Regulatory Alerts2017-08-02
Added · Updated
SFC Circular on Irregularities and Deficiencies in Managing Private Funds and Discretionary Accounts
The Securities and Futures Commission issued this circular to address regulatory concerns regarding irregular features in private funds and discretionary accounts with concentrated, illiquid, and interconnected investments. The regulator requires asset managers to strengthen supervisory and compliance programmes, critically examine client transactions to prevent market misconduct, and report suspected breaches of market misconduct provisions. Additionally, firms must maintain effective risk management policies to handle liquidity and concentration risks while ensuring fair treatment of all clients and avoiding conflicts of interest.
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