A licensed corporation, registered institution, licensed individual, substantial shareholder of a licensed corporation, corporate licence applicant or an individual licence applicant can apply to the SFC to have certain sections of the Securities and Futures Ordinance (SFO) or any provision of rules made by the SFC modified or waived under the SFO according to section 134 of the SFO ...
On 10 May 2007, the China Banking Regulatory Commission (CBRC) issued its "Notice on the Adjustments to the Overseas Investment Scope of Overseas Wealth Management Business of Commercial Banks on behalf of their Clients". This Notice widens the investment scope permitted under the Qualified Domestic Institutional Investors scheme (QDII) applicable to commercial banks (including Chinese banks and approved foreign banks in China) ...
The SFC recently appointed Mr. Mark Steward from the Australian Securities and Investment Commission (ASIC) as Executive Director of Enforcement. While enforcement initiatives of the SFC under his new leadership are still evolving, reference to the past record of ASIC’s enforcement may provide some hints ...
Section 135 of the Securities and Futures Ordinance (SFO) sets out various events to be reported by licensed persons to the SFC and by registered institutions to the HKMA and gives timelines for making these filings ...
It was gazetted on 14 May 2007 that the Employment (Amendment) Ordinance 2007 (the "Amendment Ordinance") will become effective on 13 July 2007 (except section 16 in relation to the requirement to keep wage and employment records, which will become effective on 13 January 2008).For details of the Amendment Ordinance, please see our HR & Pensions Newsletter Issue 2007.1 regarding the Employment (Amendment) Bill 2006 via this link: http://www.deacons.com ...
The SFC's feedback on their recent round of inspections of Investment Advisers (IAs) was shared with members of the Institute of Financial Planners of Hong Kong on 8 May 2007. The SFC reported that the main issues they identified were: insufficient knowledge of clients and lack of justification to illustrate suitability of advice ...
In our November 2006 Asia IP Bulletin, we reported on a ground-breaking agreement (the "Agreement") signed by the Hong Kong and Mainland Chinese Governments, under which they agreed to recognise and enforce judgments made in each others courts. The Agreement followed four years of discussion and legislative changes are now underway in Hong Kong to implement the Agreement ...
The Court of Final Appeal recently made a ruling in Poon Chau Nam v. Yim Siu Cheung t/a Yat Cheung Air-conditioning & Electric Co. casting light on determining whether a worker should be treated as an employee or an independent contractor under the Employees Compensation Ordinance ("ECO").This is an appeal case from the District Court and the Court of Appeal. The appellant worker suffered personal injury in a work-related accident at a building ...
First conviction on offence to make false or misleading statement to claim MPF benefitsAccording to section 43E of the Mandatory Provident Fund Schemes Ordinance ("MPFSO"), a person who, in any document given to the MPFA, an approved trustee or an auditor of an approved trustee or of a registered scheme in connection with the MPFSO, makes a statement that the person knows to be false or misleading in a material respect, or recklessly makes a statement which is false or mislea
The Labour Law of the People's Republic of China ("PRC") came into effect on 1 January 1995. The PRC Labour Law sets out the basic legal framework for the administration of employment/labour relationships and is applicable to all labour/employment contracts entered into between a PRC entity (including any foreign invested company) as employer and an individual as employee rendering services in the PRC ...
The Employment (Amendment) Bill 2006 (the "Bill") was gazetted on 8 December 2006 and was read in the Legislation Council for the first time on 20 December 2006. The Bill proposes that commission be expressly included in the calculation of certain statutory payments under the Employment Ordinance (“EO”) ...
A reputation for counterfeiting, poor quality control, ever-changing and inconsistent application of regulations and the challenges of ensuring that development does not unduly prejudice the welfare of the general population - this description of China’s pharmaceutical industry is representative of much that is good, bad and challenging in China’s recent regulatory and economic development ...
Guangzhou, in its eleventh five-year plan for the development of foreign trade, made the commitment to encourage foreign investors to set up headquarters and regional headquarters in its municipal area in order to upgrade the quality of foreign investments in Guangzhou ...
"Outsourcing" is defined as an event in which the regulated financial services firm (the "outsourcing entity"), contracts with a service provider to perform any aspect of the outsourcing entity's regulated or unregulated functions that could otherwise be undertaken by the entity itself. The service provider may be a related party within a corporate group, or an unrelated third party entity ...
The amendments to the Mandatory Provident Fund Schemes (General) Regulation (General Regulation) finally came into effect on 1 December 2006. The amendments mainly related to the permissible investments of MPF constituent funds and approved pooled investment funds (APIFs) ...
A Chinese commercial bank recently launched an investment product under the Qualified Domestic Institutional Investors scheme (QDII) which takes in Renminbi funds from mainland investors and invests in offshore equity funds, fixed income instruments and money market products denominated in foreign currencies. This is an important breakthrough as previously QDII products from banks only invested in fixed income instruments ...
The China Insurance Regulatory Commission (CIRC) has introduced the draft Regulatory Measures on Offshore Investment of Insurance Assets (Draft Measures) which replace the provisional rules issued in 2004 ...
In our July 2006 legal update, we reported on a ground-breaking agreement (Agreement) signed by the Hong Kong and Mainland China Governments, under which they agreed to recognise and enforce judgments made in each others courts. Legislative changes are now underway in Hong Kong in order to implement the Agreement ...
Another victim of the economic boom in Hong Kong is the Cine-Art Cinema which was officially closed in November 2006. The cinema was the only venue on Hong Kong Island that programmed independent, arthouse films. The only other arthouse cinema is Broadway Cinemateque in Kowloon. Due to rising property prices and a declining audience for several years, Cine-Art had no choice but to close ...
On 14 July 2006, the Hong Kong and Mainland Chinese Governments signed a ground-breaking agreement entitled “An Arrangement on Reciprocal Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region pursuant to Choice of Court Agreements between Parties Concerned” (the “Arrangement”), under which they agreed to recognise and enforce judgments made in each others courts ...
The December 2006 SFC Enforcement Reporter provides a timely reminder that carrying out regulated activities without a licence is a highly risky endeavour in Hong Kong. This caps off a year where there were a number of significant enforcement actions for unlicensed dealing activities ...
In a speech on 20 November 2006, Mrs Alexa Lam, the SFC's Executive Director of Intermediaries and Investment Products, announced that the SFC will continue its focus on ensuring that financial products are not mis-sold in Hong Kong and that investors are provided with appropriate advice from their investment advisers (IAs) ...
For the first time in Hong Kong, during the first half of 2006, civil suits were filed against Internet users for illegally uploading, downloading and sharing pirated music on the Internet using the WinMX file-sharing software ...
The war between new DVD technologies, Blu-ray and HD DVD are reminiscent of the battle between the VHS and Betamax videocassette formats. Who will be the winner in this war is yet to be seen as these formats are now becoming available in retail outlets. Supported by Sony, Blu-ray is the next generation optical disc which was developed to store large amounts of data and to enable recording, rewriting and playback of high definition (HD) video ...
The China Insurance Regulatory Commission (CIRC) recently issued draft rules namely, Regulatory Measures on Offshore Investment of Insurance Assets, governing China's insurance companies' investment in their assets offshore and the appointment of foreign investment managers ...
