Regulatory Alerts2013-02-05
Added · Updated
Circular Issued by the Securities and Futures Commission on Guarding against Risk of Client Asset Misappropriation
The Securities and Futures Commission issued a circular requiring licensed corporations to implement robust internal controls to protect operations and clients from financial losses caused by theft, fraud, and dishonest acts. Registered institutions are mandated to maintain vigilance in supervising their operations and personnel to effectively guard against the risk of misappropriating client assets. These measures ensure strict compliance with the regulatory standards outlined in the circular to prevent financial harm.
Our Ref: B1/15C G16/1C
5 February 2013 The Chief Executive All Registered Institutions Dear Sir / Madam, Circular Issued by the Securities and Futures Commission (SFC) on Guarding against Risk of Client Asset Misappropriation I am writing to draw your attention to the attached circular issued by the SFC, which reminds licensed corporations to put in place internal controls to protect their operations and their clients from financial loss arising from theft, fraud, and other dishonest acts. The circular also highlights some control areas that warrant special attention. Registered Institutions should stay vigilant in the supervision of their operations and personnel in order to guard against the risk of misappropriation of client assets, and ensure compliance with the standards as set out in the SFC’s circular. Yours faithfully, Meena Datwani Executive Director (Banking Conduct) Encl. c.c. Securities and Futures Commission (Attn: Mr Stephen Po, Senior Director of Intermediaries Supervision)
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