Asia Newsletter | February 2024

NEWSLETTER: As we welcome the year of the dragon, our teams in Hong Kong and Singapore are busier than ever, and enjoying getting to know our new colleagues at Ocorian. It was no surprise this month to see the MAS refocus on outsourcing requirements.

The new two tier approach – with a greater supervisory focus on banks – is welcome news for fund managers, financial advisors and other non-bank FIs. There are still changes to the outsourcing guidelines to consider, which we summarise in our article.

The MAS has also issued proposals to enhance and clarify its investigative powers, paving the way for a new Bill: Financial Institutions (Miscellaneous Amendments), known as the FIMA Bill. Although intended to harmonise existing powers across various acts which already come under the Authority, it’s worth taking a look at the detail to understand what those powers are and how they could affect you.

The theme of clarification follows the MAS’s earlier update of guidelines on licensing, registration and conduct of business which gave colour to its expectations of fund management companies. The Authority is clearly committed to paper the increased licensing expectations that we’ve witnessed over the last year or two when helping our clients to get licensed

In Hong Kong, the year kicked off with news of another fine for breaches to its Financial Resources Rules – a stark reminder of the importance of managing your liquid capital and indicative of the SFC’s increased FRR monitoring. Finally, a reminder for Hong Kong firms with financial years ending on or after 30 November 2023 not to overlook the updated BRMQ.

Rebecca Thorpe
Chief Executive Officer

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