Experience

Timothy Loh LLP Advised PRC Based Asset Manager with over US$15 Billion of Assets Under Management on SFC Inspection

Our SFC Inspections & Audits Practice and our Hedge Funds Practice guided the Hong Kong offices of a PRC based asset management firm on an SFC inspection. The firm manages overs US$15 billion of assets under management. The Hong Kong office is SFC licensed.

Our regulatory lawyers were retained following concerns raised prior to the commencement of the on-site phase of the SFC inspection of possible breaches of requirements relating to the onboarding of clients. Our scope of work included:

  • advising on the management of the flow of documents in response to SFC requisitions so as to ensure sufficient time to consider and present documents, the presentation of documents so requested and the applicable regulatory requirements underlying possible concerns on the face of documents, all with a view to minimizing the risk of the SFC raising concerns

  • providing guidance on the opening meeting at the start of the on-site visit with a view to pre-empting any concerns the SFC may have

  • providing guidance on communications with the SFC following the on-site visit, including advice on responding to particular concerns raised by the SFC

Our advice covered:

  • know-your-client ("KYC"), suitability professional investor classification and other client on-boarding requirements under the Code of Conduct for Persons Licensed by the SFC ("SFC Code of Conduct")

  • client due diligence and record keeping requirements under he Guidelines on Anti-Money Laundering and Counter-Financing of Terrorism ("AML Guidelines")

  • prospectus exemption provisions under the Companies (Winding-up and Miscellaneous Provisions) Ordinance ("CWUMPO") and professional investor exemption under the Securities and Futures Ordinance ("SFO")

Despite the concerns initially raised by the client, there was ultimately no finding by the SFC of any material breach of regulatory requirements.

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