- In FAQ section on Loan Originating Qualifying Investor AIF questions ID 1079, 1081,
1117, 1118 deleted, question ID 1119 is amended, new question, ID 1128, included.
- 1128 states that a QIAIF can’t invest in derivatives, other than for hedging purposes.
- Fined Deutsche Bank and its wholly-owned subsidiary Deutsche Securities Asia.
- Re short position reports, unlicensed activities and segregation of client money.
- Breach of reporting requirements, led to a failure to report 792 short positions.
- Short position at close of trading on HKEX, must be reported in set timeframe.
- Published 49 research reports on futures contracts, without Type 5 registration.
- Firm that distribute research on futures is required to be registered or licensed
with the SFC to carry on Type 5 advising on futures contracts regulated activity.
- Did not segregate client monies in 117 incidents between January 2010 and 2014.
- Required to pay client money into a segregated account, within day of receipt.
- Under the resolution, SFC publicly reprimanded and fined bank total of $8.3mn.
- SFC took into account self-reporting and cooperation in resolving SFC concerns.
- Remedial measures to strengthen internal controls, to avoid similar recurrence.
- Undertaking to provide report prepared by internal audit team after 12 months.
Solutions Atlantic has released coverage for Serbia extending its Regulatory Reporting System Rules Library to 96 jurisdictions. This release comes on the heels of Serbia being added to Rulefinder, the source for regulatory intelligence provided by aosphere LLP. Investors in Serbia will find themselves subject to major shareholding disclosure obligations as well as sensitive sector limits.
- On 2 March 2018, UK FCA issued a statement on plan to implement ESMA LEI relief.
- Amendment to LEI validation rule to be implemented in MDP on 10 March 2018, and
firms to (re)submit from 12 March reports where trade date precedes LEI registration.
On 5 March 2018, HK SFC publicly criticized Nomura on takeover research.
- Criticized Nomura International (HK) Limited, for breaches of HK takeover code.
- Also cited Lee Yuen Yee, whilst acting as financial adviser to West China Cement.
- Lee is a licensed representative of Nomura Hong Kong, for the regulated activity.
- Work done in relation to possible mandatory offer for the shares of the company.
- Nomura fell within the definition of “associate” of offeree company, for purposes
of HK takeovers code on engagement as West China financial adviser November 2015.
- Bank did not comply with limits on issuance and distribution of research reports.
- On publishing five credit commentaries, and three weekly wraps, on West China.
- Research contained profit forecasts, which were not reported by Lee as required.
- Note 4 to Rule 8.1 of takeovers code provides that a financial adviser to offeree
company should stop issuing research reports on it, except if SFC prior consent.
- Any research reports with profit forecasts must comply with reporting per code.
- Regulator cited public criticism of Nomura HK for their breach of takeovers code.
- In determining sanction, SFC took account of Nomura HK and Lee’s cooperation.
- As well as self-reporting of the breach, and the remedial measures implemented.
On 26 February 2018, CSSF updated FAQ on key investor information documents, KIID.
- On which regulatory documents are at minimum to be considered for drafting KIID.
- On which procedure must be followed to file the final version of KIID with the CSSF.
- On procedure to be followed when submitting a draft of the KIID to the CSSF in the
context of a request for authorization from CSSF of UCITS or compartment thereof.
- On who bears responsibility for the content of the KIIDs, which are made available.
On 22 February 2018, EP ECON issued scrutiny paper on evaluation of short selling.
- Covered ESMA advice of 21 December 2017, evaluation of Short Selling Regulation.
- Briefing provides overview of three building blocks of the final technical advice.
- Market making activities exemption, the short term restriction on short selling
in case of a significant decline in prices under Article 23 SSR (short-term bans).
- Transparency of net short positions (NSP) and related reporting, and disclosure.
- ESMA executive director Verena Ross spoke at meeting to describe the 3 areas.
On 21 February, FINFSA fined Danko Koncar, obliged it bid for Afarak.
- FINFSA obliged Danko Koncar to launch takeover bid for Afarak Group Plc shares.
- FINFSA considered Koncar acted in concert with Hino Resources Co. Ltd, Finaline
Business Limited and his spouse Jelena Manojlovic, to exercise control in Afarak.
- Violated provision of the Securities Markets Act protecting minority shareholders.
- Voting rights of persons acting in concert have exceeded bid obligation threshold.
- Conduct was long-standing, systematic, investors unaware, voting rights 41.56%.
- Imposed running conditional fine to enforce the obligations stated in the decision.
- Imposed running conditional fine, decision not yet legally binding, right of appeal.
- Bid consideration at least the highest price paid by the party under the obligation
during six months preceding obligation, minimum share price for bid to be €2.50.
- Koncar must publish mandatory bid, within month of service of FIN-FSA decision.
- Not yet served with decision as required by law and the period is not yet running.
- On 22 February, Nasdaq issued notice, Afarak shares moved to observation segment.
On 19 February, SFI decided guideline, penalties late insider reporting.
- New guidelines, penalties, violation of transparency reporting rules, MAR, Art 19.
- Aligned, persons discharging managerial responsibilities (PDMR), Act 2016:1306.
- Not relevant for violations prior to 1 February 2017, the earlier legislation shall apply.