Hong Kong Law

On 10 May 2017, the Takeovers Panel ruled that a waiver of the general offer obligation (Whitewash Waiver) should be granted, subject to conditions, in relation to a share buy-back offer announced by TVB.

Anti-Money Laundering and Counter-Terrorist Financing Ordinance will require designated non-financial businesses and professions to observe statutory customer due diligence and record-keeping requirements

BVI’s Beneficial Ownership Secure Search System Act 2017 came into force on 30 June 2017 to establish a search system facilitating the retrieval of beneficial owner information for corporate & legal entities

The SFC issued a circular providing guidance for existing licensed corporations and individuals seeking to be licensed for Type 9 regulated activity (asset management) under the Securities and Futures Ordinance

The SFC has issued a circular on responsible officers and substantial shareholders, stating that it is not acceptable to hire ROs in name only; they must in fact supervise the licensed corporation’s business.

The SEHK has published a Consultation Paper on the Review of the Growth Enterprise Market and Changes to the GEM and Main Board Listing Rules. The SEHK proposes to impose higher entry criteria for both boards.

The SFC issued a statement setting out factors to be considered when reviewing the proposed listing of infrastructure project companies in Hong Kong in order to maintain the overall quality of the market.

The HKEx published its New Board Concept Paper setting out proposals for the establishment of a New Board, separate from the Main Board and the GEM, to open Hong Kong’s capital markets to New Economy Companies.

The People’s Bank of China and the Hong Kong Monetary Authority made a joint announcement approving the establishment of mutual access between the Hong Kong bond market and Mainland China’s bond market.

In its newsletter, Enforcement Reporter, the SFC discussed director and senior executive liabilities and senior management accountability in listed companies, particularly in relation to fraud and misfeasance.

The Supplemental Circular on Leveraged and Inverse Products dated 23 December 2016 details the requirements under which the SFC would consider authorising leveraged and inverse products for public offering.

Those who pay for an existing licensed corporation as a “backdoor licence” may not avoid the responsibilities and liabilities. Anyone involved in the management of licensed corporations is liable for breaches.