Regulatory Alerts2017-09-19
Added · Updated
SFC Circular on Common Instances of Non-Compliance in Managing Funds and Discretionary Accounts
The Securities and Futures Commission issued this circular to highlight common non-compliance instances identified during inspections of asset managers managing funds and discretionary accounts. The document details deficiencies across nine key areas, including inappropriate receipt of cash rebates, failure to ensure suitability and liquidity risk management, and inadequate controls for fair valuation, best execution, and client asset protection. Asset managers are urged to review and enhance their internal controls to meet regulatory expectations, with the SFC warning that enforcement actions may be taken against those failing to comply.
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