Hong Kong-regulated Entities Required to Participate in the Financial Dispute Resolution Scheme; Changes to the Code of Conduct Will Require Regulated Entities to Report Suspected Market Misconduct or Offenses by Clients
Hong Kong's Securities and Futures Commission (the Commission) has revised the Code of Conduct once more. The Code of Conduct applies to persons licensed by or registered with the Commission.
This batch of amendments covers a wide variety of areas, some of which have been the subject of controversy during the consultation process.
As of June 19, 2012, entities licensed by or registered with the Commission (other than credit rating agencies) have been required to participate in the dispute settlement process administered by the Financial Dispute Resolution Centre Limited. The Hong Kong Monetary Authority (the HKMA) has imposed a similar requirement on Hong Kong-licensed banks and registered deposit-taking companies.
From December 1, 2012, a number of new obligations will be imposed by the Commission in areas such as the retention of telephone recordings, the use of cell phones for client orders, accepting orders placed for client accounts by other parties (including client employees), permitting employees to act as expert witnesses for regulators and, perhaps most controversially, notification of suspected client misconduct.
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