Hong Kong Securities and Futures Commission: Will prioritize cracking down on improper practices in the asset management industry

Golden Finance reported that the Hong Kong Securities and Futures Commission issued a letter pointing out that in the process of supervising licensed corporations engaged in managing private funds and entrusted accounts, multiple deficiencies and non-compliant practices were found. Many cases involve serious misconduct, posing a significant threat to the interests of investors and undermining public confidence in the integrity and stability of the Hong Kong market as an international asset management center. The cases described in the letter involve violations in multiple areas, including conflicts of interest, Risk Management, investments within authorized scope, provision of information to investors, as well as valuation methods. It also sets out the current responsibilities of asset management companies in these circumstances. The Securities and Futures Commission of Hong Kong has pointed out that asset management companies should review the follow-up issues mentioned in the letter and take corresponding measures to correct any identified deficiencies.