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第615章 《打擊洗錢及恐怖分子資金籌集條例》：金錢服務經營者海關紀律處分個案 金錢服務經營者的執法和刑事調查案件資訊 金錢服務經營者由香港海關（海關）所規管，若金錢服務經營者違反第 615 章《打擊洗錢及恐怖分子資金籌集條例》(打擊洗錢條例)所界定的指明條文，海關(關長)可以向該人採取執法行動及進行刑事調查。執法行動及進行刑事調查主要有以下目的： 1. 確保遵守法例： 確保金錢服務經營者遵守打擊洗錢條例的相關法例規定，防範洗錢和恐怖分子資金籌集活動。 2. 識別及打擊違法行為： 通過調查和執法行動,識別違反法律的行為並採取相應的懲處措施，遏制此類違法行為的發生。 3. 加強監管和風險管控： 通過執法行動，加強對金錢服務經營者的監管，促使其健全內部管控機制，降低洗錢和恐怖分子資金籌集風險。 4. 維護金融秩序穩定： 最終目的是維護香港金融市場的秩序和穩定，保護消費者權益,維護香港作為國際金融中心的地位。 5. 發揮阻嚇作用：阻嚇有關持牌人，以及對其他持牌人發揮一般的阻嚇作用 6. 打擊無牌經營: 打擊未經許可／無牌的金錢服務經營者。 第615章 《打擊洗錢及恐怖分子資金籌集條例》 第5條 關於就客戶作盡職審查及備存紀錄的規定 第29條 對經營金錢服務的限制 第35條 擬任持牌人董事須獲關長批准 第37條 擬成為持牌人合夥人的人須獲關長批准 第38條 加入新的營業處所 第40條 持牌人有責任向關長具報詳情改變 第41條 持牌人有責任向關長具報停業 附表2 關於就客戶作盡職審查及備存紀錄的規定 第615章 《打擊洗錢及恐怖分子資金籌集條例》 Total Year 2024 Year 2023 Year 2022 Year 2021 Year 2014 - 2020 第5條 關於就客戶作盡職審查及備存紀錄的規定 23 0 2 1 6 14 第29條 對經營金錢服務的限制 21 0 0 0 2 19 第35條 擬任持牌人董事須獲關長批准 1 0 1 0 0 0 第37條 擬成為持牌人合夥人的人須獲關長批准 2 0 2 0 0 0 第38條 加入新的營業處所 2 0 0 2 0 0 第40條 持牌人有責任向關長具報詳情改變 19 3 7 8 0 1 第41條 持牌人有責任向關長具報停業 3 0 1 2 0 0 附表2 關於就客戶作盡職審查及備存紀錄的規定 10 0 2 2 2 4 我們整理了香港海關對金錢服務經營者的執法和刑事調查案件的公開資訊，並將其轉化為天匯合規資料庫內的數據。這有助於我們分析監管趨勢、識別問題模式，從而更好地了解監管動態。 編號 個案 經營者觸犯《條例》 違反事項 詳情 海關紀律處分行動 72 紀律處分行動聲明 (2024年4月30日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的十四個銀行帳戶已改變的詳情。 命令採取糾正行動 71 紀律處分行動聲明 (2024年4月30日) 40 沒在指定時間內具報合夥人/董事/股東詳情改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報二名董事已改變的詳情。 命令採取糾正行動及罰款 70 紀律處分行動聲明 (2024年4月30日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的一個銀行帳戶已改變的詳情。 罰款 69 紀律處分行動聲明 (2023年9月20日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的一個銀行帳戶已改變的詳情。 命令採取糾正行動 68 紀律處分行動聲明 (2023年6月29日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的十三個銀行帳戶已改變的詳情。 命令採取糾正行動 67 紀律處分行動聲明 (2023年6月29日) 37 / 40 沒在指定時間內具報合夥人/董事/股東詳情改變 (i) 《條例》第 37 條，即沒有得到海關關長先書面批准下委任一人成為持牌金錢服務經營者的合夥人；及 (ii) 《條例》第 40 條，即沒有在指定時間內向海關關長具報一名合夥人已改變的詳情。 命令採取糾正行動 66 紀律處分行動聲明 (2023年4月25日) 5 / 40 / 附表2 (i) 不符合盡職審查及備存紀錄規定 (ii) 沒在指定時間內具報合夥人/董事/股東詳情改變 (i) 《條例》第 5(5)條及附表 2 第 13 條，即在進行 69 宗匯款交易之前，沒有記錄收款人的地址； (ii) 《條例》第 5(5) 條及附表 2 第 20 條，即沒有備存1宗匯款交易的匯款人的識別文件；及 (iii) 《條例》第 40 條，即沒有在指定時間內向海關關長具報一名最終擁有人及一名董事已改變的詳情。 公開譴責、採取糾正行動及罰款 65 紀律處分行動聲明 (2023年1月20日) 5 / 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《條例》第 5(5)條及附表2 第 13 條，即沒有在進行九宗匯款交易之前記錄收款人地址。 公開譴責及命令採取糾正行動 64 紀律處分行動聲明 (2023年1月20日) 37 / 40 / 41 (i) 沒有預先批准下委任/改變合夥人 (ii) 沒在指定時間內具報合夥人/董事/股東詳情改變 (iii) 沒在指定時間內具報指明的營業處所停業日期 (i)《條例》第37條即沒有得到海關關長預先書面批准下委任兩人成為持牌金錢服務經營者的合夥人； (ii)《條例》第40條即沒有在指定時間內向海關關長具報兩名合夥人已改變的詳情； 及 (iii)《條例》第41條即沒有在指定時間內向海關關長具報在牌照指明的處所營業的停業日期。 命令採取糾正行動 63 紀律處分行動聲明 (2023年1月20日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的四個銀行帳戶已改變的詳情 命令採取糾正行動 62 紀律處分行動聲明 (2023年1月20日) 35 / 40 (i) 沒有預先批准下委董事 (ii) 沒在指定時間內具報合夥人/董事/股東詳情改變 (i) 《條例》第 35 條，即沒有得到海關關長預先書面批准下委任一人成為持牌金錢服務經營者的董事; 及 (ii) 《條例》第 40 條，即沒有在指定時間內向海關關長具報一名最終擁有人及一名董事已改變的詳情。 命令採取糾正行動 61 紀律處分行動聲明 (2022年10月28日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的五個銀行帳戶已改變的詳情。 命令採取糾正行動 60 紀律處分行動聲明 (2022年10月28日) 38 / 40 / 41 (i) 沒有預先批准下加入新的營業處所 (ii) 沒在指定時間內具報銀行帳戶改變 (iii) 沒在指定時間內具報指明的營業處所停業日期 (iv) 沒在指定時間內交回牌照 (i) 《條例》第 38 條，即在沒有得到海關關長事先批准的牌照指明的處所經營金錢服務; (ii) 《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的兩個銀行帳戶已改變的詳情; (iii) 《條例》第 41 條，即沒有在指定時間內向海關關長具報在牌照指明的處所營業的停業日期; 及 (iv) 《條例》第 41 條，即沒有在指定時間內將牌照交回海關關長。 命令採取糾正行動 59 紀律處分行動聲明 (2022年8月5日) 5 / 40 / 附表2 (i-ii) 不符合盡職審查及備存紀錄規定 (iii) 沒在指定時間內具報銀行帳戶改變 (i) 《條例》第 5(5)條及附表 2 第 13 條，即在進行 15 宗匯款交易之前，沒有核實匯款人的識別文件、記錄匯款人的識別文件的號碼或收款人的地址; (ii) 《條例》第 5(5) 條及附表 2 第 20 條，即沒有備存15宗匯款交易的支付記錄的任何正本或副本; 及 (iii) 《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的一個銀行帳戶已改變的詳情。 公開譴責及命令採取糾正行動 58 紀律處分行動聲明 (2022年8月5日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的十個銀行帳戶已改變的詳情。 命令採取糾正行動 57 紀律處分行動聲明 (2022年8月5日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關關長具報用作提供金錢服務的四個銀行帳戶已改變的詳情。 命令採取糾正行動 56 紀律處分行動聲明 (2022年8月5日) 38 / 40 / 41 (i) 沒有預先批准下加入新的營業處所 (ii) 沒在指定時間內具報地址詳情改變 (iii) 沒在指定時間內具報指明的營業處所停業日期 (iv) 沒在指定時間內交回牌照 (i) 《條例》第 38 條，即在沒有得到海關關長事先批准的牌照指明的處所經營金錢服務; (ii) 《條例》第 40 條，即沒有在指定時間內向海關關長具報主要地址已改變的詳情; (iii) 《條例》第 41 條，即沒有在指定時間內向海關關長具報在牌照指明的處所營業的停業日期; 及 (iv) 《條例》第 41 條，即沒有在指定時間內將牌照交回海關關長 命令採取糾正行動 55 紀律處分行動聲明 (2022年2月18日) 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《條例》附表 2 第 13 條，即沒有在進行匯款交易之前記錄接獲指示的時間及收款人地址。 公開譴責、罰款四萬五千元及命令採取糾正行動 54 紀律處分行動聲明 (2022年2月18日) 40 沒在指定時間內具報合夥人/董事/股東詳情改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關具報最終擁有人已改變的詳情。 命令採取糾正行動 53 紀律處分行動聲明 (2022年2月18日) 40 沒在指定時間內具報銀行帳戶改變 持牌金錢服務經營者違反《條例》第 40 條，即沒有在指定時間內向海關具報用作提供金錢服務的銀行帳戶已改變的詳情。 罰款及命令採取糾正行動 52 紀律處分行動聲明 (2021年11月2日) N/A N/A 香港海關（海關）於二零二一年十一月二日對兩間違反《打擊洗錢及恐怖分子資金籌集條例》（《條例》）訂明發牌規定的持牌金錢服務經營者採取紀律處分行動，包括施加罰款及命令他們採取糾正行動。海關人員早前發現，上述金錢服務經營者沒有根據《條例》第40條的規定，沒有在自詳情改變發生之日起計的一個內，藉書面向關長具報詳情改變，即加入／刪除作金錢服務的銀行戶口。針對上述違規情況，海關向他們採取紀律處分行動，藉此向業界發出具阻嚇性的信息。 N/A 51 雜貨店東主夫婦和女店員因無牌經營金錢服務被判罪成(2021年11月8 日) 29 無牌經營金錢服務 一間雜貨店的男東主及其妻子和一名女店員因無牌經營金錢服務被判罪成，今日（十一月八日）在九龍城裁判法院被判罰款一萬元至三萬五千元。海關人員根據資料，於去年六月十六日到一間位於旺角的雜貨店喬裝顧客，並要求匯款到印尼。店東妻子根據指示，把載有匯款資料的紙張交給店員處理。該店員隨即向喬裝成顧客的海關人員收取款項，並為該交易簽發匯款單。由於該店鋪的金錢服務經營者牌照已于二○一九年十二月十一日到期，上述兩人及店鋪東主均被視作在沒有牌照的情況下經營金錢服務。根據《打擊洗錢及恐怖分子資金籌集條例》（《條例》），任何人士欲經營匯款及／或貨幣兌換服務必須向海關申領牌照，無牌經營金錢服務即屬違法，一經定罪，最高可被判罰款十萬元及監禁六個月。 法院裁判罰款 50 紀律處分行動聲明 (2021年6月4日) 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》附表 2 第 13 條。 公開譴責及命令採取糾正行動 49 紀律處分行動聲明 (2021年6月4日) 5 / 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》附表 2 第 13 條及第 5 部第 40 條。 公開譴責及命令採取糾正行動 48 紀律處分行動聲明 (2021年6月4日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責及命令採取糾正行動 47 紀律處分行動聲明 (2021年6月4日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責及命令採取糾正行動 46 紀律處分行動聲明 (2021年6月4日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責及命令採取糾正行動 45 男子串謀無牌經營金錢服務被判罪成(2021年5月25日) 29 無牌經營金錢服務 一名男子因串謀無牌經營金錢服務被判罪成，今日（五月二十五日）在觀塘裁判法院被判罰款一萬五千元。海關人員根據舉報，到一間位於尖沙咀涉嫌無牌經營的找換店進行調查。涉案男子向喬裝顧客的海關人員就人民幣匯款作出匯率報價，涉嫌串謀在沒有牌照的情況下經營金錢服務。 法院裁判罰款 44 紀律處分行動聲明 (2021年1月12日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 35(1)條及第 40(1)條。 公開譴責及命令採取糾正行動 43 紀律處分行動聲明 (2021年1月12日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 30(5)條及第 31(5)條的規定下，海關關長施加的牌照條件。 公開譴責及命令採取糾正行動 42 男子無牌經營金錢服務被判罪成 (2020年11月5日) 29 無牌經營金錢服務 "一名男子因無牌經營金錢服務被判罪成，今日（十一月五日）在觀塘裁判法院被判罰款四千元。海關人員早前接獲舉報，經調查後發現該名男子於二○一九年六月至九月期間，透過網上交易平台招攬客人，在沒有牌照的情況下收取費用並提供匯款服務。" 法院裁判罰款 41 金錢服務經營者無牌經營被判罪成(2020年5月20日) 29 無牌經營金錢服務 一間資訊科技公司及其董事因無牌經營金錢服務被判罪成。該資訊科技公司早前被判罰款二萬五千元，其董事於今日（五月二十日）在九龍城裁判法院被判監禁兩個月，緩刑十二個月及罰款二萬五千元。海關人員早前接獲舉報，經調查後發現一間位於灣仔的資訊科技公司及其董事在沒有牌照的情況下經營金錢服務。 法院裁判罰款監禁 40 紀律處分行動聲明 (2020年1月17日) 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》附表 2 第 13(2)(c)(iii)條及第13(2)(c)(iv)條。公開譴責及罰款八千元 公開譴責及罰款 39 金錢服務經營者提供虛假資料及無牌經營被判罪成 (2020年1月15日) 29 無牌經營金錢服務 一名男子因在金錢服務經營者牌照申請書中提供虛假資料及無牌經營金錢服務，今日（一月十五日）在觀塘裁判法院被裁定罪成，上述兩項罪行各被判監禁兩個月，緩刑兩年，一個月刑期同期執行。一間位於觀塘的金錢服務經營者早前在牌照申請書中提供虛假資料，因此未能取得海關批出的牌照，但其後被發現在沒有牌照的情況下經營金錢服務 法院裁判監禁 38 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責 37 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責 36 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 39A 條。 公開譴責 35 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責 34 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責 33 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 38 條。 公開譴責及命令採取糾正行動 32 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 40 條。 公開譴責及命令採取糾正行動 31 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 35 條及第 40 條。 公開譴責及命令採取糾正行動 30 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 38 條。 公開譴責及命令採取糾正行動 29 紀律處分行動聲明 (2020年1月9日) 5 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》第 5 部第 35 條及第 40 條。 公開譴責及命令採取糾正行動 28 男子協助及教唆他人無牌經營金錢服務被判罪成 (2020年1月2日) 29 無牌經營金錢服務 一名男持牌金錢服務經營者因協助及教唆他人無牌經營金錢服務，今日（一月二日）在九龍城裁判法院被判罰款一萬二千元，以及被取消持有金錢服務經營者牌照的資格兩個月。海關人員早前接獲舉報並採取行動，發現一間位於大角咀的雜貨店涉嫌在該名持牌人協助下，無牌經營金錢服務。經營該雜貨店的一名男東主及一名女職員因無牌經營金錢服務，早前已分別被法庭判處罰款一萬元及五千元，以及被取消持有金錢服務經營者牌照的資格六個月。 法院裁判罰款, 停牌六個月 27 金錢服務經營者無牌經營被判罪成 (2019年10月15日) 29 無牌經營金錢服務 一名男子因無牌經營金錢服務，今日（十月十五日）在觀塘裁判法院被判一百小時社會服務令。海關人員早前根據接獲的資料採取行動，發現該名男子懷疑在沒有牌照的情況下在互聯網上經營金錢服務。 法院裁判一百小時社會服務令 26 紀律處分行動聲明 (日期 2019年9月25日) 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集條例》附表 2 第 3(1)(b)條、第 13(2)(c)(i)條、第 13(2)(c)(ii)條及第 13(2)(c)(iii)條 公開譴責 25 金錢服務經營者無牌經營被判罪成 (2019年8月22日) 29 無牌經營金錢服務 一名男子因無牌經營金錢服務，今日（八月二十二日）在粉嶺裁判法院被判罰款八千元。海關人員早前接獲舉報，發現一間位於元朗的雜貨店懷疑在沒有牌照的情況下經營金錢服務。 法院裁判罰款 24 金錢服務經營者無牌經營被判罪成 (2019年6月20日) 29 無牌經營金錢服務 兩名女子因無牌經營金錢服務，今日（六月二十日）在九龍城裁判法院各被判罰款一萬伍千元及被取消持有金錢服務經營者牌照的資格十二個月。海關人員早前進行巡查，發現一間位於土瓜灣的珠寶金行懷疑在沒有牌照的情況下經營金錢服務。 法院裁判罰款, 停牌十二個月 23 金錢服務經營者無牌經營被判罪成 (2019年5月15日) 29 無牌經營金錢服務 一名男子因無牌經營金錢服務，今日(五月十五日)在屯門裁判法院被判罰款八千元。海關人員早前進行巡查，發現一間位於天水圍一個購物商場內的珠寶金行懷疑在沒有牌照的情況下經營金錢服務。 法院裁判罰款 22 金錢服務經營者無牌經營被判罪成 (2019年4月24日) 29 無牌經營金錢服務 一名男子因無牌經營金錢服務，今日(四月二十四日)在沙田裁判法院被判罰款六千元及被取消持有金錢服務經營者牌照的資格六個月。海關人員早前進行巡查，發現一間位於沙田的珠寶金行懷疑在沒有牌照的情況下經營金錢服務。根據《打擊洗錢及恐怖分子資金籌集條例》，任何人士欲經營匯款及/或貨幣兌換服務必須向海關申領牌照，無牌經營金錢服務即屬違法，一經定罪，最高可被判罰款十萬元及監禁六個月。 法院裁判罰款, 停牌六個月 21 香港海關對違規金錢服務經營者採取執法行動 (日期 2019年3月21日) N/A N/A 一間找換店涉嫌違反《打擊洗錢及恐怖分子資金籌集條例》（《條例》），今日（三月二十一日）被香港海關暫時吊銷其金錢服務經營者牌照。海關數月前接獲舉報，指一間找換店在深水埗及長沙灣經營的三間店舖涉嫌違反《條例》。經海關人員深入調查及搜證後，發現該找換店涉嫌違反《條例》規定及未有採取所有合理措施減低洗錢及恐怖分子資金籌集風險，以致其持牌人或不再屬經營金錢服務的適當人選。海關人員今日向該找換店發出書面通知，暫時吊銷其金錢服務經營者牌照，即時生效。此外，海關亦同時提醒該找換店必須以適當方式處理尚未完成的交易及款項。海關亦發現有關找換店的男董事涉嫌將虛假商品說明應用於匯款服務，向顧客作出虛假聲稱，指會將款項匯到顧客指定的銀行帳戶，但其後未有提供相關服務，違反《商品說明條例》。海關今日拘捕一名四十七歲男子。 案件仍在調查中。 N/A 20 金錢服務經營者無牌經營被判罪成 (日期 2019年2月14日) 29 無牌經營金錢服務 一名男子及一名女子因無牌經營金錢服務，今日(二月十四日)在粉嶺裁判法院各分別被判罰款一萬元及五千元。海關人員早前進行巡查，發現一間位於元朗的珠寶金行懷疑在沒有牌照的情況下經營金錢服務。 法院裁判罰款 19 香港海關打擊無牌經營金錢服務 (日期 2018年10月4日) N/A N/A 香港海關今日（十月四日）調查一宗懷疑沒有牌照經營金錢服務，違反《打擊洗錢及恐怖分子資金籌集條例》（《打擊洗錢條例》）的個案。海關人員早前接獲舉報，今日突擊搜查大角咀一雜貨店，發現一名男子及其妻子在未獲海關關長發出牌照情況下為外籍家庭傭工提供匯款服務。案件仍在調查中。 N/A 18 香港海關打擊無牌經營金錢服務 (日期 2018年5月23日) N/A N/A 香港海關今日（五月二十三日）拘捕一名珠寶金行的男東主，他涉嫌在沒有牌照的情況下經營金錢服務，違反《打擊洗錢及恐怖分子資金籌集條例》（《條例》）。海關人員早前進行巡查，發現一間位於沙田的商店懷疑在沒有牌照的情況下經營金錢服務。海關今日派員喬裝顧客到該位於購物商場內的珠寶金行進行貨幣兌換行動，發現該珠寶金行除經營珠寶零售業務外，同時在未獲海關關長發出牌照下經營金錢服務業務。案件仍在調查中。 N/A 17 香港海關打擊無牌經營金錢服務 (日期 2018年4月24日) N/A N/A 香港海關昨日（四月二十四日）採取打擊無牌經營金錢服務行動，發現一間珠寶金行涉嫌在沒有牌照的情況下經營金錢服務，違反《打擊洗錢及恐怖分子資金籌集條例》（條例）。海關人員早前接獲舉報，昨日喬裝顧客到一間位於天水圍一個購物商場內的珠寶金行進行貨幣兌換行動，發現該珠寶金行除經營珠寶零售業務外，同時在未獲海關關長發出牌照下經營金錢服務業務。案件仍在調查中。 N/A 16 金錢服務經營者無牌經營被判罪成 (日期 2018年3月9日) 29 無牌經營金錢服務 一名男子及一名女子因無牌經營金錢服務，今日(三月九日)在屯門裁判法院各被判罰款一萬五千元及被取消持有金錢服務經營者牌照資格六個月。海關人員早前接獲舉報，發現該名男子及女子於二○一七年三月九日在未獲海關關長發出有關牌照情況下經營金錢服務，於是他們被共同控以有關罪行。 法院裁判罰款, 停牌六個月 15 金錢服務經營者無牌經營被判罪成 (日期 2018年3月5日) 29 無牌經營金錢服務 一名女子因無牌經營金錢服務，今日(三月五日)在西九龍裁判法院被判罰款一萬元。海關人員早前根據接獲的資料採取行動，發現該名女子於二○一六年四月五日至十月七日期間，在未獲海關關長發出有關牌照情況下而經營金錢服務。 法院裁判罰款 14 紀律處分行動聲明 (日期2017年12月22日) 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集(金融機構)條例》附表 2 第 3(1)(b)條、第13(2)(a)條、第 13(2)(b)條、第 13(2)(c)(ii)條、第13(2)(c)(iii)條、第 13(2)(c)(v)條及第 20(1)條。罰款二萬一千元 罰款 13 金錢服務經營者無牌經營被判罪成 (日期 2017年11月29日) 29 無牌經營金錢服務 一名女子因無牌經營金錢服務, 今日(11月29日)法院裁判罰款一萬五千元 法院裁判罰款 12 金錢服務經營者無牌經營被判罪成 (日期 2017年8月28日) 29 無牌經營金錢服務 一間公司及其兩名職員因無牌經營金錢服務，今日(八月二十八日)在西九龍裁判法院被判罰款共一萬六千元。海關人員早前根據接獲的資料採取行動，發現該公司及其兩名職員於二○一六年八月九日至八月十七日期間，在未獲海關關長發出有關牌照情況下而經營金錢服務。 法院裁判罰款 11 金錢服務經營者無牌經營被判罪成(日期 2017年6月1日) 29 無牌經營金錢服務 一間公司東主因無牌經營金錢服務，今日（六月一日）在粉嶺裁判法院被判罰款一萬元。海關人員早前發現該公司東主於二○一三年十月至二○一六年五月期間，在未獲海關關長發出有關牌照下而經營金錢服務。 法院裁判罰款 10 金錢服務經營者無牌經營被判罪成 (日期 2017年1月25日) 29 無牌經營金錢服務 一間公司及其董事因無牌經營金錢服務，今日(一月二十五日)在東區裁判法院被判罰款共 28,000 元及被取消持有金錢服務經營者牌照的資格，分別為期 6個月及12個月。海關人員早前進行巡查時發現該公司兩間分店於二○一五年十月十一日至十二月四日期間，在未獲海關關長發出有關牌照情況下經營金錢服務。 法院裁判罰款, 停牌 9 金錢服務經營者違反客戶盡職審查及備存紀錄規定被判罪成 (日期2017年1月18日) 5 不符合盡職審查及備存紀錄規定 一間持有金錢服務經營者牌照的公司因未能遵守《打擊洗錢及恐怖分子資金籌集(金融機構)條例》（《條例》）所訂明的客戶盡職審查及備存紀錄的規定，今日(一月十八日)在東區裁判法院被判罰款126,000元。海關人員在一次合規視察中，發現該公司沒有就二○一五年五月至六月期間進行的兩項滙款交易記錄匯款人的身分，以及沒有就二○一五年五月至十月期間進行的十項滙款交易記錄匯款人的地址。 法院裁判罰款 8 金錢服務經營者違反客戶盡職審查的規定被判罰款(日期2016年10月3日) 5 不符合盡職審查及備存紀錄規定 一名持有金錢服務經營者牌照的合夥人今日(十月三日)在東區裁判法院被裁定十二項沒有根據《打擊洗錢及恐怖分子資金籌集(金融機構)條例》進行客戶盡職審查的控罪罪成，合共被判罰款二萬四千元。海關人員在一次合規視察中，發現該名女合夥人並沒有就於二○一四年八月至二○一五年七月期間進行的十二項滙款交易記錄匯款人的姓名，識別文件的號碼及地址。 罰款 7 女子無牌經營金錢服務被判罰款 (日期2016年6月30日) 29 無牌經營金錢服務 一名女子今日（六月三十日）在觀塘裁判法院被裁定無牌經營金錢服務罪成，罰款二萬五千元。海關網上巡查發現該名女子透過本地拍賣網站向顧客提供滙款服務，進一步調查後發現她於二○一五年十一月至二○一六年六月期間，未獲海關關長發出有關牌照而經營金錢服務。 罰款二萬五千元 6 金錢服務經營者違反發牌規定被判罪成(日期2016年4月12日) 40 沒在指定時間內具報銀行帳戶改變 一間金錢服務經營公司違反兩項《打擊洗錢及恐怖分子資金籌集(金融機構)條例》所訂立的發牌規定，今日(四月十二日)在東區裁判法院被判罪成，合共被判罰款港幣4,000元。海關人員於去年根據接獲的資料採取行動，發現該公司遺漏了陳述銀行帳戶的資料，亦沒有按條例規定在一個月內，書面向關長具報有關銀行帳户要項上的改變。 罰款4000元 5 紀律處分行動聲明 (日期2015年11月25日) 附表2 不符合盡職審查及備存紀錄規定 持牌金錢服務經營者違反《打擊洗錢及恐怖分子資金籌集(金融機構)條例》附表 2 第 13(2)(a)條、第 13(2)(b)條、第 13(2)(c)(i)條、第 13(2)(c)(ii)條、第 13(2)(c)(iii)條、第 13(2)(c)(v)條、第 20(1)(b)條及第 21 條。 公開譴責 4 金錢服務經營者違反客戶盡職審查的規定被判罪成 (日期2015年6月24日) 5 不符合盡職審查及備存紀錄規定 一名持有金錢服務經營者牌照的東主今日(六月二十四日)在九龍城裁判法院承認二十二項沒有根據《打擊洗錢及恐怖分子資金籌集（金融機構）條例》進行客戶盡職審查的控罪，合共被判罰款四十二萬八千元。海關人員在一次合規視察中，發現該名獨資經營的女東主並沒有就於二○一三年七月至二○一四年五月期間進行的二十二項匯款及貨幣兌換交易作識別、核實及記錄客戶的身分。 罰款四十二萬八千元 3 金錢服務經營者違反備存紀錄規定被判罪成 (日期2015年6月18日) 5 不符合盡職審查及備存紀錄規定 一名持有金錢服務經營者牌照的東主較早時承認十二項沒有根據《打擊洗錢及恐怖分子資金籌集(金融機構)條例》進行客户盡職審查及備存紀錄的控罪，今日(六月十八日)在粉嶺裁判法院被判社會服務令二百小時。海關人員在一次合規視察中，發現該名獨資經營的女東主並沒有就於二○一三年五月至二○一四年四月期間進行的十二項滙款交易備存相關客户的紀錄及文件。 社會服務令二百小時 2 金錢服務經營者牌照逾期繼續經營被判罪成 (日期2015年2月26日) 29 無牌經營金錢服務 一間擁有五間分店的公司及其董事今日(2月26日)在東區裁判法院承認無牌經營金錢服務的控罪，違反經營匯款及/或貨幣兌換服務必須向海關申獲有效牌照的法例要求，合共被判罰款港幣$30,000 元。上述公司的牌照已於 2015 年 1 月 13 日屆滿，而公司未有在該日前為牌照續期。海關人員其後展開調查，發現該公司於 2015 年 1 月 13 日至 1 月 30 日期間在牌照逾期的情況下，仍然繼續經營金錢服務。海關遂提出檢控。 罰款30,000 元 1 無牌經營金餞服務被判緩刑 (日期2014年10月9日) 29 無牌經營金錢服務 一名女子2014年10月9日承認無牌經營金錢服務的控罪,法院裁判監禁2個月, 緩刑兩年, 取消持有金錢服務經營者牌照資格12個月 法院裁判監禁, 停牌 Version: 21/06/2024

The topics discussed in this monthly newsletter for insurance are as follows: ComplianceOne Insurance Newsletter – Oct 2024 The topics discussed in this monthly newsletter are as follows: 1. Hong Kong Insurance Authority Unveils InsurTech Forum at FinTech Week 2024 2. Guangdong authorities probe illegal cross-border insurance sales IA News Updates 1. InsurTech Forum Unveiled at Hong Kong FinTech Week 2024 The IA unveiled the InsurTech Forum on Day 2 of the Hong Kong FinTech Week 2024, co-hosted with Invest Hong Kong. This event brought together industry leaders and technology experts for insightful dialogue on various topics. Mr. Clement Cheung, CEO of the IA - keynote presentation Emphasized the dire consequences of ignoring climate change and cybersecurity threats. Efforts to foster an ecosystem for insurance-linked securities, introduce the Cyber Resilience Assessment Framework, and commission a survey on AI adoption in the insurance sector. Outlined the IA's pragmatic approach to promoting AI adoption, stressing the importance of human oversight to complement AI's powerful capabilities in client acquisition, policy underwriting, customer service, claims settlement, and fraud detection. SIGNIFICANCE: The InsurTech Forum highlighted panel discussions on AI, data analytics, and next-generation innovation, reflecting the growing trend and increasing demand for AI-driven solutions. Emphasizing the necessity for a robust yet flexible regulatory framework, the forum underscored the importance of ensuring the fair, transparent, and ethical use of AI in the rapidly evolving fintech landscape. Cross-Border News Updates 2. Guangdong authorities probe illegal cross-border insurance sales In Accordance with Cailian Press on 13 Oct 2024, industry insiders have reported that the Guangdong Financial Regulatory Bureau has launched a special campaign to investigate illegal sales of overseas insurance products and cross-border insurance violations among banks and insurance institutions (excluding Shenzhen). This initiative aims to ensure regulatory compliance and protect consumer interests. This crackdown aligns with the HKIA circular issued on 22 May 2024, which targets non-compliant business models that incentivize unlicensed selling of long-term insurance policies to Mainland China visitors. The circular emphasizes the importance of licensed intermediaries and proper conduct to maintain market integrity. Potential Impact in Hong Kong The investigation by the Guangdong regulator could affect Hong Kong insurance industries if any unlicensed third-parties participated with any regulated activities, such practices would be considered illegal, and companies involved could face penalties and stricter oversight. SIGNIFICANCE: Both regulators aim to make sure that regulated activities are conducted and monitored by the appropriate regulatory authority within their respective jurisdictions. Taking significant steps to ensure the integrity of the insurance market and protect consumers. These measures reflect a broader commitment to maintaining a robust and transparent financial ecosystem in the region. [End of ComplianceOne Insurance Newsletter – October 2024] For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================= The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or WhatsApp us at (852) 95164607 . Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk

The topics discussed in this monthly newsletter are as follows: ComplianceOne Newsletter - July 2023 The topics discussed in this monthly newsletter are as follows: SFC launched Type 13 regulated activity for applications from depositaries of public funds Ensuring compliance when Streamlined Approach (“SLA”) is applied to Sophisticated Professional Investors (“SPIs”) SFC welcomes IOSCO endorsement of new sustainability disclosure standards HashKey partnered with Longbridge Whales and Quam Securities to launch First VA Online Trading Solution SFC and AFRC joined forces to combat misconduct by listed issuers Court convicted and fined cases for unlicensed activity SFC banned RaffAello Capital Limited’s former responsible officer over IPO sponsor failures SFC fined Changjiang Asset Management (HK) Limited $3.4 million for internal control failures MARKET NEWS 1. SFC launched Type 13 regulated activity for applications from depositaries of public funds The SFC started accepting applications for carrying on Type 13 regulated activity (RA 13) under a new regime on 27 July 2023 which will bring depositaries of SFC-authorised collective investment schemes under the SFC’s direct supervision. The new regime will take effect on 2 October 2024. Depositaries operating in Hong Kong need to submit RA 13 applications through WINGS, the SFC’s online submission platform, on or before 30 November 2023 . SIGNIFICANCE: For reason that starting from 2 October 2024, trustees and custodians (i.e., depositaries) of SFC-authorised collective investment schemes (CISs), unless exempted, will be required to be licensed by or registered with the SFC for Type 13 regulated activity (RA 13) under the SFO. Existing market practitioners are advised to seek guidelines from another Circular posted the same date for details of “ who needs to be licensed or registered ?” 2. Ensuring compliance when Streamlined Approach is applied to sophisticated professional investors A joint circular was published on 28 July 2023 by the HKMA and the SFC concerning the introduction of a new category of sophisticated professional investors (“SPI”) who possess higher levels of net worth and knowledge or experience, particularly in relation to the suitability assessment and product disclosure processes applied. Suitability assessment is a risk-based process that involves intermediaries matching of investment products with the personal circumstances and risk tolerance of their clients. Bearing in mind to clarify the expected standards on how the suitability assessment could be conducted and how product information could be explained and disclosed, intermediaries could tailor point-of-sale procedures to the personal circumstances of SPIs. Detailed guidelines are available from the Annex 1 and Annex 2 of the Circular to facilitate the application of a Streamlined Approach (“SLA”) . In essence, under the Streamlined Approach, the intermediary is not required at a transaction level to match the SPI’s risk tolerance level, investment objectives and investment horizon, or to assess the SPI’s knowledge, experience and concentration risk. Despite of this, intermediaries can also provide any explanation of product characteristics, nature and extent of risks to the SPI beforehand. SIGNIFICANCE: Under the new SPI regime with the application of Streamlined Approach, the intermediaries have to ensure the followings are in place with the SPI as a matter of compliance : (1) The SPI has to specifiy the Product Category within which investment transactions can be executed under the SLA, namely, the Eligible Investment Transactions ; (2) Product Category Information Statement : made available to the SPI explaining the terms and features, characteristics, nature and extent of risks of investment products within the Product Category as defined above; (3) Streamlined Threshold : the SPI has to specify a maximum threshold of investment, as an absolute amount or a percentage relative to the SPI’s assets under management (“AUM”) with the intermediary; (4) The intermediaries have to devise designated accounts (or sub-accounts) to consolidate Eligible Investment Transactions of the SPI executed under the SLA, and ensure that the Streamlined Thresholds are strictly observed. 3. SFC welcomes IOSCO endorsement of new sustainability disclosure standards SFC greeted the endorsement by the International Organization of Securities Commissions (IOSCO) of the IFRS Sustainability Disclosure Standards published by the International Sustainability Standards Board (ISSB). The SFC will work with relevant government bureaux, other financial regulators and the SEHK to develop a comprehensive roadmap for adoption of the ISSB standards in Hong Kong. SEHK has a proposed disclosure requirements for listed companies, making reference to the ISSB’s draft for climate-related disclosures. The final SEHK requirements will take account of the consultation responses and the final ISSB standards. SIGNIFICANCE: These deliberate arrangements are actually in line with what the SFC has been working on the climate-related risk disclosure requirement applicable to the licensed corporations since November last year. 4. HashKey partnered with Longbridge Whales and Quam Securities to launch First VA Online Trading Solution HashKey Group’s SFC-licensed subsidiary, Hash Blockchain Limited, has announced its strategic partnership agreement with Quam Securities and Longbridge Whale to provide virtual asset online trading services to securities firms and their clients through omnibus account and FIX API connection with HashKey’s exchange business HashKey PRO. Brokers and the clients can then seamlessly connect to this liquidity pool and market data to trade VAs anytime and anywhere around the clock! SIGNIFICANCE: At the "Far Beyond" Longbridge Whale new product launch event in Hong Kong, the first virtual asset online trade for securities firms had been successfully demonstrated and completed at the event, marking a new chapter for the adoption of virtual assets by local and global brokers. Long Bridge Whale is the first broker which serves as a BSS Vendor for VA dealing, and Quan Securities is the first client broker which provides VA brokerage, the new partnership of the three marks the benchmark for commencement of a new VA dealing environment more accessible to the general public. Leveraged up with collaboration from the private sector, the momentum to evolve as a virtual asset financial hub as advocated by the HKSAR government has got started off! 5. SFC and AFRC joined forces to combat misconduct by listed issuers The SFC and the Accounting and Financial Reporting Council (AFRC) issued the first joint statement on 13 July 2023 as part of their enhanced collaboration in the regulation of the securities and futures markets in Hong Kong. The joint statement addressed the observable increase in cases of listed issuers channelling a company’s funds to third parties in dubious circumstances under the pretext of loans which were granted without sufficient commercial rationale, and in some cases without adequate risk assessment or due diligence. The listed issuers suffered significant losses when loans were not repaid. In the light of thes findings, the joint statement set out the conduct standards and practices that listed issuers, their directors, audit committees and auditors should adhere to in relation to loans and similar arrangements. SIGNIFICANCE: As Ms Julia Leung, Chief Executive Officer of the SFC had said, “ The joint statement demonstrates the commitment of the SFC and the AFRC to promoting good corporate governance and maintaining the integrity of the capital market, as well as underscores our collective efforts to establish a more effective regulatory framework to uphold Hong Kong’s reputation as an international financial centre .” ENFORCEMENT NEWS 6. Court convicted and fined cases for unlicensed activity The Eastern Magistrates’ Court had convicted Mr Ben Ngai Ping Kuen (on 5 July 2023) and Mr Cheung Wing Hung (on 27 July 2023) separately for holding themselve out as performing a regulated function in relation to dealing in securities as an agent of entities not licensed by the SFC. It was found that between April 2016 and June 2017, both Ngai and Cheung had enticed three retail investors to invest in so-called “US-listed” shares issued by First Asia Holdings Limited (FAH) and/or First Asia Capital Limited (FAC), and to finance FAH and/or FAC in their preparation for the purported secondary listing of FAH shares in Hong Kong. The investors were mistakenly represented that if the the secondary listing in Hong Kong was successful, the value of their investment in FAH shares would increase by 100% and that if they intended to realise their investment return, they would have to swap their FAH shares for the shares in a Hong Kong-listed corporation, namely PF Group Holdings Limited (PF). By the time the investors received their PF shares, the price of the PF shares had fallen substantially. Both of Ngai and Cheung pleaded guilty to the offence and each of them were fined HKD6,000, and paid the SFC for the investigation costs. 7. SFC banned RaffAello Capital Limited’s former responsible officer over IPO sponsor failures It was published on 11 July 2023 by the SFC that Mr Tsang Kwong Fai, a former responsible officer (RO) and sponsor principal of RaffAello Capital Limited (RaffAello), was prohibited from re-entering the industry for two years from 11 July 2023 to 10 July 2025 for breaching the SFC’s Code of Conduct. The SFC had found that Tsang failed to discharge his duties as a sponsor principal, RO and member of the senior management of RaffAello to exercise due diligence in handling the listing applications, to supervise his subordinates in carrying out the sponsor work, and ensure appropriate standards of conduct were maintained. SIGNIFICANCE: Taking a look of the enforcement news published, it is not hard to find repeated cases of the SFC imposing severe pecuniary penalties on licensed corporations acting as sponsors on their failure to discharge their obligatory and regulatory duties in due course as expected of the SFC. The reason is pretty obvious that IPO is a concern of the investing public at large, protection of investors and maintenance of integrity of the market are of top priority to the SFC. 8. SFC fined Changjiang Asset Management (HK) Limited $3.4 million for internal control failures On 13 July 2023, the SFC had reprimanded and fined Changjiang Asset Management (HK) Limited (CJAM) $3.4 million for regulatory breaches and internal control failings in relation to segregation of client money and provision of statements of accounts to clients. The SFC found that between May 2015 and August 2017, CJAM had: (1) under-segregated client money to the extent of $300 to $1.05 million on multiple occasions; (2) failed to segregate client money it had received in amounts ranging from $651,518 to $8.5 million within the prescribed time limit on three occasions; and; (3) failed to immediately notify the SFC after it became aware of its under-segregation of client money. Furthermore, it was also found that CJAM had breached the Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules and the Code of Conduct in issuing inaccurate statements of accounts as well as failing to provide statements of accounts to four clients. For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================= The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or call us at (852) 39550277 . Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk To unsubscribe, please simply reply with “ I don’t like to know more about Compliance ”.

The topics discussed in this monthly newsletter are as follows: ComplianceOne Newsletter – August 2022 ComplianceOne Newsletter – August 2022 The topics discussed in this monthly newsletter are as follows: 1. Regulators to enhance Stock Connect trading calendar 2. Hong Kong Securities and Futures Commission (SFC) sets out the way forward for green and sustainable finance 3. Creating and accumulating wealth with diversified fund structures—by Financial Services and the Treasury Bureau 4. SFC reprimands and fines TC Capital International Limited $3 million and suspends its responsible officer for sponsor failures 5. SFC commences MMT proceedings against hedge fund manager over alleged false trading 6. SFC issues restriction notice to a broker to freeze client account linked to suspected insider dealing 7. Retail investors convicted and fined for illegal short selling MARKET NEWS 1. Regulators to enhance Stock Connect trading calendar The SFC and the China Securities Regulatory Commission (CSRC) today jointly announced their in-principle approval for changes to the trading calendar for Stock Connect. The changes would apply to both northbound and southbound trading. Because different public holidays are observed in the Mainland and Hong Kong, investors currently cannot trade through Stock Connect on certain days. The proposed changes enable Stock Connect trading on any day when both the Mainland and Hong Kong markets are open, even when the corresponding settlement day falls on a public holiday Significance: As Mr. Ashley Alder, the SFC’s Chief Executive Officer had said: “ Stock Connect provides a unique opportunity for Mainland and Hong Kong investors to participate in each other’s market. The enhancements will allow investors to better manage their portfolios through Stock Connect and support the further expansion of the programme. ” 2. SFC sets out the way forward for green and sustainable finance The SFC published its “ Agenda for Green and Sustainable Finance ” to set out further steps to support Hong Kong’s role as a regional green finance center with key focus on: a) Enhancing corporate disclosures; b) Monitoring the implementation of and enhancing existing measures relating to environmental, social and governance (ESG) funds and expectations for fund managers; and c) Identifying an appropriate regulatory framework for any proposed carbon markets. As a speech of Mr. Ashley Alder, the SFC’s Chief Executive Officer, has made it explicit that: “ Climate change and sustainability are cross-border issues which require a coordinated response, and Hong Kong has a critical role to play as a regional and international green finance center. The SFC will continue to lead global regulatory development in this space to ensure that domestic policies and international standards are aligned. ” Significance The SFC as a robust regulatory body in HK plays a pro-active role in navigating and allocating more resources to attaining an intricated balance between global economic growth and the preservation of environment from climate risk given the existing scenario where the private sectors, if left to its own device, would not be so dedicated to implementing the measures in a sound and efficient manner than otherwise spearheaded by a regulatory body a like SFC. 3. Creating and accumulating wealth with diversified fund structures Last year, the assets managed by Hong Kong stood at HK$35.5 trillion (US$4.6 trillion), which was 12 times the size of our GDP. The HKSAR has been striving to develop Hong Kong as a premier international asset and wealth management center in the Asia-Pacific region; and among the measures taken is the introduction of new fund structures, which includes the set-up of open-ended fund company (OFC), is of prior significance. Ever since commencement of the OFC regime, 88 OFCs have been set up or re-domiciled to Hong Kong, and the number of registered OFCs recorded a more than four-fold year-on-year increase as at end July this year. To further enhance the attractiveness of the OFC regime, a three-year grant scheme was launched in May 2021, and subsidies have been provided to 52 OFCs set up in/re-domiciled to Hong Kong. Significance: The HKSAR plays a proactive role in developing the asset and wealth management regime, given the advantages enjoyed by OFC as follows: (1) Tax concession (2) Cost-savings (3) Easy management (4) Facilitate international distribution (5) Cater for public/private funds (6) Eligible Products under the Cross-boundary Wealth Management Connect Scheme in the Greater Bay Area and ETF Cross-listing Scheme Coupled with the introduction of the grant scheme, and the fact that OFCs are qualified products under the Cross-boundary Wealth Management Connect Scheme, it is expected that market practitioners would be delighted to show great interest among the industry in this new fund structure and anticipate further growth of the OFCs ENFORCEMENT NEWS 4. SFC reprimands and fines TC Capital International Limited $3 million The SFC has reprimanded and fined TC Capital International Limited (TC Capital) $3 million for failing to discharge its duties as the sponsor in the listing application of China Candy Holdings Limited (China Candy). It is found that TC Capital failed to: a) conduct reasonable due diligence on the third party payments made on behalf of two top customers of China Candy; and b) maintain proper records of the due diligence work allegedly done in relation to the listing application Although TC Capital was aware of the third party payments, their RO and transaction team members did not make any further queries and assess if such payment method was legitimate or not; and no follow-up due diligence was conducted. Apart from the lack of proper records in due diligence, there was also no audit trail showing that TC Capital had turned its mind to the issues at all. Significance: It demonstrates to the market practitioners again the crucial importance of due diligence on any third party payments which are signal of red flags that necessitate serious attention and follow-up remedial action from licensed corporation in the eyes of SFC. 5. SFC commences MMT proceedings against hedge fund manager over alleged false trading The SFC has commenced proceedings in the Market Misconduct Tribunal (MMT) against Mr. Jonathan Dominic Iu Wai Ching, a responsible officer of Tarascon Capital Management (Hong Kong) Limited (Tarascon), for allegedly engaging in false trading in the shares of two Hong Kong-listed companies. The SFC alleges that Iu executed matched trades between the brokerage accounts of the hedge fund and of his mother between August and September 2014, which had the effect of creating a false or misleading appearance of active trading or of the price for dealings in the listed shares concerned. 6. SFC issues restriction notice to a broker to freeze client account linked to suspected insider dealing The SFC has issued a restriction notice to Bright Smart Securities International (H.K.) Limited (Bright Smart), prohibiting it from disposing of or dealing with certain assets held in a client account that holds proceeds of suspected insider dealing. Significance: The SFC considers that the issue of the restriction notice, which prevents dissipation of proceeds of suspected insider dealing held in the account, is desirable in the interest of the investing public or in the public interest. 7. Retail investors convicted and fined for illegal short selling The Eastern Magistrates’ Court today convicted Ms. Chan Siu Tai and her sister Ms. Janice Chan after they pleaded guilty to illegal short selling in prosecutions brought by the SFC. The sisters were fined a sum of $114,000 and ordered to pay the SFC’s investigation costs. For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================== The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or call us at (852) 39550277 . Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk To unsubscribe, please simply reply with “ I don’t like to know more about Compliance ”.

The topics discussed in this monthly newsletter for insurance are as follows: ComplianceOne Insurance Newsletter – September 2025 The topics discussed in this monthly newsletter are as follows: REGULATORY UPDATES Latest 'Conduct In Focus' Edition Highlights Key Regulatory Insights and Industry Trends MARKET NEWS Captive Insurance Highlighted as Risk Tool at Belt and Road Summit Hong Kong Green Week Spotlights Insurance's Vital Role in Climate Resilience ENFORCEMENT NEWS IA Imposes 50-Month Ban on Insurance Intermediary for Misconduct ENFORCEMENT NEWS New TV Drama 'IA Files' Spotlights IA's Regulatory and Enforcement Role Regulatory News 1. Latest 'Conduct In Focus' Edition Highlights Key Regulatory Insights and Industry Trends On 30 September 2025, the IA has released the newest edition of Conduct In Focus , a valuable resource for insurance practitioners and policyholders alike. This publication delivers the latest complaints statistics alongside in-depth regulatory insights and observations on conduct-related matters, aimed at fostering a more transparent and ethical insurance landscape. Key Highlights: Additional Topics Explored The publication also addresses several emerging issues: Run-Off Portfolios Management: Regulatory considerations for insurance agencies specializing in managing run-off portfolios, highlighting opportunities and compliance requirements in this growing niche. Broker Disclosures for Offshore Products: The essential role of brokers in transparently disclosing risks and limitations when sourcing offshore insurance solutions for clients, to safeguard informed decision-making. Impact of MPF Telemarketing Cessation: Implications for cold-calling practices within the insurance sector following the recent halt of Mandatory Provident Fund (MPF)-related telemarketing, urging a review of sales strategies. SIGNIFICANCE: This edition of Conduct In Focus serves as a timely guide for navigating regulatory expectations and adopting best practices. Insurance professionals are encouraged to review the full publication for actionable insights that can strengthen their operations and client relationships. Market News 2. Captive Insurance Highlighted as Risk Tool at Belt and Road Summit On 10 September 2025, the IA took center stage today at the prestigious Belt and Road Summit , hosting a dedicated breakout session on the pivotal role of captive insurance in bolstering risk management for enterprises engaging in Belt and Road Initiative (“ BRI ”) projects. This session underscored Hong Kong's emerging status as a premier captive domicile, equipped to support participants in tackling the multifaceted challenges of international expansion. Key Highlights from the Session The discussion, moderated by Mr. Clement Lau, Executive Director of Policy and Legislation at the IA, emphasized the need for innovative risk strategies amid the BRI's vast scope. "The extensive scale of the Belt and Road Initiative entails a wide range of complex and diverse risks, requiring participants to adopt innovative and comprehensive risk management strategies where captives can be a valuable option," Mr. Lau remarked. He further highlighted Hong Kong's commitment: "By fostering a vibrant captive ecosystem in Hong Kong, we stand ready to support Belt and Road participants in venturing abroad and exploring new markets." Panelists included CEOs from two Hong Kong-domiciled captive insurers, one established by a Mainland enterprise and another by a multinational conglomerate. They shared how these captives have empowered their parent companies to effectively manage intricate risk landscapes and emerging threats. Experienced professional service providers also contributed, detailing the comprehensive support they provide for establishing and operating captives, from regulatory navigation to ongoing management. SIGNIFICANCE: The session delved into Hong Kong's unique advantages as a captive insurance center, including its strategic location, robust regulatory framework, and facilitative measures introduced by the IA. Attendees gained insights into the future trajectory of the Hong Kong captive market, positioning it as a leading global hub for BRI participants seeking tailored risk solutions. This event aligns with the broader goals of the Belt and Road Summit, highlighted how captive insurance offers enterprises a customized approach to risk transfer, cost efficiency, and enhanced control over insurance programs, essential for the high-stakes, cross-border nature of BRI projects. 3. Hong Kong Green Week Spotlights Insurance's Vital Role in Climate Resilience On 12 September 2025, the IA and the Hong Kong Federation of Insurers (“ HKFI ”) joined forces today to co-host a landmark event as part of the Hong Kong Green Week . Themed "Bridging Finance and Future: The Insurance Industry as a Pillar of Climate Resilience," this featured seminar brought together over 180 insurance practitioners and stakeholders both in-person and online to explore how the insurance sector can drive climate adaptation and sustainability. The event featured expert speakers from the insurance industry, government, academia, and the commercial sector, fostering discussions on navigating climate risks and identifying opportunities for innovation. Spotlight on the Climate Modelling Project A key highlight was an overview of the Climate Modelling Project, a collaborative effort led by the IA in partnership with the HKFI's Task Force on Green Insurance and the Hong Kong University of Science and Technology (“ HKUST ”). Representatives including Mr. Clement Lau, Executive Director of Policy and Legislation at the IA; Mr. Eric Hui, Chairman of the HKFI Task Force on Green Insurance; and Professor Alexis Lau from HKUST shared how this initiative leverages insurers' claims data to enhance underwriting capabilities, spur product innovation, and improve climate risk assessments aligned with sustainability objectives. This regulator-industry-academia collaboration aims to translate advanced research into practical tools for the sector, empowering insurers to better support Hong Kong's green transition. SIGNIFICANCE: As part of the broader Hong Kong Green Week initiative, this event underscores the city's commitment to sustainable development. Mr. Stephen Yiu, Chairman of the IA, stressed the urgency of multi-stakeholder engagement in addressing climate challenges. "Given the scale and complexity of climate-related risks, it is incumbent upon regulators and policymakers to engage proactively with the insurance industry, to strengthen our city’s climate resilience through robust risk assessment, improved risk management frameworks underpinned by a deeper understanding of the social value of insurance," he said. Enforcement News 4. IA Imposes 50-Month Ban on Insurance Intermediary for Misconduct On 25 September 2025, the IA has taken decisive action by banning Ms. SO Yuen Wa (Licence number: IG3140) (“ Mr. SO ”) from acting as an insurance intermediary for a period of 50 months. This enforcement measure underscores the IA's commitment to upholding ethical standards and safeguarding policyholders' interests in the industry. Details of the Case Ms. SO engaged in deceptive practices by providing misleading advice to two clients, falsely claiming that her appointing insurer would acquire their existing policies. This inducement led the clients to surrender three critical illness and long-term savings policies in favor of purchasing eight new ones through her. Key violations included: Failing to disclose that the transactions constituted de facto policy replacements. Impersonating one client to inquire about her policies. Pocketing the surrender value instead of applying it to the new policies. Although Ms. SO later repaid nearly all the funds involved, the harm to the clients was significant. They were left without the protection of their original policies and lost the chance to reinstate them, highlighting the irreversible consequences of such actions. SIGNIFICANCE: Policy replacement is a critical decision with profound effects on policyholders' financial security and coverage. The IA emphasizes that deceptive or unethical practices in this area will not be tolerated and will result in severe penalties. The public is strongly advised to exercise caution when considering surrendering existing policies. Insurance intermediaries are reminded to adhere strictly to ethical guidelines to avoid similar repercussions. Miscellaneous 5. New TV Drama 'IA Files' Spotlights IA's Regulatory and Enforcement Role On 23 September 2025 , the IA and Radio Television Hong Kong (“ RTHK ”) are set to launch "IA Files" (“保監有道” in Chinese), a compelling four-episode TV drama series premiering on RTHK TV31 on 27 September 2025. Drawing from real-life cases, the series aims to illuminate the IA's regulatory, investigative, and enforcement activities while delivering essential educational messages on insurance practices. Alan Wu, Acting Head of Conduct Supervision at the IA, elaborated on the content: "The stories in the drama series are based on real-life complaints and investigation cases, covering issues such as failure to explain key policy features to customers, inducement of policy replacements, unlicensed selling, and misappropriation of premiums. The IA places strong emphasis on the industry’s adherence to the principle of ‘treating customers fairly’, and it is vital for intermediaries to act in the best interests of their clients in their dealings." Broadcast Details IA Files will air on Saturdays at 7pm for four weeks starting from 27 September on RTHK TV31. The episodes will also be streamed simultaneously on the RTHK website and “RTHK TV” mobile app. The programme will later be available for viewing on the IA’s YouTube channel. Please see the series synopsis in the annex (Chinese only). 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證監會對期貨經紀行的新風險管理指引即將於2024年2月25日起生效，我們準備了以下快速指南以方便期貨經紀行能快速理解是次指引的重點及待辦事項。 適用於從事期貨合約交易持牌人的風險管理指引 (快速指南) [Feb 2024] A. 引言 1. 證券及期貨事務監察委員會（證監會）根據《證券及期貨條例》第 399 條於2023年8月25日發表了《適用於從事期貨合約交易的持牌人的風險管理指引》（下文簡稱“ 指引 ”）的諮詢總結，其旨在對適用於從事期貨合約交易的持牌人的現行監控規定作出補充。 2. 指引應與適用於期貨經紀行 [ 第 2 類受規管活動（期貨合約交易）持牌人] 的所有相關法律、法例、守則、規例或其他指引一併閱讀，並在不損害該等法律、法例、守則、規例或其他指引的原則下應用。 3. 指引於 2024年2月25日起生效 ，而 其後起計 12 個月的期間內為 過渡期的安排 。 過渡期的安排主是要給予期貨經紀行額外時間去完成相關系統的開發，例如： (a) 將客戶風險限額納入其風險管理系統、交易指示管理系統或交易平台之內，以識別或防止任何風險限額被突破；及 (b) 採用的假設的壓力情境應包括該行或其客戶交易的期貨合約出現極端但可能發生的價格變動或波幅變化的情境等。 如期貨經紀行未能於 2024年2月25日前 完成相關系統的開發便應採取其他臨時補償措施 (可參考以下列表的“參考 / 補償措施”一欄），這些措施可包括以人手方式監察風險限額的遵守情況，及使用審慎的簡化壓力情境來進行壓力測試以符合以上(a)或(b)所述的規定的風險管理目的等等。 我們準備了以下清單列表以方便期貨經紀行能快速理解是次指引的重點及待辦事項，建議期貨經紀行可根據以下清單去檢查是否已完成證監會最新的風險管理指引要求。我們以 藍色及底線標示的為是次證監會新指引中的重要項目及重點 ，需要特別關注。若期貨經紀尚未完成相關的待辦事項，便應從速處理並落實執行。 另外，由於指引較為繁複，且某些詞匯的定義亦必須參考回指引，我們亦建議客戶細閱指引原稿以作更深入的了解。 4. 我們準備了以下清單列表以方便期貨經紀行能快速理解是次指引的重點及待辦事項，建議期貨經紀行可根據以下清單去檢查是否已完成證監會最新的風險管理指引要求。我們以 藍色及底線標示的為是次證監會新指引中的重要項目及重點 ，需要特別關注。若期貨經紀尚未完成相關的待辦事項，便應從速處理並落實執行。 另外，由於指引較為繁複，且某些詞匯的定義亦必須參考回指引，我們亦建議客戶細閱指引原稿以作更深入的了解。 B. 定義 “指引” 指證監會於2023年8月發出的 《適用於從事期貨合約交易的持牌人的風險管理指引》。 “關連客戶組別” 根據 指引 中第20段註釋1的(a)至(f)的定義。 “聯屬客戶” 指與該期貨經紀行屬同一公司集團之內的任何公司。 “優惠保證金待遇” 指期貨經紀行與客戶之間就期貨合約作出的一種安排， 如客戶符合執行或結算有關期貨合約的交易所或結算所的規則所訂明的資格準則，則客戶無須遵守該等規則所訂明的預繳抵押品規定。 “資金流動性風險” 指期貨經紀行在某期貨合約到期時未能履行其在該合約下的財務責任的風險。 “保證金短欠＂ 指當客戶帳戶的權益淨額結餘低於期貨經紀行就有關帳戶內的未平倉持倉而設定的保證金規定時，便產生“保證金短欠＂。 “權益淨額結餘” 指在該帳戶內持有的抵押品、在該帳戶內的未平倉持倉的浮動利潤及記入該帳戶內的收入的總和，減去在該帳戶內的未平倉持倉的浮動虧損及從該帳戶扣除的費用、佣金、徵費及其他收費。 “貫徹符合保證金規定” 指有關客戶在下列期間: (a) （如有關帳戶開立達一年或以上）最近至少一年的期間內; 或 (b) （如有關帳戶開立少於一年）自帳戶開立日期起計，並至少三個月的期間內; 並無不符合保證金規定、被強制平倉或遭退回支票的紀錄。 “客戶保證金短欠數額” 指客戶分類帳內該帳戶的期貨合約買賣所須的保證金金額中，超出該帳戶內權益淨額結餘的數額。 “速動資金盈餘” 指根據《財政資源規則》，其速動資金減去規定速動資金後的數額。 “客戶分類帳” 指就“期交所交易”及“非期交所交易＂設有獨立分類帳的規定 “可用資金” 指由該行實益擁有的沒有產權負擔現金與其分配作期貨合約交易用途的未提取銀行信貸額的總和。 “ 量化基準 ” 設定為該行的速動資金盈餘與可用資金中較高者的 50% “超蝕款項” 指一個客戶帳戶的交易虧損超逾該帳戶的權益淨額結餘的任何金額。 “預計超蝕款項” 就某客戶帳戶而言，指任何預計虧損超逾該帳戶的權益淨額結餘的金額。 C. 清單列表 類別 指引下期貨經紀行應具備的政策/ 待辦事項清單 Checkbox 備註 參考 / 補償措施 1. 自營買賣及客戶買賣期貨合約所產生的風險管理 (1) 應建立有效的風險管治框架，以管理其本身及其客戶所承擔的風險，應將風險管理責任授予具備經驗及專業知識且擁有足夠權限以 實施政策及程序 的高級管理層。 ☐ 應確保其風險胃納及風險限額與其策略目標相符並與其財政及管理能力相稱。 (2) 就(1)的政策及程序實施持續風險監察、監控和匯報。 ☐ 須要制定風險限額及偏離 (deviation policy)的政策和匯報程序。 (3) 就(1)的政策及程序進行壓力測試及實施應變計劃。 ☐ 須要考慮如何建立/設計切實並可行的壓力測試場境及相關條件。 2. 市場價格水平或波幅出現不利變動而招致損失的風險（ 只適用於有參與自營買賣的期貨經紀行 ） (1) 確保期貨合約的自營買賣持倉均應以實時方式按市值計算。 ☐ 自營買賣持倉的日終重新估值應以獨立於前線部門的來源取得或經獨立核實的資料來源。 (2) 應定期將估計的自營買賣持倉的 實際及假設回報進行比較 。 ☐ 當發現估值誤差時須要進行調查及檢討 。 (3) 釐定與其財政及管理能力相稱且審慎的市場風險限額。 ☐ 採用的市場風險限額必須獲得其高級管理層及董事會妥為批准，出現違反限額的情況時應予及時上報。 3. 商品期貨買賣風險 (1) 備存獲得其高級管理層批准的一份＂ 其可 交易的商品期貨清單 ＂。 ☐ 當交易的商品期貨須要以實物交收時，須先制定／計劃清楚所附帶的運送，存倉及交付安排。 4. 客戶信貸風險 (1) 以單一客戶而言 ，為每名客戶制定審慎的交易限額及持倉限額； (2) 以每個關連客戶組別而言 ，從整體角度顧及該組別內所有客戶而設的合計基準風險限額，期貨經紀行可參考指引中第21段(c)的風險項目。 ☐ 言 ，為每名客戶制定審慎的交易限額及持交易限額及持 ☐ 設定(1)、(2)條件的目的在於防止任何違反適用的法定或監管持倉限額（如結算代理人或交易所的持倉限額）。 (3) 需設有識別關連客戶組別的措施，及評估相關組別的財務及信貸資料， 特別是如何識別相關帳戶的實益擁有人。 ☐ 為確定兩名或以上屬自然人（配偶除外）的客戶是否屬某個關連客戶組別， 期貨經紀行無須主動查核該等客戶的帳戶的實益擁有人 ，但當有跡象顯示某客戶並非為其本身行事時，便應作出適當查詢。 (1) 以聯屬客戶而言 ，須要考慮的風險項目與(1)、(2)類別大致相同，詳情可參考指引中的第22段(c) 。 ☐ 定期檢視該聯屬客戶及時向該期貨經紀行履行交收責任的能力，包括其交易模式，風險胃納給管理政策，財務狀況及分配作期貨合約交易用途的資金資源等。 5. 收取客戶基本保證金 (1) 除非客戶已提供充足的抵押品以符合其保證金規定，否則不應為該客戶買賣期貨合約。 (2) 對客戶施加保證金規定（可能包括開倉保證金規定及維持保證金規定） 不得低於其對手方所設定的金額 ， 不應向任何客戶授出任何信貸融通 或貸款或作出任何其他安排，以便任何客戶得以符合保證金規定。(例如，期貨經紀行不應向其聯繫公司提供財政支持，以便後者向該行的客戶授出信貸融通的安排。) ☐ 已提供充足的抵押品以符合其保證金規定，否則不應為該客戶買賣期則不應為該客 ☐ 施加保證金規定（可能包括開倉保證金規定及維持保證金規定） 不得低於其對手方所設定的金額 ， 不應向任何客戶授出任何信貸融通 或貸款或作出任何其他安排，以便任何客戶得以符合保證金規定。(例如，期貨經紀行不應向其聯繫公司提供財政支持，以便後者向該行的客戶授出信貸融通的安排。) i. 享有優惠保證金的客戶除外； ii. 期貨經紀行經考慮客戶及其自身的情況後，可向客戶施加較其對手方 (或交易所) 所設定的金額為高的保證金規定。 (3) 制定特殊保證金安排 ，以紓減因市場波動及公眾假期情況而可能引致的客戶信貸及資金流動性風險。 ☐ 可不時按市場情況暫時調高保證金規定或在公眾假期前席收取額外保證金。 6. 客戶出現保證金短欠 (1) 就以香港為基地的客戶而言，在發出追繳保證金通知起計 一個營業日內 向客戶收取任何到期應付的保證金數額； (2) 向每名客戶發出的追繳保證金通知備存詳細的紀錄，當中包括每項追繳保證金通知涉及的金額及發出的時間； (3) 嚴格執行其保證金和強制平倉的政策及程序。 ☐ 客戶而言，在發出追繳保證金通知起計 一個營業日內 向客戶收取任何到期應付的保到期應付的保到期應付的 ☐ 追繳保證金通知備存詳細的紀錄，當中包括每項追繳保證金通知涉及的金額及發出的金額及發出的金額及發 ☐ i. 須保存記錄關於客戶的回應和清繳詳情，以及就未清繳追繳保證金所採取的任何跟進行動。 ii. 評估在上一次向其客戶發出追繳保證金通知和下一次發出追繳保證金通知 之間的期間內的風險承擔 。 根據證監會諮詢總結第13段， 期貨經紀行要求在授出寬免方面享有較大的靈活性，證監會已修改了《指引》， 將焦點集中於所授出的寬免是否適當之上。 (4) 高級管理層須具有適當的充分理由，包括批准人 合理地信納有關偏離或寬免不會影響期貨經紀行的財務穩健性( 例如，在《財政資源規則》下的速動資金規定)，否則不應授予批准。 ☐ 當出現以下情況須取得高級管理層的批核 -偏離該政策的情況； -對追繳保證金或強制平倉的寬免。 具體而言，對於偏離或寬免期貨經紀行的保證金及強制平倉政策的情況，除非高級管理層具有適當的充分理由， 否則不應授予批准。 7. 給予優惠保證金待遇予客戶 (1) 如符合下列要求，期貨經紀行可就某客戶在期貨市場進行的買賣給予優惠保證金待遇 ： i. 該客戶有 貫徹符合保證金規定的紀錄 ，並維持著穩健的財務狀況，以及符合相關交易所或結算所的規則下就優惠保證金待遇所訂明的資格準則； ii. 期貨經紀行嚴格遵守該交易所或結算所規則中的所有要求； iii. 期貨經紀行具備充足的流動資金及財政能力， 以符合其對手方就所有獲得優惠保證金待遇的客戶的期貨合約買賣所施加的保證金規定。 備註: “ 貫徹符合保證金規定 ”指有關客戶在最近至少一年的期間內；或自帳戶開立日期起計， 並至少三個月的期間內，並無不符合保證金規定、被強制平倉或遭退回支票的紀錄。 (1) 如符合下列要求，期貨經紀行可就某客戶在期貨市場進行的買賣給予優惠保證金待遇惠保證金 ☐ 如符合下列要求，期貨經紀行可就某客戶在期貨市場進行的買賣給予優惠保證金待遇惠保證金 如符合 下列要求，期貨經紀行可就貨經紀行可紀行可就貨經紀 ☐ 當市況出現大波動， 享有優惠保證金優惠的 優惠的客戶出 ☐ 當市況出現大波動， 享有優惠保證金優惠的客戶出現追加保證金時的處理方案。 (2) 以個別客戶而言， 為每名獲得優惠保證金待遇的客戶訂立一個審慎的交易限額 。期貨經紀行應充分考慮其財政能力及該客戶的具體情況， 並避免訂立過高的交易限額 。 ☐ 定期檢視獲得優惠保證金待遇的客戶的財務狀況、清繳紀錄、投資目標、風險胃納和交易模式或策略; 以釐定相稱的交易限額。 (3) 當 客戶分類帳 內出現“客戶保證金短欠數額”須要計算時， 可參照以下其中一項： i. 存放於其對手方的保證金總額；或 ii. 客戶須存放於該經紀行的保證金總額。 ☐ 如期貨市場的某個交易時段的 交易時間跨越該交易日的午夜 ，期貨經紀行便無須將在該交易時段內的期貨合約買賣計算在內。 (4) 期貨經紀行應計算截至每個交易日結束時所有獲得優惠保證金待遇的客戶的分類帳內的客戶保證金短欠數額的總額，及將該總額與量化基準 （ 設定為該行的速動資金盈餘與可用資金中較高者的50%）進行比較。當發現超出量化基準時， 應確保不會出現過度風險承擔及採取及時及適當的行動，並在下一個交易日及時向證監會作出匯報。 ☐ 期貨經紀行應具備充足的速動資金盈餘與可用資金，並衡量其可承受的風險，及其對財政能力的影響。可使用 i. 其最近期的速動資金盈餘或可用資金的金額；或 ii. 其在向證監會提交的最近期的財務申報表中所匯報的速動資金盈餘或可用資金的金額，以進行(4)的比較。 跟據證監會諮詢總結第15段， 證監會不會強制規定超逾該限額的期貨經紀行須在下一個交易日糾正有關情況，但它們仍須及時向證監會作出匯報。 8. 資金流動性風險 (1) 應實施相應措施審慎管理現金流，及確保其持有的客戶款項或抵押品具備充足的流動性，以代表客戶為期貨合約買賣符合其對手方的保證金規定。 ☐ 具備可行的壓力測試環境； 在某些情況下，期貨經紀行或許未能在限期前履行其對手方就有關期貨合約發出的追繳保證金通知，原因可能是相關客戶沒有及時履行該行的追繳保證金通知 (例如本地農歷新年假期間)，以及該行並無充足資金代該客戶清繳該追繳保證金。 (2) 應定期評估其在承受影響全個市場的壓力或影響特殊情況的壓力時的流動資金需要，及 制定適當的緊急融資方案 。 ☐ (3) 在緊急情況下如何可獲取足夠的新資金，應 避免依賴單一資金來源 。 ☐ 9. 委聘執行或結算代理人為客戶執行或結算期貨合約 (1) 制定書面政策及程序，以確保該行及其客戶對該代理人的風險承擔獲得妥善管理； ☐ 有關建議沒有規定期貨經紀行必須與後備代理人訂立正式協議或開立帳戶， 與該候選代理人就後備安排確立和維持相互諒解便已足夠。 就客戶保證金溢差(client margin excess)的建議限額及分隔規定(segragation requirements)所識別出的實際問題 (2) 在該代理人並非持牌法團、註冊機構、認可交易所的交易所參與者或認可結算所的結算所參與者的情況下，須定期對該代理人進行盡職審查覆核並評估該代理人的能力； ☐ 期貨經紀行可以設下一個特定時段（例如一個月以25個交易天為樣本），估算主要活躍客戶在這個時段內的平均交易量和平均持倉量的保證金要求，並以此作為參考標記。 (3) 實施適當的安排和後備措施，物色至少一名後備執行或結算代理人的候選人 ，並盡可能就後備安排與該候選人確立和維持相互諒解或正式協議。 ☐ 並根據此參考標記的成交量和持倉量的波動情況，設定上下120%-80%的緩衝區。 當存放於結算代理人的客戶保證金超出參考標記的120%時，期貨經紀行向結算代理人執行提取超額的保證金。如果保證金低於 80%時，則可向結算代理人存入額外保證金以維持至 100% 的平均水平（參考標記），以方便客戶隨時建立任何新倉的保證金要求。 10. 因委聘執行或結算代理人而產生保障客戶資產風險 (1) 應確保在其於對手方開立的帳戶內，客戶的期貨合約持倉及該等持倉的相關保證金是與期貨經紀行自營買賣持倉及該等持倉的相關 保證金分開記帳的; ☐ 自營資金與客戶資金必須完全分隔。 (2) 不應使用屬於某客戶的資產為另一客戶的交易提供保證或進行交收; ☐ 某客戶帳戶的資產 不能被用於抵銷 或清繳另一客戶帳戶的“超蝕款”。 (3) 當期貨經紀行在於某對手方（代理人）開立的綜合帳戶內持有客戶持倉及資產，便應採取合理步驟， 防止屬於某客戶帳戶的資產被用於抵銷或清繳另一客戶帳戶的“超蝕款項” 。 ☐ (4) 若出現以上(3)的情況，應盡快將其收到用來清繳出現超蝕款項的客戶帳戶的追繳保證金的任何資產， 以及一筆數額相等於上述追繳保證金尚未獲清繳的金額的自身現金 ，存入該綜合帳戶或指定的信託銀行帳戶或獨立帳戶內， 以彌補因該抵銷而令其他客戶帳戶的資產出現的短欠。 ☐ 使用自身資金時， 須要計算速動資金盈餘或可用資金的金額。 11. 進行壓力測試環境下所產生的潛在虧損風險 (1) 制定妥善的壓力測試政策及程序，清楚地列明壓力測試的方法和頻密程度，以及檢討和匯報機制。這些政策及程序應獲高級管理層批准。 (2) 自行進行壓力測試應至少每周及在市況波動時進行壓力測試 。 特別安排： (3) 若客戶屬i. 持牌法團，ii. 註冊機構；或iii. 在香港以外地方的期貨交易商，其帳戶內的持倉是由該金融機構代其客戶持有的， 可將該帳戶內的任何持倉排除在根據本“指引”進行的壓力測試的範圍之外。 ☐ 的壓力測試政策及程序，清楚地列明壓力測試的方法和頻密程度，以及檢討和匯報機制。這些政策及程序應獲高級管理層批 准。 獲高級管理層批 ☐ 行壓力測試應至少每周及在市況波動時進行壓力測試 。 波動時進行壓力動時進行壓力 ☐ i. 應採用與其自營或其客戶買賣的產品的風險特性相稱的適當壓力測試方法。 ii. 預計 每個客戶帳戶 在 該壓力測試假設的壓力情境（假設的壓力情境）下可能產生的虧損金額（預計虧損）， 並估計 客戶帳戶的大額 預計超蝕款項 對期貨經紀行的速動資金盈餘及可用資金造成的影響。 iii. 預計期貨經紀行的 自營買賣持倉 在該假設的壓力情境下可能引致的交易虧損及追繳保證金金額， 並估計該等預計交易虧損及追繳保證金的總額 對其速動資金盈餘及可用資金造成的影響。 當擬備本“指引”時， 壓力測試中採用的假設的壓力情境在期交所買賣的指數期權的相關價格變動 被假設為±20%。 (4) 在其 壓力測試中採用的假設的壓力情境 應包括該行或其客戶交易的期貨合約 出現極端但可能發生的價格變動或波幅變化(期權合約的持倉)的情境， 並應參考或基於下列因素來釐定有關情境： i. 過去的期貨市場受壓事件；及 ii. 其對潛在且令期貨合約的價格或波幅產生重大影響的風險所作出的評估。 (4) 在其 壓力測試中採用的假設的壓力情境 應包括該行或其客戶交易的期貨合約 出現極端但可能發生的價格變動或波幅變化(期權合約的持倉)的情境， 並應參考或基於下列因素來釐定下列因素來 ☐ 去的期貨市場受貨市壓事件；及 ☐ 若期貨經紀行為某交易所或結算所的會員或參與者 ， 便應確保為在該交易所或結算所買賣或結算的期貨合約持倉進行的壓力測試所採用的 假設的壓力情境， 至少與該交易所或結算所為其會員或參與者指明或建議的假設的壓力情境同等嚴謹。 期貨經紀行在預計虧損應出現極端但可能發生的價格變動或波幅變化的假設來進行估算，或以 “替代方案”假設為相等於期貨經紀行的對手方所設定的保證金規定的 200%。 (5) 在 集團層面集中進行的壓力測試 : i. 已考慮到該期貨經紀行的風險承擔及財務狀況，並適當地預計壓力情境對該行的速動資金盈餘及可用資金造成的影響； ii. 採用的方式與自行進行壓力測試所載列的規定大致上一致或在嚴謹程度上高於該等規定； iii. 在證監會提出要求時，向該會提交有關其集團層面壓力測試的報告。 (5) 在 集團層面集中 (5) 在 ☐ 考慮到該期貨經紀行的風險承擔及財務狀況，並適當地預計壓力情境對該行的速動資金盈餘及可用資金 ☐ 用的方式與自行進行壓力測試所載列的規定大致上一致或在嚴謹程度上高一致或在嚴謹程 ☐ (6) 及時和勤勉盡責地評估壓力測試結果，以識別任何對其財政穩健性構成的潛在威脅 ，以及採取及時的跟進行動。進行評估的最低要求： a. 將客戶帳戶的預計虧損總額及自營帳戶的預計交易虧損總額 與過往的壓力測試結果進行比較 ， 並識別： i. 預計超蝕款項超逾該行的速動資金盈餘或可用資金的30% 的任何客戶或關連客戶組別； ii. 該行認為 使其承擔過高風險 的任何其他客戶或關連客戶組別； b. 評估該行的速動資金盈餘或可用資金是否足以承受帳戶內有著最大金額的預計超蝕款項的兩個客戶或關連客戶組別的預計超蝕款項造成的綜合影響。 特別安排： 根據以上(6)的條件， 具有貫徹符合保證金規定的紀錄或維持著相對其投資組合及交易規模而言屬穩健的財務狀況的客戶或關連客戶組別 可被排除在外。 (6) 及時和勤勉盡責地評估壓力測試結果，以識別任何對其財政穩健性構成的潛在威脅 ，以及採取及 以及採取及 及 以及採取及 及 以及採 ☐ 戶帳戶的預計虧損總額及自營帳戶的預計交易虧損總額 與過往的壓力測試結果進行比較 ， 並識結果進行比 ☐ 計超蝕款項超逾該行的速動資金盈餘或可用資金的30% 的任何客戶或關任何客戶或關 ☐ 行認為使其承擔過高風險的任何其他客戶或關其他客戶或關 ☐ (7) 當在壓力測試下可能出現威脅時的應變措施: i. 採取及時和有效的跟進行動，例如調整其風險管理措施； ii. 擬備詳細的應變計劃，以免在市場受壓的情況下出現交收失敗、無力償債；或 iii. 避免違反《財政資源規則》下的最低速動資金規定的情況 。 (7) 當在壓力測試下可能出現威脅時的出現威脅時的 ☐ 取及時和有效的跟進行動，例如調整其風險管理措 ☐ 備詳細的應變計劃，以免在市場受壓的情況下出現交收壓的情況下出現交收 ☐ 免違反《財政資源規則》下的最低速動資金規定的情況 。 應確保應變計劃採用的假設能切合付諸實行。 (8) 壓力測試的文檔記錄包括： i. 所進行的每個壓力測試的詳情，包括該壓力測試所採用的方法、數據來源、數據紀錄、假設和假設的壓力情境； ii. 每個壓力測試的結果，包括但不限於每個客戶帳戶的預計虧損金額及預計超蝕款項，及其每個自營帳戶的預計交易虧損； iii. 就壓力測試結果進行的評估的結果；及 iv. 就評估結果採取的任何跟進行動。 (8) 壓力測試的文 (8) 壓力測試的文 ☐ 進行的每個壓力測試的詳情，包括該壓力測試所採用的方法、數據來源、數據紀錄、假設和假據紀錄、假設和假 ☐ 個壓力測試的結果，包括但不限於每個客戶帳戶的預計虧損金額及預計超蝕款項，及其每個自營帳戶的計交易易 ☐ 壓力測試結果壓力測試結果壓力測 ☐ 評估結果採取的任何跟進行動。 12. 風險披露及聲明 期貨經紀行應在客戶協議內披露以下重要事項： (1) 期貨經紀行 就其代理人之綜合帳戶內持有的客戶資產 而向有關客戶負上法律責任的範圍，及客戶在綜合帳戶內的資產的權利； (2) 客戶享有其對持有在期貨經紀行於 某結算所開立的綜合帳戶 內的資產的權利； (3) 為客戶提供在香港以外地方的期貨市場買賣或結算服務時， 其海外對手方及該期貨市場不受證監會所規管及可能受到有別於《證券及期貨條例》及據此訂立的規則和規例的法律及規例所規管，而因此 客戶在海外進行交易所存放款項可能無法享有在香港期貨市場進行交易所獲賦予的相同保障。 期貨經紀行應在客戶協議內披露以下重要披露以下重要 ☐ 貨經紀行 就其代理人之綜合帳戶內持有的客戶資產 而向有關客戶負上法律責任的範圍，及客戶在戶負上法律責任的範圍 ☐ 戶享有其對持有在期貨經紀行於 某結算所開立的綜合帳戶 內的資產的權 ☐ 客戶提供在香港以外地方的期貨市場買賣或結算服務時， 其海外對手方及該期貨市場不受證監會所規管及可能受到有別於《證券及期貨條例》及據此訂立的規則和規例的法律及規例所規管，而因此 客戶在海外進行交易所存放款項可能無法享有在香港期貨市場進行交易所獲賦予的相同保障。 13. 通知規定 (1) 當察覺到任何以下事宜起的 一個營業日內給予證監會書面通知 ： i. 每個交易日結束時所有獲得 優惠保證金待遇 的客戶的分類帳內的 客戶保證金短欠 數額的總額， 超逾量化基準 （設定為該行的速動資金盈餘與可用資金中較高者的50%）; ii. 在期貨經紀行及時和勤勉盡責地評估壓力測試結果時，所識別“超逾該行的速動資金盈餘或可用資金的30%”的任何客戶或關連客戶組別可能無法清繳其預計超蝕款項； iii. 該行的速動資金盈餘或可用資金將不足以承受最大金額的預計超蝕款項的兩個客戶或關連客戶組別的預計超蝕款項，及該行自營帳戶的預計交易虧損； iv. 該行無法或將無法履行任何對手方發出的任何追繳保證金通知。 (1) 當察覺到任何以下事宜起的 一個營業日內給予證監會書日內給予證監 ☐ 個交易日結束時所有獲得 優惠保證金待遇 的客戶的分類帳內的 客戶保證金短欠 數額的總額， 超逾量化基準 （設定為該行的速動資金盈餘與可用資金中較高可用資金中較高 ☐ 期貨經紀行及時和勤勉盡責地評估壓力測試結果時，所識別“超逾該行的速動資金盈餘或可用資金的30%”的任何客戶或關連客戶組別可可用資金中較高可用資金中較高 ☐ 行的速動資金盈餘或可用資金將不足以承受最大金額的預計超蝕款項的兩個客戶或關連客戶組別的預計超蝕款項，及該行自營帳戶的預計可用資金中較高 ☐ 行無法或將無法履行任何對手方發出的任何追繳保證金通知。 (2) 當出現以上(1)的情況向證監會提交通知時， 須要列明有關事宜的全部詳情， 包括: i. 超逾基準的原因及就享有優惠保證金待遇的客戶持倉而承擔的風險； ii. 根據以上(1)情況的相關壓力測試結果，及該等客戶或關連客戶組別在出現該等預計超蝕款項時是否有能力清繳該等虧損進行的相關評估結果；及 iii. 已採取、正採取或將採取的任何風險紓減措施，以減低就享有優惠保證金待遇的客戶持倉而承擔的任何過高風險； iv. 已採取、正採取或將採取的任何跟進行動，以防止出現交收失敗或違反《財政資源規則》下最低速動資金規定的情況； v. 無法或將無法履行任何對手方發出的任何追繳保證金通知的理由， 以及其為糾正或防止有關無法履行有關追繳保證金通知的情況而已採取、正採取或將採取的任何措施。 (2) 當出現以上(1)的情況向證監會提交通知時， 須要列明有關事宜的全部詳 可用資金中較高 ☐ 逾基準的原因及就享有優惠保證金可用資金中較高可用資金中較高 ☐ 據以上(1)情況的相關壓力測試結果，及該等客戶或關連客戶組別在出現該等預計超蝕款項時是否有能力清繳該等虧損進行的相關評估結損進行的相關 ☐ 採取、正採取或將採取的任何風險紓減措施，以減低就享有優惠保證金待遇的客戶持倉而承擔的可用資金中較高 ☐ 中較高可用資金中較高可用資金中較高可用資金中較高可用資金中較高可用資金中較高可用資金中較高用資金中較 ☐ 法或將無法履行任何對手方發出的任何追繳保證金通知的理由， 以及其為糾正或防止有關無法履行有關追繳保證金通知的情況而已採取、正採取或將採取的任何措施。

The topics discussed in this monthly newsletter are as follows: ComplianceOne Newsletter – May 2025 The topics discussed in this monthly newsletter are as follows: REGULATORY UPDATES Updates to intermediaries of new acceptable account opening approaches MARKET NEWS SFC-HKEX launch Technology Enterprises Channel for Technology and Biotech Companies HK Government welcomes passage of the Stablecoins Bill The Mainland-Hong Kong Swap Connect to include enriched Product Types to foster internationalization of RMB Renewed Mutual Recognition of Funds between Ireland and Hong Kong ENFORCEMENT NEWS SFC Fines Sino-Rich $2 Million and Suspends its Responsible Officer for Margin Lending Failures SFC Issues Restriction Notice to Bloomyears Limited SFC Revokes Mui Chok Wah’s Licence following Theft Conviction and Regulatory Breach of Non-disclosure The Responsible Officer of Lion Futures Limited is Banned for breach of AML/CFT Regulations SFC Prosecutes a Finfluencer for Providing Securities Advice Publicly without a License Court Convicts Brothers-in-Law of False Trading Conspiracy in Pa Shun Shares SFC Disqualifies National Agricultural Executives for Multiple Financial Misconduct Regulatory Updates 1. Updates to intermediaries of new acceptable account opening approaches On 30th May 2025, the SFC issued an update on acceptable account opening approaches allowing intermediaries to streamline the client onboarding process for overseas investors while ensuring compliance and enhancing security. These updates permit intermediaries flexibility in acceptable remote client account opening procedures. The table below lists out the updates on acceptable non-face-to-face (NFTF) account opening approaches. For more details, please refer to the SFC circular. The updates on acceptable non-face-to-face (“NFTF”) account opening approaches are summarized as below: (1) Certification services (i) Certification services recognised by the Electronic Transactions Ordinance (Cap. 553) can be employed for client identity verification in NFTF account opening where the list of recognized certificates are made available on the website of the Digital Policy Office (“ DPO ”)[1] of the Hong Kong SAR Government. (ii) Smartphones equipped with Near Field Communication (“ NFC ”) technology can be used for accessing the certification services provided by recognised Certification Authorities (“ CA ”) remote account opening. (iii) Personal (Remote) ID-Cert Class 12 (a kind of Recognised Certificate), issued by Digi-Sign Certification Services Limited , can be subscribed by overseas investors holding ePassports for remote clients onboarding. The certificates must be in compliance with the standards of Internationals Civil Aviation Organization (“ ICAO ”). (iv) Currently, more than 100 overseas jurisdictions have issued ICAO-compliant ePassports which are eligible for remote client onboarding. ————————————————— [1] The DPO was set up in July 2024 by merging the Office of the Government Chief Information Officer and the Efficiency Office. Representing a consortium of know-how of the two offices specialized in information technology (IT) and business processes re-engineering, the DPO is responsible for formulating policies on digital government, data governance and information technology. The establishment of the DPO is an important step in enhancing governance and driving the development of digital government by bolstering the Government’s capabilities in addressing long-term and strategic issues. (2) iAM Smart (i) iAM Smart is a newly included acceptable NFTF account opening approach by the SFC; (ii) It is a one-stop personalised digital services platform, which provides a reliable and independent source of Hong Kong residents’ identities, which can be used for client identity verification; (iii) iAM Smart has also been specified as a recognised digital identification system for client identity verification under paragraph 4.2.1 of the AML/CFT Guideline (June 2023); (iv) To facilitate the adoption of iAM Smart by financial institutions, an iAM Smart Sandbox Program (“ Programme ”) has been launched by the DPO in collaboration with the Cyberport, licensed intermediaries are encouraged to join the Program for access to various documentation and resources via the SFC by visiting the “ invitation letter ” for details. (v) Illustrative processes of the connection to and the adoption of iAM Smart for account opening are set out in Appendix B of the SFC circular for further reference. The SFC has published a list of eligible jurisdictions that clients may maintain bank accounts with for first payments and ongoing fund movements for the purpose of remote onboarding of overseas individual clients, currently, 15 additional eligible jurisdictions are added. SIGNIFICANCE: As NFTF account opening approaches become more prevalent, financial intermediaries should keep themselves abreast of the latest technologies available in order to widen their access to onboarding overseas clients amid the intense competition in the local market. Whereas intermediaries should be reminded that some jurisdictions may have restrictions on citizens’ investments or capital transfers beyond their territorial boundaries, thus intermediaries are advised to seek reference to the requirements of that domestic regulatory authorities when onboarding overseas clients. Market News 2. SFC-HKEX launch Technology Enterprises Channel for Technology and Biotech Companies The SFC and the Hong Kong Exchanges and Clearing Limited (the “ HKEX ”) jointly announced the launch of a dedicated technology enterprises channel (“ TECH ”) to further facilitate New IPO Listing applications from prospective Specialist Technology Companies (“ STC ”) and Biotech Companies (“ BTC ”), and introduced new confidential filing option. There are views that the establishment of TECH is a key measure for Hong Kong to consolidate its position as a global hub for capital of technology and innovation, effectively highlighting the advantages of listing in Hong Kong. TECH supports prospective STCs and BTCs in understanding applicable Listing Rules and preparing for their listing in Hong Kong before submitting formal New Listing applications, the following facilitating measures are: (i) a specialized team with relevant experience has been designated in reviewing and providing guidance on the Main Board Chapter 18A, 18C applications; (ii) engagement with the prospective STC or BTC in order to gain a deeper knowledge of their specific business; (iii) provision of guidance on the eligibility and suitability for listing on the products and services to be offered; (iv) opportunities for the STC or BTC to discuss and seek guidance from the SEHK on Listing Rules; (v a confidential filing option is made available for listing applications filed under the Main Board Chapter 18A, 18C in the wake of this announcement. SIGNIFICANCE: The TECH channel is strategically vital for Hong Kong's financial hub status. By providing pre-application guidance and confidential submissions tailored specifically for high-potential, high-risk specialist tech and biotech firms, TECH directly addresses a critical market gap. This significantly enhances Hong Kong's attractiveness and competitiveness against global rivals in capturing innovative, fast-growth companies seeking capital. 3. HK Government welcomes passage of the Stablecoins Bill The Hong Kong Government announced the passage of the Stablecoin Bill (the “Bill” ) by the Legislative Council on 21 May 2025 to establish a licensing regime for the fiat-referenced stablecoin (“ FRS ”) issuers in Hong Kong. Important takeaways with the Stablecoins Ordinance It is required to obtain a license from the Hong Kong Monetary Authority if any person who, in the course of business, issues an FRS in Hong Kong, or issues an FRS that purports to maintain a stable value with reference to Hong Kong dollars in or outside Hong Kong. Some key points to note (a) The relevant person must satisfy reserves asset management and redemption requirements which include: (i) a proper segregation of client assets; (ii) maintenance of a robust stabilisation mechanism, and; (iii) the processing of stablecoin holders’ requests for redemption at par value with reasonable conditions. (b) The relevant person must comply with other requirements which include: (i) anti-money laundering and counter-terrorist financing; (ii) risk management; (iii) disclosure and auditing; and (iv) fitness and propriety. (c) The regulatory regime will also provide better protection for the general public and investors, including: (i) only specified licensed institutions may offer an FRS in Hong Kong; (ii) only an FRS issued by a licensed issuer may be offered to a retail investor; (iii) only advertisements of licensed FRS issuance are allowed in order to avoid any fraud and scams. SIGNIFICANCE: As the Secretary for Financial Services and the Treasury, Mr Christopher Hui, had said, “ The Ordinance adheres to the ‘ same activity, same risks, same regulation ’ principle, with a focus on a risk-based approach to promote a robust regulatory environment. This is not only in line with international regulatory requirements, but also lays a solid foundation for Hong Kong’s virtual asset market …” It is also of crucial importance to know how the Bill defines the meaning of stablecoin : A " stablecoin " is a cryptographically secured digital representation of value that – (a) is expressed as a unit of account or store of economic value; (b) is used, or intended to be used, as a medium of exchange accepted by the public for any one or more of the following purposes:- (i) payment for goods or services; (ii) discharge of a debt; (iii) investment; (c) can be transferred, stored or traded electronically; (d) is operated on a distributed ledger or similar information repository; and purports to maintain a stable value with reference to:- (i) a single asset; or (ii) a pool or basket of assets". According to the above meaning, it is worth to note that stablecoins can be used as a medium of exchange for payment of goods or services owing to its stable value with reference to certain assets like fiat money and be exchanged for in equivalent value ; whereas other cryptocurrencies are only convertible to fiat money subject to prevailing market values. Most important is that the issuers of stablecoins are required to obtain a license from HKMA. 4. The Mainland-Hong Kong Swap Connect to include enriched Product Types to foster internationalization of RMB To further promote the collaborative development of financial derivatives markets on Mainland and Hong Kong, and to support a high-quality opening-up of Mainland’s financial markets, the People’s Bank of China (“ PBoC ”), the SFC and the HKMA work together to enrich the product types under the Swap Connect by the following ways: (i) tenor of the interest rate swap contracts to be extended to 30 years; (ii) the scope be expanded to cover interest rate swap contracts using the Loan Prime Rate (“ LPR ”) as the reference rate. The Timeline for Mutual Access: Back in May 2023, following the launch of the Mainland-Hong Kong interest rate swap markets mutual access scheme (“ Swap Connect ”) for opening-up of Mainland’s financial markets, transaction volume under the scheme has been growing steadily. In 2024, the Swap Connect had been enhanced to provide more flexibility for offshore institutional investors to manage their interest rate risk, increasing the attractiveness of RMB assets. As of April 2025, 20 Mainland dealers and 79 offshore investors had participated in Swap Connect, completing more than 12,000 interest rate swap transactions with an aggregate notional amount of approximately RMB 6.5 trillion. SIGNIFICANCE: It is the second round of enrichment for Swap Connect since May 2024, the operational performance is amazing as stated above. Looking ahead, the regulatory authorities in Mainland and HK will continue to leverage on this promising scenario to enhance relevant arrangements for further opening-up of the financial markets in Mainland with an aim toward internationalization of RMB in a steady manner. 5. Renewed Mutual Recognition of Funds between Ireland and Hong Kong Further to the memorandum dated back on 5th November 1997, Central Bank of Ireland (“ CBI ”) and the Hong Kong SFC enter another memorandum of understanding for Mutual Recognition of Funds (“ MRF ”) on 14 May 2025. The purpose of the Memorandum is to enhance cooperation in relation to (i) collective investment schemes; and (ii) management companies of the CIS, either in Hong Kong or Ireland. The main points of the Memorandum are as below: (1) General Principles a) under the MRF, a CBI-authorized Irish Covered Fund (CBI-authorized “ ICFD ”) seeking or has received authorization in HK, shall : (i) meet the eligibility requirements; (ii) remain authorized by the CBI, and available to retail investors; (iii) be operated/ managed by relevant laws and regulations in Ireland; (iv) be sold and distributed in compliance with applicable laws in Hong Kong; (v) ensure investors in both Ireland and Hong Kong receive fair treatment; (vi) ensure ongoing disclosure of information be made available at the same time. b) if an ICFD complies with the relevant Irish laws and regulations, it is generally deemed to have complied in the same manner with those of Hong Kong, and will enjoy a streamlined process of authorisation for offering to the public; c) the existing Acceptable Inspection Regimes on managers and Recognised Jurisdiction Schemes on funds, and the streamlined measures are still applicable to ICFD. (2) Eligibility Requirements and types of eligible funds a) the requirements are set in details in the Annex B; b) for ICFD to be authorized by SFC, it must fall within at least one of the following eligible fund types: (i) general equity funds, bond funds, mixed funds and funds that invest in other schemes; (ii) feeder funds; (iii) unlisted index funds; (iv) passively managed index tracking exchange traded funds (ETFs); (v) listed open-ended funds. c) ALL ICFD must comply with the requirements under the “Requirements applicable to all Irish Covered Funds” below. (3) Requirements applicable to all Irish Covered Funds a) Representatives in Hong Kong (i) Appoint a firm as representative in HK. b) Operational and ongoing requirements (i) Home jurisdiction supervision: remain authorized by CBI. (ii) Changes to Irish Covered Funds: either notification or approval from SFC is required from the ICFD. (iii) Breach: report to SFC if the ICFD is found in breach of domestic laws. (iv) Withdrawal of authorization. c) Sales/ distribution, offering documents, ongoing disclosure and advertisements (i) Sales/ distribution: by intermediaries licensed with SFC. (ii) Offering documents: must be complete, accurate, fair, clear and effective, and up-to-date. (iii) Ongoing disclosure: be made available at the same time in both locations. (iv) Language: in English and Chinese. (v) Advertising. (vi) Fees. (4) Requirements applicable to each specific type of Irish Covered Funds a) Please refer to Annex A for details (5) Application Process a) FASTrack (i) ICFD seeking authorization will be processed under the FASTrack. b) Two-stream approach (i) If the ICFD does not meet the FASTrack requirements, the process of “Standard Applications” stream and “Non-standard Applications” stream will apply. SIGNIFICANCE: Ireland is a dominant global hub for fund management, particularly renowned as the leading domicile for UCITS funds. Its strengths include EU market access via passporting, a favourable tax treaty network, and deep expertise. Partnering with Ireland is vital for Hong Kong as it provides crucial entry to the vast EU investor base and distribution networks, while Hong Kong offers Ireland a strategic gateway into Asian markets. Enforcement News 6. SFC Fines Sino-Rich $2 Million and Suspends its Responsible Officer for Margin Lending Failures SFC has reprimanded and fined Sino-Rich Securities & Futures Limited (“ Sino-Rich ”) $2 million for significant lapses in its margin lending policy and practices between 1 December 2017 and 30 September 2019. The firm failed to properly document its margin lending policy, neglected to enforce a requirement that clients’ credit limits be based on objective proof of their net income or net worth, and did not mandate written justifications for policy deviations. In addition, the SFC has suspended the license of Mr. Budihardjo Wilhelm Soeharsono, a responsible officer at Sino-Rich, for five months and two weeks, from 8 May 2025, to 22 October 2025. The SFC holds Mr. Budihardjo accountable for failing to fulfil his oversight duties as a senior manager during this period. Key Factors in the SFC’s Decision The SFC considered several factors when determining the penalties: Prior Disciplinary History: Both Sino-Rich and Mr. Budihardjo faced SFC sanctions previously—Sino-Rich in 2021 for anti-money laundering lapses Mr. Budihardjo in 2009 for inadequate client monitoring at another firm. Remedial Efforts: Sino-Rich has since taken steps to enhance its margin lending practices. Cooperation: The firm and Mr. Budihardjo cooperated fully with the SFC’s investigation. Financial Position: Accounting for Sino-Rich’s financial situation and cooperation, the fine was reduced from a potential $3.5 million to $2 million. SIGNIFICANCE: This disciplinary action highlights the critical need for robust compliance in margin lending, an area where lax policies can expose firms and clients to significant risks. Licensed corporations are urged to ensure their lending practices are well-documented and strictly enforced to align with regulatory standards. 7. SFC Issues Restriction Notice to Bloomyears Limited On 21 May 2025, SFC has imposed a restriction notice on Bloomyears Limited (“ Bloomyears ”), prohibiting the firm from conducting its licensed activities or managing any property, including client assets, without prior SFC approval. This decision, driven by concerns over Bloomyears’ reliability, integrity, and competence, signals potential risks to investors as the SFC’s investigation continues. SIGNIFICANCE: SFC issued the notice due to doubts about Bloomyears’ fitness and properness to remain licensed, citing deficiencies in its reliability, integrity, and ability to operate competently, honestly, and fairly. The regulator views this action as necessary to protect the investing public and uphold public interest. SFC’s investigation into Bloomyears is ongoing, suggesting that additional findings or enforcement measures may follow. The restriction notice serves as an interim step to limit potential harm while the inquiry progresses. 8. SFC Revokes Mui Chok Wah’s Licence following Theft Conviction and Regulatory Breach for Non-disclosure SFC has taken significant disciplinary action against Mr. Mui Chok Wah, revoking his licence and banning him from the financial industry for two years, effective from 16 May 2025 to 15 May 2027. This decision follows Mui’s criminal conviction for theft and his failure to promptly notify the SFC of the criminal charge against him, which constitutes a breach of regulatory requirements. On 13 June 2024, Mui was arrested and charged by the Hong Kong Police Force for stealing a wallet left on an ATM machine. He was convicted of theft by the Eastern Magistrates’ Courts on 11 September 2024. Mui pleaded guilty and was sentenced to two months’ imprisonment, suspended for three years, and ordered to pay HKD 3,400 in restitution for the stolen items. SIGNIFICANCE: The SFC’s decision to revoke Mui Chok Wah’s licence and impose a two-year ban reflects its rigorous approach to enforcing regulatory standards. This case highlights the critical importance of transparency, timely reporting, and maintaining professional conduct in the financial industry. Licensed individuals and firms are encouraged to ensure compliance with all regulatory requirements to avoid similar disciplinary actions. 9. The Responsible Officer of Lion Futures Limited is Banned for breach of AML/CFT Regulations SFC has imposed a five-month ban on Mr. Ho Hin Hang, a former responsible officer (“ RO ”), manager-in-charge (“ MIC ”), and director of Lion Futures Limited (“ LFL ”). The ban, effective from 21 May 2025 to 20 October 2025, stems from compliance failures during his tenure at LFL between May 2017 and September 2018. This disciplinary action follows previous sanctions against LFL for breaches of anti-money laundering and counter-terrorist financing (“ AML/CFT ”) regulations and other regulatory requirements from May 2017 to July 2019. Key Findings SFC investigation found that LFL, under Mr. Ho’s oversight, failed to perform adequate due diligence on clients using client-supplied systems (“ CSSs ”) to place orders. These systems, linked to LFL’s broker-supplied system (“ BSS ”) via application programming interfaces, presented significant risks of money laundering and terrorist financing, which LFL did not properly address. Furthermore, the firm lacked an effective system for ongoing monitoring to identify and evaluate suspicious trading patterns in client accounts. The SFC holds Mr. Ho accountable for these lapses, citing his failure to fulfil his duties as an RO and senior manager. SIGNIFICANCE: In deciding the sanction, the SFC highlighted: The severity of the compliance failures, which jeopardized market integrity and public trust. The need to send a clear deterrent message to the financial industry. Mr. Ho’s clean disciplinary history, which was considered but did not outweigh the need for action. This case reinforces the SFC’s commitment to enforcing robust AML/CFT controls and diligent oversight within Hong Kong’s financial markets. 10. SFC Prosecutes a Finfluencer for Providing Securities Advice Publicly without a Licence SFC has launched legal action against Mr. CHAU Pak Yin, previously known as CHAU Kin Hei, a financial influencer (the “ Finfluencer ”) on social media. On 8 May 2025, the Eastern Magistrates’ Court scheduled a pre-trial review for 24 July 2025 after CHAU pleaded not guilty to charges of advising on securities without a license. Background Finfluencers are individuals who share investment-related content on social media platforms. The SFC alleges that between 16 April 2021 and 14 May 2021, CHAU hosted a Telegram chat group where he provided securities advice. This activity, conducted without an SFC license and without reasonable excuse, is claimed to violate sections 114(1)(a) and 114(8) of the SFO. SIGNIFICANCE: Under the SFO, "advising on securities" is the Type 4 Regulated Activity requiring a license from the SFC. The SFC’s enforcement efforts aim to protect investors and maintain market integrity by ensuring that only licensed individuals engage in regulated activities like securities advising. This case serves as a warning to finfluencers and others providing financial advice online. The SFC also urges investors to verify the licensing status of individuals and firms offering securities dealing services. This can be done easily through the SFC’s Public Register of Licensed Persons and Registered Institutions, accessible at www.sfc.hk . Engaging with unlicensed parties poses significant risks, including financial loss and fraud. 11. Court Convicts Brothers-in-Law of False Trading Conspiracy in Pa Shun Shares The Eastern Magistrates’ Courts today convicted Mr. LIN Tai Fung and his brother-in-law, Mr. OR Chun Nin, after they pleaded guilty to conspiracy to commit false trading in the shares of Pa Shun International Holdings Limited ( 00574.HK ) (“ Pa Shun ”) between 9 April 2017 and 7 March 2018. The prosecution was initiated by the SFC. Details of the Conviction False Trading Conspiracy : LIN and OR conspired to purchase Pa Shun shares to artificially maintain the closing share price at or above a certain level, misleading investors about the stock’s attractiveness. Failure to Disclose Interests : LIN also pleaded guilty to failing to notify the Stock Exchange of Hong Kong of changes in his shareholding in Pa Shun on eight occasions between 2 June 2017 and 14 March 2018, despite a legal obligation to do so. The case has been adjourned to 10 June 2025 for sentencing. Both individuals were granted bail with conditions of $20,000 cash bail and $50,000 surety. SIGNIFICANCE: SFC issued the notice due to doubts about Bloomyears’ fitness and properness to remain licensed, citing deficiencies in its reliability, integrity, and ability to operate competently, honestly, and fairly. The regulator views this action as necessary to protect the investing public and uphold public interest. SFC’s investigation into Bloomyears is ongoing, suggesting that additional findings or enforcement measures may follow. The restriction notice serves as an interim step to limit potential harm while the inquiry progresses. 12. SFC Disqualifies National Agricultural Executives for Multiple Financial Misconduct SFC has secured disqualification orders from the Court of First Instance against former directors and a senior executive of National Agricultural Holdings Limited ( 01236.HK ) (“ NAH ”), barring them from corporate management roles in Hong Kong for periods ranging from two to nine years. This follows an investigation revealing significant financial misconduct and breaches of duty. Key Findings The SFC uncovered multiple instances of misconduct: Unpaid Shares : NAH’s controlling shareholder, Parko (Hong Kong) Limited, failed to pay approximately HK$676 million for 212,194,500 shares allotted on 9 June 2015. Fund Misappropriation : Between January and June 2015, HK$384 million was transferred to another company under the pretext of establishing an investment fund for NAH, orchestrated by former chairman Mr. CHEN Li-Jun. The funds were diverted for unrelated purposes, including transfers to Parko. Suspicious Transfers : In August 2017, a refund of RMB1.85 billion from lapsed transactions was quickly moved out of NAH through dubious transactions for unknown purposes. Unauthorized Transfer : In 2015, CHEN transferred HK$50 million from NAH to a connected company without justification, disguising it as a loan to another entity. Roles, Breaches and Disqualification Details Name Roles and Breaches Disqualification Ms. LU Ying As financial manager, she coordinated the questionable payments and knew or should have known of the misconduct. Disqualified for nine years. Mr. REN Hai; and Mr. PENG Guojiang As executive directors and Parko directors, they allowed Chen to dominate NAH’s affairs for personal benefit, failing to investigate or address the misconduct. Each disqualified for seven years. Mr. TING Tit Cheung As an independent non-executive director and audit committee member, he neglected oversight duties, ignoring auditor concerns and failing to question suspicious transactions. Disqualified for two years. The above-mentioned individuals are prohibited from serving as directors, liquidators, receivers, or managers of any corporation in Hong Kong, including NAH and its affiliates, and from participating in corporate management. They were also ordered to cover the SFC’s legal costs. They all admitted to breaching their duties to NAH, leading to the court’s orders. SIGNIFICANCE: This action follows disqualification orders against three other NAH directors on 23 June 2023, signalling ongoing efforts to address governance failures at the company, whose shares were delisted from the Hong Kong Stock Exchange in November 2019. Orders reinforce the SFC’s commitment to upholding corporate governance standards, protecting investors, and maintaining Hong Kong’s financial market integrity. Stakeholders are encouraged to prioritize robust oversight in their organizations. Case Reference: HCMP 36/2021 [End of ComplianceOne Newsletter –May 2025] For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================= The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or WhatsApp us at (852) 95164607 . Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk

A Tour of Recent Developments of the VA Regulatory Regime in Hong Kong Recent Developments (1) Hong Kong Expands Crypto Market with Derivative Trading for Professional Investors The SFC is ready to introduce virtual asset derivatives trading for professional investors as part of its efforts to increase product diversity and reinforce robust risk controls. The move is part of Hong Kong's drive to enhance its competitiveness in the global digital asset market. With this in mind, the SFC will focus on robust risk management measures to ensure orderly, transparent, and secure trading. The proposed product is designed to facilitate efficient risk transfers, increase liquidity in spot markets where cryptocurrencies area traded instantly, and assist experienced investors in implementing their hedging and leveraging strategies. The Financial Services and the Treasury Bureau is preparing a second policy statement on virtual assets, exploring how to harness traditional financial services and emerging technologies to drive growth in the VA market. More encouraging, virtual assets will be classified as qualifying transactions under Hong Kong's preferential tax regimes to attract international fintech players. (2) Second policy statement on development of digital assets issued to scale Hong Kong to new heights of global digital asset leadership On 26 June 2025, the HKSAR Government issued its long-awaited Policy Statement 2.0 on the Development of Digital Assets in Hong Kong, reinforcing its commitment to establishing Hong Kong as a global hub for innovation in the digital asset (DA) field; built upon the foundational measures outlined in its initial policy statement in October 2022. The Policy Statement 2.0 sets out a vision for a trusted and innovative DA ecosystem that prioritizes risk management and investor protection; the latest statement introduces the main theme of “ LEAP ” framework with focuses on: Legal and regulatory streamlining : The government is establishing a comprehensive regulatory framework for DA service providers, including DA exchanges, stablecoins issuers, DA dealing service providers, and DA custodian service providers. Expanding the suite of tokenised products : The government will regularize the issuance of tokenised Government bonds and incentivize the tokenisation of RWAs to enhance liquidity and accessibility. Advancing use cases and cross-sectoral collaboration : The government is fostering collaboration among regulators, law enforcement agencies, and technology providers for the development of DA infrastructures. People and partnership development : The government is strengthening talent development through partnerships with industry and academia, positioning Hong Kong as a centre of excellence for DA knowledge-sharing and international cooperation. (3) Next move is to seek opinion from market practitioners. Starting with the first “ Public Consultation on Legislative Proposal to Regulate Dealing in Virtual Assets ” (a non-exhaustive extract) (1) Scope and coverage : any person who conducted a business in providing services of spot trade of any VAs in Hong Kong will need to be licensed (2) Business types and Business models: a) simple dealing; b) more complex dealing services; c) all other VA dealing services. (3) Exemptions: a) stablecoin issuers who (i) are licensed by the HKMA and (ii) conduct offering or redemption of the stablecoins they issue in the primary market; b) peer-to-peer trading of VAs between individuals where no intermediary is involved. (4) Regulatory Requirements: a) VA dealing service providers that fall within the scope will need to be licensed or registered; b) The SFC will set out standards of the requirements. (5) Regulatory Principle: a) taking the “same activity, same risks, same regulation” principle, taking reference from the VATP licensing regime. (6) Eligibility: a) A HK company with two ROs with sufficient financial resources such as HKD5M as minimum paid-up capital or HKD3M as minimum required liquid capital; b) A licensee or registrant will have to set up a token admission and review committee establishing, implementing and enforcing the criteria for any VA to be made available for/withdrawn from trading; c) deposits/withdrawals of clients’ VAs to/from the licensees’ wallet addresses; d) Investor Protection: assessing clients’ VA knowledge, risk profiling, position limits etc. (7) Licensing Matters: no deeming arrangement to the pre-existing VA dealing service providers. (8) Powers of the Regulatory Authorities: the SFC still being the licensing and registration authority, and be empowered to impose licensing and registration conditions. (9) Sanctions: to achieve the necessary deterrent effect and to ensure regulatory parity among different regimes relating to VA activities (10) Public Consultation. (4) Then come with the next round for “ Public Consultation on Legislative Proposal to Regulate Virtual Asset Custodian Services ” (a non-exhaustive extract) (1) Definition: the provision of VA custodian service as a business is proposed to be defined as: by way of business, the safekeeping of (i) VAs on behalf of clients; or (ii) instruments enabling transfer of VAs of clients (including but not limited to private keys) on behalf of clients. (2) Incidental Exemption for SFC or HKMA regulated entities where the safekeeping of client VAs is wholly incidental to the principal business of providing the VA service. (3) Examples of VA Custodian like associated entities of SFC-licensed VATPs or banks, licensed or registered fund managers etc. (4) Eligibility: a regime similar to Type 13 regulated activity. (5) Licensing Issues: no deeming arrangement to the pre-existing VA Custodian. (6) Powers of the Regulatory Authorities: the SFC still being the licensing and registration authority, and be empowered to impose licensing and registration conditions. (7) Sanctions: to achieve the necessary deterrent effect and to ensure regulatory parity among different regimes relating to VA activities. (8) Public Consultation. Active participations from market participants (5) GF Securities (Hong Kong) issued its first tokenised securities HashKey Chain announced that GF Securities (Hong Kong) Brokerage Limited (“ GFS ”) as the first brokerage firm to issue tokenized securities in Hong Kong, has now fully integrated with HashKey Chain as the core on-chain issuance network, and has launched the first daily redeemable tokenized security ,"GF Token". High-net-worth individual professional investors and institutional professional investors can participate in subscription and trading. "GF Token" is a tokenized security issued by GFS based on its credit rating support where the issuance to investors includes three currencies: USD, HKD, and CNH. Among them, the yield of the US dollar tokenized securities is anchored to the Secured Overnight Financing Rate (“SOFR”), providing users with a fair, transparent, and low-volatility cash management tool denominated in USD. HashKey Group Chairman Xiao Feng stated that the on-chain integration of Real-World Assets (RWA) requires genuine two-way integration between financial institutions and blockchain technology platforms, and the release of the "GF Token" materialized this concept. ComplianceOne Consulting Limited 15 July 2025

The topics discussed in this monthly newsletter are as follows: ComplianceOne Newsletter - January 2024 The topics discussed in this monthly newsletter are as follows: 1. New TV drama “SFC in actions” highlights SFC’s enforcement work 2. SFC sets out three-year Strategic Priorities 3. SFC will commence circularisation exercise and internal control review on selected securities brokers 4. SFC issues guidance to eligible licensed corporations on participation in Wealth Management Connect scheme 5. SFC suspends Andy Wong Yeung for 10 months for failure in due diligence in client-supplied system (CSS) MARKET NEWS 1.New TV drama “SFC in Action" highlights SFC’s enforcement work On 10 Jan 2024, the SFC announced that it had teamed up with Radio Television Hong Kong (RTHK) to produce a new series of “SFC in Action (證義搜查線之騙局拼圖)”, a law-enforcement TV drama premiering on RTHK TV 31 starting 11 January 2024. Consisting of four half-hour episodes in Cantonese, the series recounts the SFC’s major enforcement cases in recent years, focusing on social media investment scams, ramp and dump schemes, insider dealing and market manipulation. It reveals the modus operandi of wrongdoers in the financial markets today and helps to alert the public to act with caution when making investment decisions. The true-to-life TV drama is the fourth series since 2010 to illustrate to the public prevalent investment scams and other market misconduct, to help them to avoid falling victim to these scams. As Ms Julia Leung, the SFC’s Chief Executive Officer, had said: “ Our market evolves with the times and technological advances, but the fundamental nature of investment scams and misconduct has not changed. ” After the premiere on RTHK TV 31, all four episodes can also be viewed on the SFC’s YouTube channel (Chinese version only). SIGNIFICANCE: As Mr. Christopher Wilson, the SFC’s Executive Director of Enforcement, said: “ Through action-packed dramatization of enforcement cases, the series delivers a clear message to the market and the public by showcasing the SFC’s relentless pursuit of wrongdoers and their misconduct. ” Moreover, by bringing these cases to life through TV and YouTube channels which are more accessible to the public at large, it helps bridge the gap between complex fraudulent schemes and ordinary experiences of the public, and ultimately attaining the aim of enhancing public alertness to these fraudulent activities. 2. SFC sets out three-year Strategic Priorities In a circular dated 23 Jan 2024, the SFC releases its three-year Strategic Priorities for 2024-2026, setting out its approach to developing Hong Kong’s securities markets, addressing risks and protecting investors. Making clear that the SFC is committed to continuing to facilitate market development as well as safeguarding the integrity and quality of the Hong Kong markets, in the coming three years, the SFC will strive to: Maintain market resilience and mitigating serious harm to our markets; Enhance the global competitiveness and appeal of the Hong Kong capital markets; Lead financial market transformation through technology and ESG; and Enhance institutional resilience and operational efficiency. Mr Tim Lui, the SFC’s Chairman, said: “ With this roadmap, the Commission is now better placed than ever to respond robustly and creatively to new regulatory challenges at home and abroad and to shape market developments. In particular, we are committed to playing an even more active part in further strengthening Hong Kong’s unique role as a gateway to the Mainland and positioning the city as an offshore hub for RMB businesses and risk management, as well as supporting national development and safeguarding financial security. ” Ms Julia Leung, the SFC’s Chief Executive Officer, said: “ The Commission would be on a stronger footing to keep investors out of harm’s way and bring wrongdoers to justice when financial crimes nowadays come in any shape and form, as well as to bring the full range of resources and tools at its disposal to achieve positive regulatory outcomes. ” SIGNIFICANCE: The statements from seniors of the SFC can be conceived of its duo purposes of determination to develop the financial edges of Hong Kong being in vicinity to Mainland China while enforcing the regulatory side of combating the complex financial fraudulent malpractices and bringing wrongdoers to justice. 3. SFC will commence circularisation exercise and internal control review on selected securities brokers The SFC announced in the circular dated 23 Jan 2024 that it will commence in February 2024 a circularisation exercise on clients’ accounts of selected securities brokers and an internal control review of these brokers’ safeguarding of client assets (collectively the “ Exercise ”). The SFC has engaged KPMG Advisory (Hong Kong) Limited (KPMG) to assist with the Exercise, which includes obtaining direct written confirmation from selected clients. Some Key Takeaways: Client Asset Protection Client asset protection is always a top priority of the SFC in supervising licensed corporations (LCs). The SFC also conducts regular circularisation exercises such that both the SFC and brokers’ management could obtain direct confirmations from clients on their account positions and identify any potential misconduct such as unauthorised trading and misappropriation of client assets. Circularisation exercise To facilitate the conduct of the circularisation exercise, brokers are reminded to ensure that their clients’ personal information is accurate and up-to-date, including clients’ identities and contact details, clients’ account positions and balances, and finally the clients have to sign and return their replies directly to KPMG . Internal control review The review will cover brokers’ internal control systems that are designed to protect client assets, such as their controls over client information maintenance, clients’ money and securities reconciliation, as well as the distribution of account statements and trade documents. Moreover, brokers’ compliance with the expected regulatory standards will also be assessed with reference to the following SFC circulars: Review of internal controls for the protection of client assets and supervision of account executives and a self-assessment checklist issued on 19 December 2018; Third-party deposits and payments issued on 31 May 2019; Operation of bank accounts issued on 28 June 2021; and Managing the risks of business email compromise issued on 24 March 2022. SIGNIFICANCE: Brokers are expected to have effective and robust controls in place to protect client assets. Where appropriate, the SFC may share the findings of the Exercise with the industry. The previous time the SFC conducted similar exercises was in 2017, it will be a good time after a couple of years to assess if the brokers have taken substantial remedial measures in the interim to ensure compliance with the circulars given the deficiencies observed in the industry. Responsible Officers should make reference to these circulars again and have a self-assessment of the internal controls if they are implemented to the standards expected of the SFC. 4. SFC issues guidance to eligible licensed corporations on participation in Wealth Management Connect scheme The SFC issued a circular on 24 Jan 2024 setting out the eligibility criteria and guidance for licensed corporations (LCs) to participate in the Cross-boundary Wealth Management Connect Pilot Scheme (跨境理財通) (WMC Scheme) in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Eligible brokers’ participation in the WMC Scheme was made possible by the revised Implementation Arrangements published the same date by the People’s Bank of China for the Cross-boundary WMC Pilot Scheme in the GBA (Implementation Rules) . In the other revised arrangements, the individual investment quota is increased to RMB 3 million while the product scope is expanded to include funds with higher risk ratings. The revised Implementation Rules will take effect on 26 February 2024. LCs interested in participating in the WMC Scheme should submit applications to the SFC in the form as a business plan with a self-assessment report certified by their Manager-in-Charge (MIC) – Overall Management Oversight, MIC – Compliance and head of internal audit function, to demonstrate its operational readiness. Precisely, the LCs should have: (i) been licensed for Type 1 regulated activity, (ii) paid-up capital and shareholders’ funds of not less than HK$100 million, (iii) at least three years of experience in distributing funds and/or bonds, (iv) transaction volume of not less than HK$500 million during any 12-month period in the past three years, (v) adequate systems of control, and (vi) partner with one or more eligible Mainland broker when providing services under the WMC Scheme. SIGNIFICANCE: The view of the SFC is positive and optimistic as Ms. Julia Leung, Chief Executive Officer of the SFC, said “ The enhancements mark a major milestone in the expansion of the WMC Scheme to deepen and broaden Hong Kong’s financial integration with the Greater Bay Area. ” And she further added that “ eligible brokers’ participation in the Scheme does not only open up new opportunities to the industry, but also broaden the reach of the Scheme to new customer base. ” Interested LCs should note that they may only conduct business activities under the Southbound Scheme, the Northbound Scheme or both upon receiving the no objection notification from the SFC after submission of the business plan and a self-assessment report. To assist the LCs, the SFC has made it clear that interested LCs are encouraged to notify and discuss their business plan with their case officer in the SFC in advance should they wish to participate in the Cross-Boundary WMC. ENFORCEMENT NEWS 5. SFC suspends Andy Wong Yeung for 10 months for failure in due diligence in CSS In an announcement on 9 January 2024, the SFC had suspended Mr Andy Wong Yeung, former responsible officer (RO), manager-in-charge (MIC) of key business line and overall management oversight and director of City International Futures (Hong Kong) Limited (CIFHKL), for 10 months from 9 January 2024 to 8 November 2024. The disciplinary action follows the SFC’s sanctions against CIFHKL for its failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements between March 2016 and October 2018. The SFC considers that CIFHKL’s failures were attributable to Wong’s failure to discharge his duties as an RO and a member of the senior management of CIFHKL during the material time. The SFC’s investigation found that CIFHKL, without conducting adequate due diligence, was unable to properly assess and manage the AML/CTF and other risks associated with permitting its clients to use client supplied systems (CSSs) in placing orders. The SFC also found that CIFHKL failed to conduct proper enquiries on client deposits which were incommensurate with the clients’ declared financial profiles and establish effective ongoing monitoring system to detect and assess suspicious trading patterns in client accounts. SIGNIFICANCE: The case reiterates the severe and potential regulatory risks in allowing the use of CSS from the client side where proper due diligence cannot be executed to ensure a satisfactory compliance standard! It can also be observed that cases of this category were always associated with client deposits were incommensurate with the clients’ declared wealth status which posed high AML/CTF risks to the LCs. For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================= The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or WhatsApp us at (852) 95164607 . Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk

ComplianceOne Newsletter – February 2022In this month’snewsletter, we will talk about:1 The Decreasing Mar ComplianceOne Newsletter – February 2022 ComplianceOne Newsletter – February 2022 In this month’s newsletter, we will talk about: 1. The Decreasing Market Share of Category C Broker with respect to the Report from HKEX 2. I-Access Investors Limited (一通集團有限公司) Announced its Decision of Business Closure 3. SFC Concludes the Consultation on Regulating Trustees and Custodians of Public Funds [Type 13 Regulated Activity] 4. Proposed regulatory regime for VA service providers 5. SFC issues the Quarterly Report 6. SFC Reprimands and Fines South China Commodities Limited $4.8 million for Regulatory Breaches 7. Court Orders Insider Dealers to Pay $12.9 Million to Investors MARKET NEWS 1. HKEX Exchange Participants’ Market Share Report The Hong Kong Exchanges and Clearing Limited (HKEX) EP’s Market Share Report demonstrated a continual decrease in the daily turnover, recorded with a month-over-month drop of 9.84% to HKD10.85 billion. The total turnover last year was 37.14 trillion, with a monthly average of HKD3.09 trillion. For the EPs, Category A (position 1st to 14th ) accounts for 60.36% of the total market share; Category B (position 15-65) accounts for 33.69; while the lowest Category C (position below 65) accounts only for 5.95%, slightly dropped below 6%. According to data published in JAN 2022, there were 570 securities brokers in CAT C (as compared with a total of 635 securities brokers), it has come to the situation where CAT C brokers are on the verge of struggling to maintain a continuity of business. Significance: With an economy already serious impaired by the lethal epidemic, people at large are generally economizing on the expenses lest to say being sacked; and with the increasing demand for IT technology amid the online trading and Work From Home (“WFH”) with remote access arrangements, coupled with the necessity to cater for the flexibility of duty rotations in case of infected personnel; all are squeezing the already limited availability of resources of the CAT C brokers, particularly with the phenomenon of increasing operating costs far beyond their forecast. A determination of the employees and senior management team to explore more opportunities in other related areas like wealth management, sales of funds is of top priority, not to exclude the possibility to start a new career path in other industries. 2. I-Access Investors Limited (一通集團有限公司) Announces its Decision of Business Closure According to the formal announcement, I-Access Investors Limited (I-Access) will terminate all online investment services on 31 March (Thursday) this year. I-Access is famous as a discounted securities broker, which charges only HK$5 per trade. The reasons are that as the number of infected staff increases, it poses a shortage in human resources which adversely affects the daily normal operations of the company. Therefore, the Board of Directors of I-Access unanimously decided to close business before the situation gets worse. All clients with outstanding margin loans have to settle the amount by 18 March 2022, while clients with securities holdings have to either take their shares physically, or to give SI to transfer to other brokers. For clients with futures accounts, they can either hold the positions until maturity in March 2022, or to close position anytime beforehand 30 March 2022. Significance: The incidence of I-Access may be just a beginning of a series of business closures of the licensed corporations. The epidemic poses serious uncertainty to the forecast of operation disruption and economic drawdown to a scale where normal business continuity plan is not be able to address. 3. SFC Concludes the Consultation on Regulating Trustees and Custodians of Public Funds and Further Consults on the Implementation Details The Securities and Futures Commission (SFC) recently released consultation conclusions and began a further consultation on a proposal to regulate depositaries (i.e., top-level trustees and custodians) of SFC-authorised collective investment schemes (CIS). Back to 2019, the SFC had launched a consultation proposing to introduce a new regulated activity, Type 13 Regulated Activity ( RA 13 ), to put depositaries of SFC-authorised CIS under the SFC’s direct supervision. Feedbacks from respondents were generally supportive of the proposal, with some seeking clarification of the proposed licensing scope and conduct requirements. Significance: As commented by Mr Ashley Alder, the SFC’s Chief Executive Officer, “ The RA 13 regime will enhance the regulation of public funds in Hong Kong by regulating how depositaries safeguard scheme assets and oversee scheme operations. The new regulatory framework is in line with those in other leading international markets and is an important part of the SFC’s efforts to develop Hong Kong as an international, full-service asset management centre. 4. The HK Government Proposed a Regulatory Regime for Virtual Asset Service Providers Considering the rapidly changing landscape of Virtual Assets ( "VA" ), the FATF has recommended in its guidelines that, for the purpose of regulation, VA should be defined using a functional approach. Accordingly, under the proposed licensing regime for VA service providers, the Government has proposed to define VA having regard the definition adopted by the FATF which will require that the asset must be a medium of exchange accepted by the public for payment, settlement of debts or investment, and that it can be transferred, stored or traded electronically. Any VA, so long as it meets the definition and does not fall into the exempted categories to be specified in the Ordinance (e.g. digital currency issued by central bank, airline miles, credit card rewards, etc. that are closed loop and limited use tokens that cannot be transferred, traded or exchanged), will be covered in the definition of VA. In addition, the Securities and Futures Commission (SFC) has also reminded investors of the risks of trading VA through statements and circulars from time to time, including for instance a statement issued in July 2021, reminding investors that when investing in VA, they should pay attention to the use of unregulated trading platforms. The SFC and the HKMA have also issued circulars to the banking and securities sectors to give guidance on the arrangements for intermediaries in the banking and securities sectors to provide VA-related services. 5. The SFC issues Quarterly Report The Securities and Futures Commission (SFC) announced in the report that the income for the quarter was $535 million, 13% lower than the previous quarter and 27% lower than the same quarter last year. Whereas the average daily turnover in Hong Kong’s securities market was $134 billion, 21% lower than the $170 billion recorded in the previous quarter. The expenditure for the quarter was $461 million, slightly lower than last quarter and the same quarter last year; and with a recorded surplus of $74 million for the quarter. Key figures for the quarter report include: · The number of licensees and registrants totaled 48,657, of which 3,210 were licensed corporations. · The SFC vetted 40 new listing applications, including two from companies with weighted voting rights structures and one from a pre-profit biotech company. · The SFC authorized 45 unit trusts and mutual funds (including 27 Hong Kong-domiciled funds), four mandatory provident fund pooled investment funds and 48 unlisted structured investment products for public offering in Hong Kong. It registered 21 new open-ended fund companies. · 61 in-depth inspections of licensed corporations were conducted to review their compliance with regulatory requirements. · The SFC made 1,284 requests for trading and account records triggered by untoward price and turnover movements. · It issued section 179 directions to gather additional information in 14 cases and wrote to detail its concerns in one case as part of its review of corporate disclosures. · Five licensed corporations and nine individuals were disciplined, resulting in total fines of over $23 million. ENFORCEMENT NEWS 6. SFC Reprimands and Fines South China Commodities Limited $4.8 million for Regulatory Breaches The Securities and Futures Commission (SFC) has reprimanded and fined South China Commodities Limited (SCCL) $4.8 million for failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements between June 2017 and October 2018. The SFC’s investigation found that SCCL did not conduct any due diligence on the Customer Supplied Systems (CSSs) used by 19 clients for placing orders during the material time. As a result, SCCL was not in a position to properly assess and manage the money laundering and terrorist financing (ML/TF) and other risks associated with the use of such CSSs by its clients. In addition, the SFC identified that the amounts of deposits made into four client accounts were incommensurate with their declared financial profiles. SCCL claimed that it was not aware of these anomalies which in view of the SFC that SCCL failed to demonstrate that it had conducted proper enquiries on the deposits. The SFC further found that SCCL’s failure to put in place an effective ongoing monitoring system to detect suspicious trading patterns in client accounts resulted in its failure to detect 3,783 self-matched trades in nine client accounts. Significance: This is the third brokers that was reprimands by the SFC because of failures to monitor trading activity via Customer Supplied Systems (CSSs) in the past several months. The licensed corporations ("LC") should be more prudent in granting the right to their clients for using their own CSS instead of the BSS provided by the LC itself. The due diligence process and the detection/monitoring of orders placed through these CSS used by the clients could not be effectively implemented; particularly with the co-incidence of large deposits incommensurate with the declared wealth status of the clients concerned. The findings of large amount of self-matched trades further exemplify the risk of identifying the ultimate persons who placed the orders as well as the ultimate beneficial owners behind the CSS. 7. Court Orders Insider Dealers to Pay $12.9 million to Investors The Court of First Instance has ordered that illicit profits of insider dealing in shares of TeleEye Holdings Limited (TeleEye) of $12,949,875 made by Ms Wei Juan and Mr Huang Yi, associates of Ms Yik Fong Fong, be paid to 63 investors. The funds will be paid out to court appointed administrators, Mr. Tsui Chi Chiu and Mr. Leonard Chan King Wai of Ernst & Young Transactions Limited, and distributed to the affected investors in proportion to the number of shares they sold to Wei or Huang between 29 February and 12 April 2016. The Securities and Futures Commission (SFC)’s Executive Director of Enforcement, Mr. Thomas Atkinson, said: “The broad effect of the orders will be to restore investors who transacted with Wei and Huang to their pre-transaction positions to the extent possible…. This case sends a clear message that the consequences of wrongdoing, including the costs of restoration or remediation, should be met by wrongdoers and not be borne by innocent investors or the market.” Significance: It demonstrates to the practitioners in the financial industry of the determination of the SFC and its zero tolerance to insider dealings which severely undermine the pillars of Hong Kong as an international financial center; more explicitly, the paramount philosophy that the wrong-doers should bear the costs and consequences of their wrong-doings, not the innocent investors at large. For more details please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================== The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to cs@complianceone.hk or call us at (852) 39550277. Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk To unsubscribe, please simply reply with “ I don’t like to know more about Compliance

The topics discussed in this monthly newsletter are as follows: ComplianceOne Newsletter – Feb 2025 The topics discussed in this monthly newsletter are as follows: REGULATORY UPDATES 1. SFC convenes inaugural VA Consultative Panel meeting 2. SFC sets out ASPIRe roadmap as blueprint to navigate Hong Kong as a global virtual asset hub 3. Hong Kong's market watchdog reviews 8 brokerages amid IPO oversubscription frenzy 4. SFC Supports Listing of Alternative Funds to Boost Investor Options 5. SFC Leads Regional Consensus on Sustainability, Tech, and Investor Protection 6. SFC proposes to relax position limits for key exchange-traded derivatives 7. SFC flags cybersecurity incidents in a thematic review report MARKET NEWS 8. SFC supports government budget measures 9. HashKey Capital is granted approval for VA discretionary accounts management services ENFORCEMENT NEWS 10. SFC Imposes Restriction Notices on Money Concepts Entities 11. SFC Launches Insider Dealing Case Against Wong Pak Ming Regulatory Updates 1. SFC convenes inaugural VA Consultative Panel meeting Earliest on 14 FEB, the SFC had convened an inaugural meeting of the Virtual Asset Consultative Panel (“ VACP ”) for the licensed virtual asset trading platforms (“ VATP ”s). Chaired by the SFC’s Executive Director of the Intermediaries Dr Eric Yip, the VACP comprises all the licensed VATPs represented by members of their senior management, and is expected to provide invaluable contribution to the SCF’s formulation of regulatory policy to further facilitate the development of a sustainable and resilient virtual asset ecosystem. Members of the VACP will collaborate towards the aim of identifying policy priorities, paving way for market and regulatory developments. As added by Dr Eric Yip, “The SFC looks forward to close collaboration with the members to encourage and develop innovation while ensuring adherence to regulatory standards in this rapidly changing landscape”. SIGNIFICANCE: The VACP is a good example of SFC’ s proactive engagement with the licensed VATPs in addition to its previous engagement in launching the swift licensing process for new VATP applicants with a streamlined approach. 2. SFC sets out ASPIRe roadmap as blueprint to navigate Hong Kong as a global virtual asset hub The SFC outlined 12 major initiatives to enhance the security, innovation and growth of Hong Kong’ s virtual asset (“ VA ”) market under a five- pillar “ ASPIRe ” roadmap, which stands for Access, Safeguards, Products, Infrastructure and Relationships. A snapshot of the pillars and initiatives: FIVE-pillars (incorporating the TWELVE initiatives) “ A-S-P-I-Re ” Roadmap for a Resilient Virtual Asset Ecosystem (1) Pillar A (Access) – Streamline market entry through regulatory clarity Key objectives: (i) Expand market accessibility (ii) Encourage responsibility participation (iii) Enhance investor opportunities Initiative 1 : Establish licensing regimes for OTC trading and custody services Initiative 2 : Attract global platforms, order flows and liquidity providers (2) Pillar S (Safeguards) – Optimising compliance burdens without compromising security Key objectives: (i) Align compliance requirements (ii) Adopt risk-proportionate oversight (iii) Promote regulatory clarity Initiative 3 : Explore adopting a dynamic approach to custody technologies and storage ratios Initiative 4 : Enhance insurance and compensation frameworks Initiative 5 : Clarify investor onboarding and product categorization (3) Pillar P (Products) – Expand product offerings and services based on investor categorisation Key objectives: (i) Enable risk-appropriate investment tools (ii) Safeguard retail investors (iii) Mitigate potential risks Initiative 6 : Explore regulatory framework for professional investor-exclusive new token listings and virtual asset derivative trading Initiative 7 : Explore virtual asset margin financing requirements aligned with securities market risk management safeguards Initiative 8 : Consider allowing staking and borrowing/lending services under clear custody and operational guidelines (4) Pillar I (Infrastructure) – Modernise reporting, surveillance and cross-agency collaboration Key objectives: (i) Strengthen market-wide oversight capabilities (ii) Early detection of illicit activities and misconduct (iii) Safeguard investor assets Initiative 9 : Consider solutions for efficient regulatory reporting and deploy advanced surveillance tools to detect illicit activities Initiative 10 : Strengthen local cross agency collaboration and promote cross border cooperation with global regulators (5) Pillar Re (Relationships) – Empower investors and industry through education, engagement and transparency Key objectives: (i) Enhance investor understanding (ii) Foster industry participation (iii) Promote fit-for-purpose policy making Initiative 11 : Consider regulatory framework for financial influencers (Finfluencers) to address new investor engagement channels Initiative 12 : Cultivate sustainable communication and talent network SIGNIFICANCE: Encountered with the ever-changing VA ecosystem, market participants are facing challenges from all edges: institutional-retail bifurcation, fragmented liquidity, and regulatory arbitrage risk due to discrepancies in development of VA regulatory regimes across regions; the SFC is pioneering itself with a pragmatic ASPIRe roadmap to secure and gradually materialize the mission of positioning Hong Kong as an international VA hub. 3. Hong Kong's market watchdog reviews 8 brokerages amid IPO oversubscription frenzy On 14 February 2025, a press release showing the SFC’s explicit concern with the oversubscription frenzy in IPO offering observed recently from eight brokers. Some key points are worth noted: the SFC will examine the brokers IPO financing policies, and advise that brokers should take into consideration the clients’ repayment ability, and set appropriate loan limit to avoid overfinancing; in November 2023 a couple of years ago, a circular form the SFC had been posted to remind brokers of the need to adopt a prudent risk management policy in providing IPO subscription services to its clients, in particular after the launch of FINI on 22 November then; since under the new FINI settlement, brokers are only required to pay for the maximum number of shares allotted in the IPO instead of the “full amount” of the subscriptions, thus allowing opportunities to further scale up the leverage offered to the clients. It is observed that some brokers tend to accept large subscription orders without collecting sufficient initial subscription deposits from clients as minimum upfront payments; brokers tend to take advantage of “the exemption to pay the full amount” to grant more IPO loans to the clients with larger multiples which further add fuel to boost up the oversubscription frenzy. SIGNIFICANCE: The FINI mechanism shortens the settlement period from “t+5” to “t+2” while at the same time alleviating the financial costs burden of having to pay the full amounts of subscription in previous arrangements. Though initial intention of the FINI is to streamline the IPO settlement process, it unexpectedly allows the possibility for more speculative IPO overfinancing activities. Market participants also expect the SFC to provide more clear guidelines on the margin-financing policies, not only as reference for prudent risk management, but also as a note of reminder to brokers of the potential risk of breaching the financial resources requirements amid the vehement buoyancy of IPO offerings. 4. SFC Supports Listing of Alternative Funds to Boost Investor Options The SFC of Hong Kong has issued new regulatory circular to encourage the listing of closed-ended alternative funds on the Stock Exchange of Hong Kong Limited (“ SEHK ”). Announced on 17 February 2025, this move aligns with the HKSAR Government’s 2024 Policy Address to expand private equity fund distribution and solidify Hong Kong’s position as a global asset management hub. Key takeaways: Funds already listed on recognized international exchanges may also qualify, subject to comparable regulations. Size & Scale: Funds must be sizeable (HK$780 million market cap), with management companies managing at least HK$780 million in alternative assets. Diversification: Funds should invest in well-balanced portfolios, with borrowing capped at 30% of net asset value (NAV). Transparency: NAV must be published quarterly, and offering documents must detail investment strategies, risks, and valuation methods. Investor Education: Management companies are urged to educate investors before launching these funds in Hong Kong. SIGNIFICANCE: “We’ve always welcomed closed-ended alternative funds,” said Ms. Christina Choi, SFC’s Executive Director of Investment Products. “This clarity will help investors tap into opportunities managed by top-tier asset managers.” This initiative broadens Hong Kong’s investment landscape, offering sophisticated investors access to alternative assets while maintaining robust safeguards. The SFC aims to balance innovation with investor protection, reinforcing the city’s financial competitiveness. 5. SFC Leads Regional Consensus on Sustainability, Tech, and Investor Protection The SFC has taken a pivotal role in shaping the future of capital market regulation across the Asia-Pacific, forging a united front with regional counterparts at the International Organization of Securities Commissions (“ IOSCO ”) Asia-Pacific Regional Committee (“ APRC ”) meetings held from 19 Feb 2025 to 21 Feb 2025, in Da Nang, Vietnam. Key takeaways: Collaborative Roadmap: Chaired by SFC CEO Ms. Julia Leung, the APRC brought together over 70 regulators from 19 jurisdictions to align on tackling scams, online harm, and investment fraud, while leveraging technology for regulatory innovation. Supervisory Cooperation: Vietnam’s State Securities Commission (“ SSC ”) joined as the 14th signatory to the APRC Multilateral Memorandum of Understanding (“ SMMoU ”), a milestone witnessed by Vietnam’s Finance Minister Mr. Nguyen Van Thang and celebrated during a signing ceremony. Global Dialogue: Ms. Leung co-chaired the EU-Asia-Pacific Forum on Financial Regulation, driving discussions on digitalization, fintech, and sustainable finance with European and regional financial leaders. Unified Approach to Emerging Challenges Regulators agreed on strategies to combat scams and harness generative AI and other technologies to enhance oversight. SFC senior executives also contributed to Enforcement and Supervisory Directors’ Meetings, sharing insights on enforcement trends, virtual asset safekeeping, and tech-driven supervision. Ms. Leung, in her keynote at the SSC Vietnam Symposium, underscored the APRC’s role: “This platform fosters collaboration essential for trust in our growing markets. Together, we can navigate emerging trends and risks effectively.” SIGNIFICANCE: As capital markets evolve with technology and sustainability at the forefront, the SFC’s leadership in the APRC reinforces Hong Kong’s role as a regulatory hub. This consensus sets the stage for stronger investor protection and innovation-friendly frameworks across the region. On the sidelines, Ms. Leung met with SSC Chairwoman Ms. Vu Thi Chan Phuong to deepen supervisory ties, focusing on crypto regulation and shared capital market priorities. Vietnam’s SMMoU entry marks a step forward in regional cooperation, enhancing information-sharing among Asia-Pacific regulators. For Ms. Leung’s full speech and more details, visit the SFC website . 6. SFC proposes to relax position limits for key exchange-traded derivatives On 27 February 2025, the SFC launched a Consultation proposing to increase the position limits for exchange-traded derivatives based on the three major stock indices in Hong Kong to keep pace with market development. To facilitate hedging activities of market participants, the proposals will lift the current position limits for the futures and options contracts as the table shown below: Underlying Index Existing position limit (net long/short position delta) Proposed position limit (net long/short position delta) Hang Seng Index (HSI) 10,000 15,000 (↑50%) Hang Seng China Enterprises Index (HSCEI) 12,000 25,000 (↑108%) Hang Seng TECH Index (HSTECH) 21,000 30,000 (↑43%) SIGNIFICANCE: These will enable Hong Kong’ s derivatives markets to keep pace with the growth in the market capitalisations of major stock indices and trading volumes of their constituents over the past years, without introducing additional risks to the markets. As Ms Julia Leung said, “ The relaxation of position limits will not only allow market participants to enjoy greater flexibility in managing positions, but also promote the liquidity and efficiency of both the derivatives and broader markets. ” 7. SFC flags cybersecurity incidents in a thematic review report Material cybersecurity incidents in recent years involving cyberattacks against licensed corporations (“ LC ”s) aroused attention of the SFC as LCs were vulnerable to significant business disruptions or hacking of client accounts. A Report on the 2023/24 Thematic Cybersecurity Review of Licensed Corporations (“ Report ”) was issued by the SFC on 6 February 2025 where eight incidents of material cybersecurity breach were reported to SFC between 2021 and 2024, examples identified are: unauthorized access to trading in clients’ account through loopholes in the network security of the LCs; end-of-life (“ EOL ”) software and weak algorithm for encrypting client data. In the light of these insufficient management oversight and inadequate controls on cybersecurity measures, the SFC has set out in the Report some standard of conduct expected of the LCs in relation to phishing detection and prevention, EOL software management, remote access control, third-party IT service providers management and cloud security. SIGNIFICANCE: As emphasized by Dr Eric Yip, the SFC’ s Executive Director of Intermediaries, that the LCs should take all necessary measures to tackle the sophisticated and prevalent cyberattacks, and failure to address these threats would cause detrimental influence on the LCs, their clients as well as the entire financial system in such a highly interconnected and digitalised world. Senior management should recognize the critical importance of safeguarding from and mitigating the cybersecurity risks by making reference to the Report for details. Market News 8. SFC supports government budget measures The SFC has expressed strong support for the Hong Kong government’s 2025-2026 budget measures, unveiled by Financial Secretary Paul Chan on 26 February 2025. These initiatives aim to solidify Hong Kong’s status as a leading international financial hub. Key takeaways: Boosting Securities and Derivatives Markets: SFC Chairman Dr. Kelvin Wong praised the budget for advancing Hong Kong’s securities, derivatives, and asset management sectors, reinforcing its competitive edge. Tech-Focused Listing Channel: The SFC will collaborate with Hong Kong Exchanges and Clearing Limited (“ HKEX ”) to launch a "technology enterprises channel," streamlining listings for tech and biotech firms. Listing Regime Refinement: A comprehensive review of listing rules, vetting processes, and market structures is underway, including exploring post-delisting trading mechanisms and optimizing dual/secondary listing thresholds. Risk Management Enhancements: The SFC will soon consult on raising position limits for key index derivatives to better serve investors. RMB Bonds and Fixed Income Hub: Partnering with the Hong Kong Monetary Authority, the SFC is crafting a roadmap to develop primary and secondary bond markets, alongside hosting a flagship forum in late 2025 to highlight Hong Kong’s strengths. Virtual Assets and Fintech: Following a mid-February regulatory roadmap, the SFC will guide the sustainable growth of Hong Kong’s virtual asset market, aligning with the government’s upcoming policy statement on blending traditional finance with innovative tech. SIGNIFICANCE: SFC CEO Ms. Julia Leung emphasized ongoing collaboration with regulators and stakeholders to strengthen Hong Kong’s role as a fixed income and currency hub, advance virtual asset markets, and deepen ties with Mainland China and global markets. The SFC’s proactive stance signals a dynamic year ahead for Hong Kong’s financial ecosystem. 9. HashKey Capital is granted approval for VA discretionary accounts management services Following the approval from SFC, Hashkey Capital is now able to offer discretionary account management services for virtual assets to professional investors (“ PI ”s) subject to type 9 license. This approval enables HashKey Capital to deliver customised services to professional investors subject to a pre-approved list of exchanges across the entire investment lifecycle ranging from: (i) tailored investment mandates: from spot investments to OTC trading and derivatives; (ii) flexibility in trading platforms: to offer discretionary account management service across a multiple of exchanges available to the clients taking into consideration the issues of compliance, operational efficiency; (iii) seamless strategy execution: providing a full-fledged discretionary account management from buying, selling, asset allocation, monitoring, rebalancing and final reporting. SIGNIFICANCE: Hindered by the complex virtual assets landscape, investors are always averse to the unforeseeable risks beyond their investment perspectives; discretionary account management services offer a bespoke solution by shifting the burden of regulatory and technical complexities from investors to professional market practitioners who are more conversant in the newly evolving regime. Enforcement News 10. SFC Imposes Restriction Notices on Money Concepts Entities The SFC took decisive action on 18 February 2025, issuing restriction notices to Money Concepts (Asia) Holdings Limited (“ MCAH ”) and its subsidiary, Money Concepts Asset Management Limited (“ MCAM ”). The SFC cited potential risks to the investing public and the broader public interest as key drivers for the restrictions. Restriction in Place: Both firms are barred from engaging in any licensed regulated activities—directly or via agents—without prior SFC approval, until further notice. SIGNIFICANCE: The move stems from concerns over their honesty, reliability, integrity, and competence in conducting regulated activities, raising doubts about their fitness to remain licensed. 11. SFC Launches Insider Dealing Case Against Wong Pak Ming The SFC kicked off criminal proceedings against businessman Wong Pak Ming on 27 February 2025, at the Eastern Magistrates’ Court. Wong, former chairman and controlling shareholder of Transmit Entertainment Limited (formerly Pegasus Entertainment Holdings Limited), faces charges of insider dealing tied to the company’s shares. Case Details Allegations : Wong is accused of counselling or procuring someone to trade Pegasus shares between 25 August 2017 and 17 October 2017, while possessing inside information about the company. Background : Pegasus, listed on Hong Kong’s Growth Enterprise Market in 2012 and later moved to the Main Board in 2015, was renamed Transmit Entertainment in March 2018 after Wong sold his controlling stake. Legal Basis : Insider dealing violates section 291 of the Securities and Futures Ordinance (“ SFO ”) . SIGNIFICANCE: No plea has been entered yet. The case is adjourned to March 27, 2025. Wong was released on $200,000 cash bail with conditions to stay at his provided address, notify police of any residence change, and inform the SFC 24 hours before leaving Hong Kong.This prosecution highlights the SFC’s ongoing efforts to combat market misconduct. [End of ComplianceOne Newsletter –February 2025] For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================= The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or WhatsApp us at (852) 95164607 . 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The topics discussed in this monthly newsletter are as follows: ComplianceOne Newsletter – June 2023 The topics discussed in this monthly newsletter are as follows: No "light-touch regulation" in Hong Kong new crypto rules SFC updated guidance to prepare for HKD-RMB Dual Counter Model HKEX’s New IPO Settlement Platform (FINI) to be launched in October HK Aiming to invite 200 family offices domiciled in Hong Kong by the end of 2025 130 Sustainability-Linked Bonds and ESG ratings of hundreds of listed companies displayed on the STAGE The SFC Annual Report 2022-23 SFC banned Xie Yanxiong for life for fraudulence and misrepresentation Taiping Securities (HK) Co Limited was fined $1.3 million for internal control failures over employee dealings Four people charged following SFC and Police joint operation against securities fraud and illegal short selling SFC obtained disqualification orders against former directors of National Agricultural Holdings Limited MARKET NEWS 1. No "light-touch regulation" in Hong Kong new crypto rules As Hong Kong has been advocating to global arena of its determination to develop HK as an international financial hub for virtual assets; in an interview at Bloomberg, the HKMA Chief Executive Eddie Yue Wai-man said that, “We will let them create the ecosystem here and that actually brings a lot of excitement. But that doesn’t mean light-touch regulation. ” Hong Kong has started marching into a new licensing regime for virtual assets service providers with effect from 1 June, and is preparing to grant the access to retail-investor participation for trading major tokens like Bitcoin and Ether. Apart from the regulatory guidelines published by the SFC, further guidelines for banks on serving crypto clients are still under progress. Despite negative news like bankruptcy of FTX exchange, and the high profile demonstration of the US officials to crack down on digital-asset business with enforcement actions, Hong Kong has been lowering its crypto guardrail to a “ reasonable and sustainable level ” from previous tight environment before. Aside from permits for virtual-asset platforms, a mandatory licensing regime for stablecoins — a type of crypto token that’s meant to hold a constant value — is due by 2023-2024. SIGNIFICANCE: Though regulatory bodies are showing that the surveillance of virtual asset landscape in Hong Kong is analogous to regulatory regime in other regions, and are by no means lenient compared with others, it cannot be denied that Hong Kong is one of the few jurisdictions where the government proactively participating in the nourishment and development of regulatory regime to foster the nascent growth of virtual assets business. It is also noted that the government is facilitating the onerous due diligence process of virtual asset exchanges to open bank accounts with local banks in Hong Kong which has always been a tough issue for many new participants or awaiting licensees in the virtual assets licensing regime. 2. SFC updated guidance to prepare for HKD-RMB Dual Counter Model The SFC published on 6 June 2023 a revised guidance on short selling reporting and stock lending record keeping to prepare for the launch of the HKD-RMB Dual Counter Model in the Hong Kong securities market on 19 June 2023. The Guidance Note on Short Selling Reporting and Stock Lending Record Keeping Requirements has been updated to cover inter-counter transactions of securities under the Dual Counter Model; and practical and operational examples can be found in the Frequently Asked Questions for Short Position Reporting as well. Suffice to say that the Guidance Note clarified that as HKD and RMB counters for the same security are of the same class, the following inter-counter transactions fall within the current framework: when an investor buys a security at one counter first and sells at another, the sale is considered an ordinary sale, and when a Dual Counter Model market maker sells a security at one counter and buys it at another, the inter-counter transaction falls under the current exemption, subject to certain conditions. SIGNIFICANCE: As Ms Julia Leung, the SFC Chief Executive Officer, had said, “the SFC supports dual counter trading, which will help promote the renminbi’s internationalisation and use as an investment currency.” With such dual counter in place, it provides an effective and efficient mechanism for market makers with improved market liquidity and helps minimise price differences between the two counters. 3. HKEX’s New IPO Settlement Platform (FINI) to be launched in October HKEX announced on 28 June of the launch of FINI, its innovative IPO settlement platform, in October this year, which significantly shortened the time between the pricing of an IPO and the trading of shares from five business days (T+5) to two business days (T+2). HKEX Chief Executive Officer Nicolas Aguzin said: “By digitalising, streamlining and modernising IPO settlement workflows, FINI will shorten the time between IPO pricing and the start of trading, enhancing market efficiency and strengthening the competitiveness and attractiveness of Hong Kong’s IPO market.” Following the successful completion of the FINI External User Testing earlier in June, HKEX will arrange market practice sessions and market rehearsals in July and August, to simulate interactive, end-to-end IPO settlement operations under FINI, paving the way for full migration to FINI in October. The new platform will also introduce a new public offer pre-funding model to help alleviate the scale of funds that are locked up in over-subscribed IPOs. 4. HK Aiming a target to invite 200 family offices domiciled in Hong Kong by the end of 2025 The Financial Secretary, Paul Chan, delivered a speech on 12 June in the launch of a family office network, proclaiming a plan to develp Hong Kong as a premier hub for family offices and a target of 200 family offices to be established by the end of 2025 has been on schedule. On the government side, legislations have been passed to enhance the competitiveness of the tax system for family offices, and with concerted efforts from various regulatory bodies like the SFC and HKMA, to fuel the momentum for accelerating the development . SIGNIFICANCE: Having recovered for the 2019 social movement and the global epidemic of COVID-19, the HKSAR government has been endeavoring to start off the engine for moulding Hong Kong not only as international financial centre as it is used to be, but also a pioneer around the world for the nascent virtual asset licensing regime and a premier hub for the growth of family offices. 5. 130 Sustainability-Linked Bonds and ESG ratings of hundreds of listed companies displayed on the STAGE Mr Wilfred Yiu, Co-Chief Operating Officer & Head of Equities of the HKEX stated that up to end of May this year, the Sustainable & Green Exchange (STAGE) has displayed more than 130 Sustainability-Linked Bonds and ESG ratings of hundreds of listed companies in Hong Kong. Mr Yiu also said in a forum that the number of ESG ETFS listed on HK continued to grow, and there was a total of 11 ESG ETF amounting in market capitalization of HKD 2.5 billion dollars, with turnover approaching HKD 6 million dollars. Beside the First Carbon Futures ETF listed last year, through the Stock Connect came another new China A Low Carbon Index ETF and the first Greater Bay Area Climate Transition ETF listed in Hong Kong in March this year. Mr Yiu further pointed out that the Exchange’s ESG reporting requirements had incorporated certain key recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), proposing for the issuers to prepare for the mandatory TCFD-aligned climate-related disclosures by 2025. 6. The SFC Annual Report 2022-23 The SFC published its Annual Report 2022-23 on 21 June 2023, which sets out its achievements in the past year as well as its vision for nurturing high-quality market growth and upholding world-class regulation to advance Hong Kong’s position as a leading international financial centre. Some key achievements included: the introduction of Swap Connect; launch of a new lsiting regime for specialist technology companies with limited or no revenue or track record; the investor identification regime for Hong Kong (HKIDR); the Hong Kong Dollar-Renminbi (RMB) Dual Counter Model for the secondary market trading of a first batch of stocks; the regulatory requirements for the new licensing regime for virtual asset trading platforms effective in June; the proposed risk management guidelines for licensed persons dealing in futures Mr Tim Lui, Chairman of SFC, said, “ We are committed to strengthening market resilience and integrity and expanding the breadth and depth of our financial markets as a premier gateway to Mainland China .” The Chief Executive Officer, Ms Julia Leung, also said, “ We strive to promote sustainable and responsible development of our financial markets whilst safeguarding investor interests and managing market risks through our robust regulation, vigilant supervision and resolute enforcement action. ” SIGNIFICANCE: The transition from 2022 to 2023 was fraught with many challenging changes lauched by the regulatory bodies and its determination to crack down on the investment fraud and social media ramp and dump scams which were detrimental to the integrity of the financial market Hong Kong has strived to uphold. Nowadays, maintaining in compliance is not merely an obligation to be fulfilled, but more of a challenge to be encountered amid such avalanche of regulatory innovations formulated and launched by the HKSAR government while orchestrating a regulatory landscape to accomodate the latest developments in the international financial markets. ENFORCEMENT NEWS 7. SFC banned Xie Yangxiong for life for fraudulence and misrepresentation The SFC had banned Mr Xie Yangxiong, a director of Wansom Asset Management (Hong Kong) Limited (WAML) and Wansom Securities (Hong Kong) Limited (WSL), from the industry for life. It was found in the SFC investigation that Xie, who had access and control of bank accounts of WAML and WSL, was providing false information of both firms to SFC in support of their license applications in July and August 2018. In the case, Xie deliberately made deposits in the bank accounts of WAML and WSL, and then withdrew the same amount afterwards. With the withdrawn funds into consideration, the liquid capital condition of both WAML and WSL would fail to meet the regulatory requirement for their licenses to be granted. Further that Xie also failed to ensure that WAML and WSL should have notified the SFC of their liquid capital deficits within one business day of their liquid capital falling below the required level. The SFC was of the view that the misconduct of WAML and WSL was the direct result of Xie’s consent or connivance, and his conduct cast serious doubt on his fitness and properness to be a “regulated person”! SIGNIFICANCE: Given the fact that Xie was also the sole owner of the entity which wholly owned WAML and WSL. Although Xie was not a licensed person under the Securities and Futures Ordinance (SFO), he came within the definition of a “regulated person” under section 194(7)(c) of the SFO which includes a person who is or at the relevant time was involved in the management of the business of a licensed corporation. 8. Taiping Securities (HK) Co Limited was fined $1.3 million for internal control failures over employee dealings The SFC had reprimanded and fined Taiping Securities (HK) Co Limited (TSCL) $1.3 million for internal control failings in relation to employee dealings between 1 January 2016 and 30 November 2018. It was found in the investigation that TSCL failed to put in place adequate and effective internal controls over monitoring of employee dealings, and the senior management, compliance department and responsible officers (RO) did not have a clear understanding of their roles and duties as well. The SFC also found that TSCL failed to communicate its personal dealing policy applicable during the relevant period to all employees and ensure their compliance with it. 9. Four people charged following SFC and Police joint operation against securities fraud and illegal short selling Four suspects appeared at the Eastern Magistracy on 23 June 2023 charged with offences of fraud with alternative charge of illegal short selling following an earlier joint operation of the SFC and the Police against fraudulent activities in securities transactions and illegal short selling. Suspicious trading activities during an intensive investigation of suspected ramp-and-dump activities were discovered which were found to involve suspected money laundering and other fraudulent activities, the case was referred to the Police. 10. SFC obtained disqualification orders against former directors of National Agricultural Holdings Limited The SFC had obtained disqualification orders in the Court of First Instance against a former executive director Mr Liu Yong, and two former independent non-executive directors, Ms Kathy Chiu Kam Hing and Mr William Fan Chung Yue of National Agricultural Holdings Limited (NAH). Liu was disqualified for three years while Chiu and Fan for 20 months from being any director, liquidator, or receiver or manager of any corporation in Hong Kong including NAH or any of its subsidiaries and affiliates. The Court proceedings followed the SFC’s investigations into allegations of a series of misconduct orchestrated by NAH’s controlling shareholder Parko (Hong Kong) Limited (Parko), the former chairman Mr Chen Li-Jun and three other senior officers of NAH (Chen and others) from 2015 to 2017. The orders were made having regard to the findings that Liu, Chiu and Fan had neglected or omitted to identify or rectify the misconduct of Chen and others. They also failed to raise concerns, queries or seek necessary information in relation to the significant and questionable transactions discovered in SFC’s investigation as above. For more details, please click on the title of the topic above. ================================= ~ Make It Right Today, Better Tomorrow ~ ================================= The Newsletter is for general information purpose only and is not intended to constitute legal or other professional advice. For enquiries, please email to support@complianceone.hk or call us at (852) 39550277 . Unit 1104, 11/F, 299QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong Tel: (852) 39550277 www.complianceone.hk To unsubscribe, please simply reply with “ I don’t like to know more about Compliance ”.