On 9 October 2024, the Securities and Futures Commission (“SFC”) issued a circular highlighting deficiencies and substandard conduct identified during its supervision of asset managers engaged in managing private funds and discretionary accounts.
In the circular, the SFC expressed concerns about egregious misconduct from and a lack of integrity of certain asset managers. It stated that these infractions could seriously jeopardise investor interests and confidence while putting at risk Hong Kong’s asset management markets and the city’s status as an international wealth management centre.
To combat asset management misconduct, the SFC declared they will conduct on-site inspections to detect any breaches to the SFC Code of Conduct, Fund Manager Code of Conduct and Management, Supervision and Internal Control Guidelines for Persons Licensed by or registered with the Securities and Futures Commission and impose harsher penalties against offenders.
