APAC Monthly Private Wealth Legal Developments - February 2022

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APAC Monthly Private Wealth Legal Developments - February 2022

CFO Tech Outlook | Friday, March 04, 2022

Every month, 10 Asian jurisdictions for legal developments concerning trust and estate planning which are of interest to the private wealth industry, and provide a succinct summary in a table format is conducted.

Every month, a study of 10 Asian jurisdictions for legal developments in trust and estate planning that are relevant to the private wealth industry and present a concise overview in the table style is conducted. Hong Kong, Singapore, China, Taiwan, Japan, India, Malaysia, Indonesia, Thailand, and the Philippines are among the jurisdictions covered in the update.

A circular on trading-related arrangements for special purpose acquisition firms was published by the Stock Exchange of Hong Kong. The circular reminds exchange participants that SPAC shares and SPAC warrants are traded separately from the date of a SPAC's initial listing until a de-SPAC transaction.The circular also mentions that only professional investors are permitted to subscribe for and/or buy SPAC shares and SPAC warrants listed on the Main Board, and that only SPAC exchange participants registered with the SEHK are permitted to conduct SPAC share and SPAC warrant trading. SPAC shares and warrants will be added as Volatility Control Mechanism Securities with multiple triggering levels and price bands throughout the cooling-off period to limit the risk of price volatility. The thresholds may be changed regularly.

The Securities and Futures Commission and the Hong Kong Monetary Authority jointly issued a circular on intermediaries' virtual asset-related activities, which replaced the circular on VA fund distribution issued on November 1, 2018. The circular focuses on the distribution of virtual asset-related products as well as virtual asset trading and consulting services. In particular, intermediaries distributing VA-related products that are considered complex products should adhere to the SFC's requirements for the sale of complex products, which include ensuring the suitability of VA-related products regardless of whether or not a solicitation or recommendation has been made.

The HKMA released a circular to provide regulatory guidelines to authorised institutions on what they should look out for when dealing with VAs and virtual asset service providers. The HKMA's prudential oversight, anti-money laundering and counter-terrorist financing risk, and investor protection are all covered in the circular. Because AIs' businesses may interact with VAs and VASPs through proprietary investments or the provision of banking and investment services to customers, which can pose a variety of risks, the circular states that the HKMA supervises AIs' VA activities using a risk-based approach based on the principle of same risk, same regulation.


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