Compliance & Regulatory Alerts, Updates and Insights...

Here are the topics discussed:

• ASIC Urges AFS Licensees to Correct Records on the Financial Advisers Register
• Court Convicts Sun Weiyeh for Likely Defrauding Investors
• Memorandum of Cooperation between FSA and OSC
• Progress in Common Data Platform and Future Plans
• Disciplinary Action Against DBS Bank (Hong Kong) Limited
• Enhanced Transparency for Retail Investors Under New MiCA Rules
• ESMA Proposes Measures to Bolster Corporate Sustainability Reporting
• SEC Alleges Financial Institution and Former CEO Misled Investors About Compliance Program

ASIC Urges AFS Licensees to Correct Records on the Financial Advisers Register

ASIC is calling for AFS licensees to ensure the accuracy of their records on the Financial Advisers Register. Spot checks revealed errors in qualifications and training courses marked as 'approved,' which often were not. Licensees must verify and update details, including qualifications, tax advice services, business address, and phone number.

From August 1, 2024, ASIC will enforce compliance to ensure correct qualification records. Public display of 'approved' qualifications has been removed to reduce confusion and protect consumers.

For more details, visit the ASIC media release.

Court Convicts Sun Weiyeh for Likely Defrauding Investors

A court has convicted and sentenced Mr. Sun Weiyeh, a former fund manager and director of One Asia Investment Partners (OAIP), to six months in prison for actions likely to defraud investors. This conviction, under the Securities and Futures Act (SFA), is for fraudulent or deceptive conduct related to over-the-counter (OTC) bond trading.

For further details, visit the MAS enforcement action page.

Memorandum of Cooperation between FSA and OSC

The Financial Services Agency (FSA) of Japan and the Ontario Securities Commission (OSC) signed a Memorandum of Cooperation (MoC). This agreement focuses on the supervision and oversight of central counterparties (CCPs) regulated by both authorities. The MoC includes provisions for supervisory cooperation, information sharing upon request, and guidelines on the use and confidentiality of shared information.

For more details, visit the FSA news release.

Progress in Common Data Platform and Future Plans

The Financial Services Agency (FSA) and the Bank of Japan (BOJ) have been advancing data integration to improve monitoring capabilities and reduce the burden on financial institutions. In fiscal 2023, they initiated phased data collection to establish a new framework (common data platform). A summary of their progress and future steps has been published.

For detailed information, visit the FSA news release.

Disciplinary Action Against DBS Bank (Hong Kong) Limited

The Hong Kong Monetary Authority (HKMA) has imposed a HK$10,000,000 penalty on DBS Bank (Hong Kong) Limited (DBSHK) for violations of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). The investigation revealed deficiencies in DBSHK’s monitoring of business relationships, enhanced due diligence in high-risk situations, and record-keeping from April 2012 to April 2019. The decision considered the seriousness of the findings, the need for deterrence, and DBSHK's remedial actions and cooperation.

For more details, visit the HKMA news release.

Enhanced Transparency for Retail Investors Under New MiCA Rules

ESMA, the EU's financial markets regulator, has released its second Final Report under the Markets in Crypto-Assets Regulation (MiCA). This report includes eight draft technical standards intended to enhance transparency for retail investors, clarify technical disclosure and record-keeping requirements for providers, and establish data standards to aid National Competent Authorities (NCAs) in supervision.

For more details, visit the ESMA press news.

ESMA Proposes Measures to Bolster Corporate Sustainability Reporting

ESMA, the EU's financial markets regulator and supervisor, has issued a Final Report on the Guidelines for Enforcement of Sustainability Information (GLESI) and a Public Statement on the initial implementation of the European Sustainability Reporting Standards (ESRS). GLESI aims to promote convergence in supervisory practices for sustainability reporting. Efforts include enhancing clarity in disclosing sustainability information for investor comprehension, potentially utilizing sustainability labels/categories, simplifying industry processes to reduce compliance burdens, and improving consistency among EU National Authorities through enhanced cooperation and convergence in enforcement.

For more details, visit the ESMA press news.

SEC Alleges Financial Institution and Former CEO Misled Investors About Compliance Program

The Securities and Exchange Commission has charged a financial institution for allegedly misleading investors regarding the effectiveness of its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program and its oversight of crypto customers. Additionally, the company is accused of misleading investors about losses stemming from expected securities sales following the collapse of FTX.

For more details, visit the SEC press releases.

Disclaimer

The information provided in this discussion is for informational purposes only and does not constitute legal, financial, or professional advice. Please refer to the full regulatory texts and guidelines for detailed information and consult with a qualified professional for specific advice tailored to your situation.