 of e-HKD pilot programme, renamed Project e-HKD+

The HKMA has announced that it has commenced Phase 2 of the e-HKD Pilot Programme (launched in March 2024 - see our previous update) to delve deeper into innovative use cases for new forms of digital money, including e-HKD and tokenised deposits, that can potentially be used by individuals and corporates.

The project has been renamed as Project e-HKD+ to reflect the evolving fintech landscape and the HKMA’s commitment to unlocking the full potential of digital money.

Under Phase 2, 11 groups of firms from various sectors will explore innovative use cases for e-HKD and tokenised deposits across three main themes: settlement of tokenised assets, programmability, and offline payments.  The firms will also examine the commercial feasibility, within a real-world setting, of new forms of digital money that may potentially be accessible to individuals and corporates.

As with Phase 1, an e-HKD sandbox will be made available to pilot participants to accelerate their prototyping, development and testing of use cases.  The HKMA will work closely with the selected firms in the next 12 months or so, with the aim of sharing the key learnings from Phase 2 with the public by the end of 2025. 

The outcome of Phase 2 will help the HKMA understand the practical issues that may be faced in designing, implementing and operating a digital money ecosystem that comprises both publicly and privately issued digital moneys. 

The HKMA will also establish the e-HKD Industry Forum to provide a collaborative platform for participating institutions to discuss common issues and further explore the possible implementation and adoption of new forms of digital money in a scalable manner.  Under the forum, industry-led working groups will be established to make recommendations on specific topics, with an initial focus on issues related to programmability.  [23 Sep 2024]

7. HKEX announces establishment of Integrated Fund Platform Task Force

The HKEX has announced the establishment of the Integrated Fund Platform Task Force which brings together key industry stakeholders to support the development of a more efficient, diverse and vibrant fund distribution ecosystem in Hong Kong (see our previous update regarding the task force).

The task force comprises representatives from various industry associations and stakeholders. They will help shape the future of the Integrated Fund Platform by providing valuable insights and feedback to help finalise the platform's business design.

The platform will include a repository featuring SFC-authorised products, providing investors with enhanced access to information and transparency on fund investment options.  It will also feature a centralised network connecting different parties in the fund distribution ecosystem, such as fund managers and distributors, to facilitate order routing, subscriptions and redemptions, as well as nominee services. 

Further details will be announced in the fourth quarter of 2024.  [20 Sep 2024]

8. HKMA invites AIs to participate in GenA.I. Sandbox

The HKMA has issued a circular to invite authorised institutions (AIs) to participate in the Generative Artificial Intelligence (GenA.I.) Sandbox initiative announced in collaboration with the Hong Kong Cyberport Management Company Limited (Cyberport) in August 2024 (see our previous update).

The sandbox aims to provide a risk-controlled environment for AIs to develop, test, and pilot innovative artificial intelligence-based solutions in real world banking scenarios.  AIs can leverage Cyberport's computing power and obtain targeted supervisory feedback throughout their trials.  Based on the results of the trials, the HKMA will share good practices and consider the need for developing further supervisory guidance.

Applications for the first cohort are open until 15 November 2024, and will be prioritised based on the factors set out in the annex to the circular.  Selected projects should begin within one month of the announcement (tentatively in December 2024), and be completed within six months.  Participants are required to submit regular progress updates and a final report upon project completion. 

The HKMA encourages AIs to explore a range of artificial intelligence implementations.  The trials are expected to leverage advanced artificial intelligence, including GenA.I., models designed for real-time interaction, domain-specific assessment, decision-making support or predictive analytics, with a specific focus on enhancing risk management, anti-fraud measures and customer experience.

AIs are encouraged to collaborate with fintech firms when developing use cases for the trials.  Cyberport provides a catalogue of fintech firms, language model providers, and GenA.I. solution providers to assist AIs in forming partnerships and exploring relevant technologies.  [20 Sep 2024]

9. HKMA issues circular to remind AIs to complete final preparation ahead of launch of severe weather trading on 23 September 2024

On 18 June 2024, the HKMA issued a circular on the banking sector's support for the implementation of severe weather trading arrangements (see our previous update).  Since then, authorised institutions (AIs) have confirmed their technical and operational readiness for the implementation of the arrangements.  The HKMA has issued a further circular to remind AIs to complete any final preparation work ahead of the launch of severe weather trading on 23 September 2024.

In response to two rounds of surveys conducted by the HKMA, AIs have confirmed their preparedness in supporting severe weather trading through the provision of continuous banking and payment services:

• Cheque clearing and settlement;
• Remote working and operational arrangements;
• Services to securities brokers;
• Services to bank customers.

Despite extensive preparations by the AIs, the HKMA acknowledges that there may still be operational challenges, particularly during the initial stage of implementation.  AIs are reminded to:

• Maintain comprehensive contingency plans and effective customer communication under different plausible scenarios, including communicating clearly with customers about any disruptions of services, and providing timely updates on the status of impacted transactions;
• (With regard to maintaining securities brokers’ settlement accounts) Work with their broker customers to ensure the accounts’ operability and put in place appropriate protocols for handling exceptions on a severe weather day.

AIs are encouraged to regularly review the requests and enquiries from their personnel and customers with a view to assessing the effectiveness of their severe weather trading arrangements, including upon the first instance of severe weather day after 23 September 2024. 

The HKMA will continue to work closely with the SFC, the HKEX and the banking industry and provide further guidance as needed.  [19 Sep 2024]

10. HKEX announces receipt of regulatory approval for implementation of severe weather trading on 23 September 2024 and amendments to relevant rules and procedures

The HKEX has announced that it has received regulatory approval for the implementation of severe weather trading, scheduled to come into effect on 23 September 2024.

Following the issue of consultation conclusions (see our previous update) and the provision of further information and guidance on severe weather trading (see our previous updates of July, August and September 2024), further circulars have been issued by the Stock Exchange of Hong Kong Limited (SEHK) (one and two), Hong Kong Futures Exchange Limited (HKFE), Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC) and the SEHK Options Clearing House Limited (SEOCH). 

• Operational arrangements:  Participants are required to support trading, clearing and settlement activities during severe weather conditions as they normally would do on a regular trading or settlement day.  A summary of operational arrangements is provided in Attachment 1 to the circulars.
• Final check on operational and system readiness:  Participants are reminded to run through the checklist in the Severe Weather Trading - Readiness Declaration Form to ensure their operational and system readiness for severe weather trading. 
• SEHK, HKSCC (one and two), HKCC, HKFE and SEOCH have amended the following rules, procedures and terms and conditions, to take effect on 23 September 2024:
• Rules of the Exchange (see clean / marked-up versions);
• Options Trading Rules of the Stock Exchange (see clean / marked-up versions);
• Operational Trading Procedures for Options Trading Exchange Participants of the Stock Exchange (see clean / marked-up versions);
• General Rules of CCASS (HKSCC) (see clean / marked-up versions);
• CCASS (HKSCC) Operational Procedures (see clean / marked-up versions);
• Terms and Conditions to the Services for Master SPSA Holder (see clean / marked-up versions);
• Terms and Conditions for Investor Participants (see clean / marked-up versions);
• Rules and Procedures of HKCC (see clean / marked-up versions);
• Rules, Regulations and Procedures of the Futures Exchange (see clean / marked-up versions);
• Options Clearing Rules of SEOCH (see clean / marked-up versions);
• Operational Clearing Procedures for Options Trading Exchange Participants of SEOCH (see clean / marked-up versions). 

OTC Clearing Hong Kong Limited (OTC Clear) has announced that effective from 23 September 2024, voluntary deposits, porting and withdrawal requests in respect of cash collateral will be processed during days on which a Black Rainstorm Warning or Typhoon Signal Number 8 or above is in force.  Apart from this, there is no change to the clearing and settlement services during adverse weather conditions.  OTC Clear has amended its clearing procedures (see clean / marked-up versions) for the purpose of facilitating the deposit, withdrawal and porting of non-cash collateral during severe weather days.  [16 & 19 Sep 2024]

11. SEHK and HKFE remind participants regarding LOP reporting procedures for severe weather trading

Following the circulars on the implementation of severe weather trading in Hong Kong (see 'HKEX announces receipt of regulatory approval for implementation of severe weather trading on 23 September 2024 and amendments to relevant rules and procedures' above), the Stock Exchange of Hong Kong Limited (SEHK) has issued a circular to remind participants regarding large open position (LOP) reporting procedures.

To maintain the monitoring capability on LOPs during a severe weather trading day, the existing reporting procedures will remain applicable during such days.

An options exchange participant holding positions in excess of the reporting level held for its own account or for any of its clients shall file a written report with the SEHK no later than 12:00 noon of the next business day on which the SEHK is open for trading stock options.  It should continue to file a report on each succeeding day for as long as it holds positions in excess of the reporting level.

A person (such as a client of the participant) who holds positions in excess of the reporting level and files the report to the SEHK directly (instead of via its options exchange participant(s)) shall be subject to the reporting procedures as prescribed above.

Options exchange participants are required to observe and comply with the reporting procedures stipulated in the circular, and to inform their clients of the reporting requirements and their responsibilities of reporting.

Similar procedures apply to participants of the Hong Kong Futures Exchange Limited (HKFE) and relevant persons (such as clients of the participants) who hold positions in an exchange contract in excess of a LOP, as set out in a circular issued by the HKFE.  [16 Sep 2024]

12. HKMA and AMCM announce establishment of direct linkage between CMU and CSD to promote development of bond markets

The HKMA and the Monetary Authority of Macao (AMCM) have jointly announced the establishment of a direct linkage between the Central Moneymarkets Unit (CMU) of the HKMA and the central securities depository (CSD) operated by Macao Central Securities Depository and Clearing Limited (a wholly-owned subsidiary of the AMCM), to promote the development of bond markets in the two jurisdictions.

This arrangement will mark a new milestone in the financial cooperation between Hong Kong and Macao, forming part of the synergistic development of the core cities in the Guangdong-Hong Kong-Macao Greater Bay Area.

The official launch date and detailed arrangements for the direct linkage will be announced in due course. In essence:

• Investors in Hong Kong, through their accounts at the CMU, will be able to clear, settle and hold bonds lodged with the CSD in Macao; and
• Investors in Macao, through their accounts in the CSD in Macao, will be able to clear, settle and hold bonds lodged with the CMU.  [16 Sep 2024]

13. SFC announces conditions for distribution of research reports on eligible Mainland ETFs under Stock Connect in Hong Kong

The SFC has issued a circular setting out the conditions that allow intermediaries to distribute research reports relating to eligible Mainland exchange-traded funds (ETFs) under the Stock Connect in Hong Kong.  The requirements for distributing such reports are generally consistent with the existing practices and requirements for the distribution of research reports on eligible Mainland stocks under the Stock Connect.

The inclusion of ETFs under the Stock Connect in July 2022 has allowed Mainland and Hong Kong investors to trade eligible ETFs listed on each other’s market through their local brokers.  In July 2024, the scope of eligible ETFs under the Stock Connect was expanded (see our previous update).

In view of the orderly expansion of the Stock Connect and the increasing diversity of eligible securities under the scheme, the China Securities Regulatory Commission clarified in March 2020 that the existing requirements for Mainland securities companies to forward research reports of eligible Hong Kong stocks under the Stock Connect on the Mainland can apply to research reports of eligible Hong Kong ETFs under the Stock Connect. 

The SFC has therefore, on a reciprocal basis, issued the present circular to outline the relevant requirements for intermediaries to distribute Relevant Reports in Hong Kong.  The requirements relate to the following areas:

• Distribution party;
• Contents of the research report and responsibility for the contents;
• Disclosures of conflicts of interest and warning statements (see appendix to the circular for Illustrative examples of such disclosures).  

The arrangements for distribution of research reports aim to enhance Mainland and Hong Kong investors’ understanding of the products in each other’s market, as well as facilitate trading and liquidity in both markets.  [9 Sep 2024]

14. HKEX issues circular to provide guidance on mitigating risks of self-trades

The HKEX has issued guidance to describe the factors that an exchange participant could consider to help demonstrate that its internal set-up is adequate to mitigate the risk of self-trades by different trading units that might be susceptible to inappropriate trading behaviour.  Mitigating arrangements include (among others):

Operational independency of different trading units:

• Matching orders should originate from units within the same firm which are independent of each other.
• Sound internal controls should be in place with necessary and sufficient documentary evidence to demonstrate that different units within the firm are independent of each other.

Preventive measures:

• These include appropriate pre-trade and post-trade system controls and surveillance measures, reasonable action(s) against personnel involved to discourage recurrence of questionable trading behaviour, regular review to ensure the independence of trading units/strategies and adherence to the relevant measures/controls, and proper data retention policies and procedures.

Other relevant factors in determining whether there is any potential act of false trading, such as:

• Repeated occurrences of the same behaviour, and across a small or large number of securities/products.
• The traded volumes have made a relatively substantial contribution to a specific period(s), and across small or large number of securities/products.
• The impact of the traded volumes on any noticeable price movement of the security/securities. 

Exchange participants are also reminded to consider the adoption of the Self-Match Prevention services across the cash and derivatives markets to avoid inadvertent self-trades at exchange level.

A licensed corporation should always seek to ensure its on-going compliance with all regulatory requirements and to operate in the interest of market integrity.  The Market Surveillance and Monitoring Department may conduct enquiries to ensure that the firm has performed regular review and assessed that any changes to relevant policies, procedures and measures/controls continue to be appropriate and effective.  [9 Sep 2024]

15. HKEX publishes Compliance Bulletin (Issue no. 11) on current regulatory issues

The HKEX has published the eleventh issue of its Compliance Bulletin to provide participants of exchanges and clearing houses a better understanding of its enforcement work and regulatory expectations in relation to specific issues.

This issue sets out the relevant requirements and discusses the common deficiencies identified from participants in the following areas:

• Usage of Trade Discrepancy Forms and BCAN Error Reports under Hong Kong securities market and Northbound trading under Stock Connect – Exchange participants should file a BCAN Error Report when the executed trades were tagged with incorrect BCANs at the time when the orders were placed.  For other trade errors not related to BCAN tagging, the Trade Discrepancy Form should be filed.

• Northbound trading under the Stock Connect – China Connect exchange participants are reminded that Mainland investors have been restricted from Northbound trading under the Stock Connect since 25 July 2022.

• Dealings with suspended exchange participants – Under no circumstances should an exchange participant place any orders for a suspended exchange participant without prior approval from the relevant exchange.  The trading capacity of the suspended exchange participant (ie, principal or agency) is irrelevant.

The HKEX notes that the requirements and examples set out in this bulletin are not exhaustive.  Exchange 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.  [5 Sep 2024]

16. HKEX issues reminder on control measures for clearing and settlement activities on severe weather trading days

Following the provision of information on severe weather trading on 15 July 2024 (see our previous update), further circulars have been issued to participants by The SEHK Options Clearing House Limited, Hong Kong Securities Clearing Company Limited and HKFE Clearing Corporation Limited. 

Participants are reminded to review their control measures for clearing and settlement activities on severe weather trading days, for example:

• Adequate funding at designated bank accounts: Participants should ensure sufficient funds are available to meet payment obligations;
• Special arrangements to manage client exposure: Participants should put in place special client margin arrangements to mitigate the client credit and funding liquidity risk that may arise due to market movements during severe weather trading;
• Use of specific collateral posting to reduce potential liquidity stress: Participants should consider making use of specific cash collateral and specific stock collateral to manage down the marginable position before severe weather trading day;
• Final check on remote access readiness: Participants should ensure all staff who may need to work remotely have the necessary remote access tools readily available when required, and be familiar with their available technical troubleshooting resources;
• Continuity of operations: Participants should put in place a business continuity plan in case the normal operation capability is impaired, and may consider arranging key staff to return home safely in batches.  [3 Sep 2024]

17. OTC Clear issues circular on acceptance of new Northbound swaps for clearing on Special Working Days under Swap Connect from 2 September 2024

OTC Clearing Hong Kong Limited (OTC Clear) has issued a circular to announce that with effect from 2 September 2024, it is accepting new Northbound swaps for clearing on Northbound clearing days which are not OTC Clear clearing days (Special Working Days) under the Swap Connect, in order to provide offshore market participants with Northbound swaps clearing service more consistent with that of onshore participants clearing via the Shanghai Clearing House.

From 2 September 2024, OTC Clear will perform the margin novation process, guarantee fund sizing and additional margin calculation on Special Working Days.  The circular sets out various arrangements which clearing members are advised to note, such as those relating to the incremental margin requirement, ad hoc guarantee fund resizing, and the additional margin requirement in the event the uncovered stress loss of a clearing member exceeds the threshold under the Clearing Rules.

OTC Clear has amended the following rules and procedures to reflect the above:

• OTC Clear Clearing Rules (see clean / marked-up versions); and 
• OTC Clear Clearing Procedures (see clean / marked-up versions).  [30 Aug 2024]

1. MAS Chair discusses how private markets can drive growth in Asia

MAS has published the keynote delivered by Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry and Chair of MAS, at the SuperReturn Asia Conference. The speech focused on how private markets can participate in and contribute to Asia's growth by supporting local firms, enabling green transition, and boosting the digital economy.  [25 Sep 2024]

2. MAS speech: Review of Singapore's equities market

MAS has published a keynote delivered by by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Deputy Chair of MAS, at the Securities Investors Association Singapore (SIAS) 25th Anniversary Corporate Governance Conference. The Minister discussed the review being conducted by the Equities Markets Review Group, which was set up by MAS. The Review Group is tasked with developing recommendation about positioning Singapore’s equities market for growth.  [16 Sep 2024]

3. MAS speech: Family offices and the wealth management landscape in Singapore

MAS has published the speech delivered by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Deputy Chair of MAS at the Global-Asia Family Office Summit . The Minister spoke about the continued growth in Singapore's wealth management sector, the impact the family office ecosystem has created for Singapore, and the development and upskilling of Singapore’s family office-related workforce.  [16 Sep 2024]

[No update for September 2024]

1. BNM: Malaysia and Cambodia launch cross-border QR payments connectivity

Bank Negara Malaysia (BNM) and the National Bank of Cambodia (NBC) have launched the cross-border QR payment linkage between Cambodia and Malaysia. Under this linkage, consumers and merchants in both countries will be able to make and receive instant cross-border QR payments.

The project commenced after the signing of a memorandum of understanding in February 2024 between BNM and NBC to strengthen cooperation in payment system and innovation.  [19 Sep 2024]

1. SECT: Guidelines for foreign business operators on providing investment services to Thai investors 

The Securities and Exchange Commission Thailand (SECT) has issued a statement to clarify to foreign business operators the channels and scope of eligible business activities in case of providing investment services to Thai investors. The statement also provides guidelines for facilitating ease of doing business for a better understanding of all parties involved.  [18 Sep 2024]

2. SECT consults on amendment to regulations - warning statements on the investment risks of digital tokens

SECT has published a consultation on a proposed amendment to the regulations regarding warning statements on investment risks for digital tokens. The amendment requires initial coin offering (ICO) portals and ICO issuers to put in place appropriate warning statements under the same standard and clearer warning presentation regarding investment risks. This is to ensure that investors have sufficient information regarding risks or limitations prior to using services or making investment decisions on digital tokens.

Responses to the consultation are requested by 16 October 2024.  [16 Sep 2024]

3. SECT amends regulations on the use of digital assets as a means of payment

The Securities and Exchange Commission Thailand (SECT) has announced an amendment to the regulations prohibiting the use of digital assets as a means of payment for products or services to include all current types of digital asset business operators. It has also amended regulations to allow digital asset business operators under SECT’s supervision to participate in the Programmable Payment Sandbox created by the Bank of Thailand (BoT). The amendments take effect from 6 September 2024.  [3 Sep 2024]

1. SEBI consults on mutual funds disclosures on scheme expenses, returns, yields

SEBI has published a consultation on proposed amendments to mutual funds disclosure requirements in respect of total recurring expenses, returns during the half year, compounded annualised yield and the 'risk-o-meter'. Comments on the consultation are requested by 18 October 2024.  [27 Sep 2024]

2. SEBI consults on simplified registration for foreign portfolio investors

The Securities and Exchange Board of India (SEBI) has published a consultation on proposals to simplify registration for foreign portfolio investors. Responses to the consultation are requested by 15 October 2024.  [24 Sep 2024] 

3. SEBI: Master circular on surveillance of securities market

SEBI has published a master circular which makes available consolidated information contained in all past circulars pertaining to the surveillance of securities market in one place. The master circular is categorised subject wise under various headings, including trading rules and shareholding in dematerialised mode, monitoring of unauthenticated news circulated by SEBI registered market intermediaries and disclosure reporting under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.  [24 Sep 2024]

4. IFSCA: Sovereign green bonds trading and settlement scheme

The International Financial Services Authority (IFSCA) has announced that the RBI has introduced a scheme for the trading and settlement of sovereign green bonds (SGrBs) in the International Financial Services Centre (IFSC). The scheme will facilitate easier access for non-resident investors to invest and trade in SGrBs through IFSC.  [24 Sep 2024]

5. SEBI: Modification in framework for valuation of investment portfolios of AIFs

The Securities and Exchange Board of India (SEBI) has issued a circular regarding modifications in the framework for the valuation of investment portfolios of alternative investment funds (AIFs).  The amending provisions set out in the circular come into force immediately.  [19 Sep 2024] 

6. IFSCA consults on IFSCA (Bullion Market) Regulations

IFSCA has published a consultation on the draft IFSCA (Bullion Market) Regulations, 2024. The proposed legislation aims to provide a revised regulatory framework for the bullion market ecosystem in IFSC in India and to ensure growth and development of the bullion market ecosystem in IFSC and in India at large. Responses to the consultation are requested by 20 September 2024.  [31 Aug 2024]

[No update for September 2024]

[No update for September 2024]