Regulatory Alerts2011-11-28
Added · Updated
SFC Circular on Provision of Services for Transactions in Other Jurisdictions
The Securities and Futures Commission requires licensed corporations to establish policies for managing risks when providing services for transactions in other jurisdictions through overseas counterparties. Firms must evaluate counterparty creditworthiness and capabilities, monitor market conditions, and avoid placing excessive client money with overseas entities. Additionally, licensed corporations must disclose specific risks regarding diminished investor protection and asset safety outside Hong Kong, while proactively addressing client enquiries and providing updated information on overseas transactions.
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