Clifford Chance
Hong Kong proposes changes to their licensing regime as the region's OTC derivatives reform continues to develop
10 September 2013
The Hong Kong Monetary Authority ("HKMA") and the Securities and Futures
Commission ("SFC") have published their joint supplemental consultation
conclusions (the "Conclusions") on the proposed scope of two new as well as
two expanded regulated activities together with their proposal for the regulatory
oversight of Systemically Important Participants ("SIPs").
The modifications to the existing licensing regime for regulated activities are
expected to come into effect in early 2014, and will impact licensed corporations
and banks as well as unlicensed entities dealing in or advising on OTC
derivatives. Failure to comply with the new licensing regime may result in
serious consequences for both the entity involved and individuals responsible
for managing the entity. Annex A of this briefing provides examples of how the
amendments to the licensing regime will affect market participants.
