Series
Publications
Series
Publications
SFC widens VATP product offering: The Securities and Futures Commission (SFC) has issued a circular which relaxes licensed virtual asset trading platforms (VATPs) requirements by removing the 12 month track record for listing virtual assets to professional investors, clarifying that VATPs may distribute digital asset related products and tokenised securities in line with existing regulatory requirements, and permitting VATP groups to provide custody for tokens not traded on the platform, subject to modified licensing conditions.
HK VATPs permitted to tap overseas liquidity: The SFC now allows licensed VATPs to integrate order books with intra group overseas platforms, subject to prior SFC approval and stringent conditions to manage additional risks while maintaining client protection, for example on eligible overseas affiliates, prefunding and DVP based settlement controls, reserve and insurance or compensation arrangements and market surveillance.
Hong Kong forges ahead with cryptoasset standards: The Hong Kong Monetary Authority (HKMA) has finalised its cryptoasset standards, including new and revised Supervisory Policy Manual modules, disclosure templates and banking returns, to implement the Banking (Capital), (Disclosure) and (Exposure Limits) (Amendment) Rules 2025 with effect from 1 January 2026.
HKMA support for AI use in AML: The HKMA has been working to encourage the industry to take-up of AI solutions, and has reported strong industry momentum in using artificial intelligence to enhance AML and CTF controls. To support this, the HKMA is rolling out a programme of workshops and follow‑up publications on AI use cases (including risk detection, alert prioritisation, generative AI for suspicious transaction reports and cryptoasset-related ML/TF risk management) and will continue to monitor implementation and effectiveness through its ongoing supervisory work.
SFC streamlines UCITS fund processes: The SFC has announced immediate streamlining of its post-authorisation processes for UCITS funds, including removing prior approval in certain cases where changes are already supervised by the home regulator and aligning Hong Kong notification requirements with those in the fund’s home jurisdiction.
SFC warns firms about increased layering risk: The SFC has issued a circular highlighting an emerging trend of clients using licensed firms’ accounts (including virtual asset platforms) as conduits for rapid deposits and withdrawals with minimal trading, raising significant money laundering and terrorist financing concerns.
SFC enhances Cross-Boundary Wealth Management Connect: The SFC amendments allow licensed corporations and their Mainland partner brokers to rely on one-off written client consent (valid for up to one year) for product introductions and related research, and to conduct three-way dialogues with clients under both the Southbound and Northbound Schemes, subject to dual regulatory compliance, robust suitability, sales and research governance, and SFC approval where partnering with multiple Mainland brokers for Southbound services.
HKMA emphasises need for proportionate AML checks for PEPs: The HKMA has issued new guidance requiring authorised institutions and stored value facility licensees to apply proportionate, risk-based AML and CTF controls to politically exposed persons in line with updated Financial Action Task Force standards and the amended Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
HKMA rules clarifying premium financing activities for insurance policies: The HKMA has published the findings of its review into premium financing activities for insurance policies and sets out its expected standards for authorised institutions in a circular, requiring premium financing to be presented as a payment option and a separate arrangement from the insurance policy, with clearer product feature explanations, enhanced risk disclosure, and stronger support for customers in financial distress.
Guidelines for Banks on Information Sharing to Fight Financial Crime: The Guideline on AI-to-AI Information Sharing for the Detection or Prevention of Crime was Gazetted in late November, establishing the statutory framework and HKMA’s regulatory expectations for voluntary information sharing among authorised institutions in order to detect or prevent money laundering, terrorist financing and proliferation financing, providing a statutory “safe harbour” for good faith sharing with reasonable care and through approved channels, and prescribing detailed expectations on governance, systems and controls, data privacy and confidentiality, use of designated platforms (FINEST and ICLNet).
First finfluencer conviction: An individual was sentenced to six weeks’ imprisonment for providing unlicensed investment advice via a paid Telegram subscription chat group. During the relevant period, the individual circulated commentaries, recommendations and target prices on Nasdaq-listed securities, answered subscribers’ questions, and charged a monthly fee of HK$1,560 (US$200), generating total subscription income of HK$43,680.
MAS publishes responses to feedback received on proposed amendments to requirements for preparation of financial statements and reports under the Code of Collective Investment Schemes: The Monetary Authority of Singapore (MAS) has published responses to feedback received on their proposals to change the requirements for financial statements of authorised collective investment schemes. MAS has made amendments to the CIS Code to implement the final policy positions, which will take effect no later than FYs ending on or after 31 December 2028.
Singapore Equities Market Review: Singapore has announced various measures to strengthen the competitiveness of Singapore’s equities market, including a new dual listing bridge with Nasdaq, a S$30 million “value unlock” package for listed companies, and trading and market structure enhancements to strengthen market making, modernise post-trade custody and reduce board lot size.
MAS and OJK deepen collaboration in FinTech and digital financial assets: MAS and the Otoritas Jasa Keuangan (OJK) (the Indonesian financial regulator) have signed a renewed Memorandum of Understanding (MoU) to deepen collaboration in FinTech (including in digital financial assets and artificial intelligence), expanding on a partnership first established in 2018.
Bank of England, MAS and Bank of Thailand to explore synchronised FX settlement across borders: The Bank of England, MAS, and Bank of Thailand are collaborating to test synchronised settlement mechanisms for foreign exchange transactions, aiming to enable atomic, real-time FX settlements that are secure and interoperable across different central bank systems.
MAS and Deutsche Bundesbank sign MoU on tokenisation and cross-border settlement: MAS and the Deutsche Bundesbank signed an MoU to collaborate on cross-border digital asset settlement, aiming to enhance the speed, efficiency and interoperability of international financial transactions, including those between Singapore and Germany.
MAS announces successful live trial of settlement of interbank overnight lending using wholesale CBDC: MAS has completed a live trial settling interbank overnight loans using Singapore dollar wholesale Central Bank Digital Currency (CBDC) via the SGD Testnet (a shared ledger infrastructure).
MAS and Bank of Japan renew bilateral local currency swap arrangements until November 2028: The MAS and the Bank of Japan have renewed their bilateral local currency swap arrangement for another three years, until November 2028.
Guide on the Tokenisation of Capital Markets Products: MAS has published an updated Guide on the Tokenisation of Capital Markets Products (CMPs), focusing on the application of securities law and other relevant legislation to the issuance and offerings of tokenised CMPs, and entities that facilitate activities in relation to such tokenised CMPs.
MAS and UK FCA announce partnership on AI-in-Finance: MAS and the Financial Conduct Authority (FCA) have launched the UK-Singapore AI-in-Finance Partnership to promote safe and responsible artificial intelligence innovation in financial services.
Consultation on proposed guidelines on AI risk management for FIs: MAS is proposing to introduce Guidelines on Artificial Intelligence Risk Management to enhance management of AI risks in financial institutions and set out MAS' supervisory expectations relating to AI risk management in the financial sector. Read more in our client alert.
MAS imposes civil penalty on individual for insider trading: MAS has imposed a civil penalty of S$137,000 on an individual for insider trading in the shares of an SGX-listed company.