Hong Kong Announced a Proposal to Introduce a New Investor Identification Regime and a Transaction Reporting Regime for Securities Trading
ISSUING AUTHORITY:
Securities and Futures Commission of Hong Kong
DATE OF ISSUANCE:
December 4, 2020
EFFECTIVE DATE:
Please see below
On 4 December 2020, the Securities and Futures Commission of Hong Kong (“SFC”) issued a Consultation Paper proposing an investor identification regime for the securities market at the trading level (the “Proposed Investor Identification Regime”) and a transaction reporting regime for transactions which are not recorded by the Stock Exchange of Hong Kong (“SEHK”) as on-exchange orders nor required to be reported as off-exchange trades (the “Proposed Transaction Reporting Regime”).
Under the Proposed Investor Identification Regime, when an order is submitted or arranged to be submitted to SEHK’s trading for execution, or where an off-exchange trade is reported to SEHK according to its rules for securities listed and/or traded on SEHK, the SFC-licensed corporation or registered institution submitting the order or reporting the trade would be required to include a unique identification code assigned to the relevant client, i.e. a “Broker-to-Client Assigned Number” (“BCAN”). In the meantime, up-to-date client identification data (“CID”) collected from each client has to be submitted to a central repository to be maintained by SEHK.
Under the Proposed Transaction Reporting Regime, where there is a transfer of securities listed on SEHK that is not recorded as on-exchange orders nor required to be reported to SEHK as off-exchange trades, the regulated intermediaries shall submit the relevant transfer information to the SFC, including but not limited to: (i) stock name and stock code of the shares transferred, (ii) transaction price per share, (iii) quantity of shares of the transaction, (iv) transaction date and (v) CID of the transferee or transferor.
It is envisaged that the two proposed regimes, once in place, will help ensure market integrity and thus support the continued development of Hong Kong as a premier international financial centre. The SFC invites market participants and interested parties to submit written comments on the proposals by no later than 4 March 2021, following which consultation conclusions will be published.
Reference:
The International Chamber of Commerce launches its new Arbitration Rules
ISSUING AUTHORITY:
The International Chamber of Commerce
DATE OF ISSUANCE:
December 1, 2020
EFFECTIVE DATE:
January 1, 2021
The 2021 Arbitration Rules of the International Chamber of Commerce (“ICC”) (the “2021 Rules”) were unveiled by the ICC on 1 December 2020 and entered into force on 1 January 2021. The 2021 Rules define and regulate the management of cases received by the International Court of Arbitration of the ICC (the “ICC Court”) from 1 January 2021. The 2017 Arbitration Rules of the ICC will continue to apply to cases registered prior to 1 January 2021.
Amongst all the amendments, the most significant changes include:
● Joinder of additional parties: Article 7(1) of the 2021 Rules allows a request for joinder of additional parties to be made even after the constitution of the arbitral tribunal.
● Extended scope for consolidation: Article 10(c) of the 2021 Rules allows for consolidation of two or more arbitrations where the claims are not made under the same arbitration agreement or agreements provided the arbitrations are between the same parties, the disputes arise in coonection with the same legal relationship and the ICC Court finds the arbitration agreements to be compatible.
● Duty to disclose third-party funding: Article 17(7) of the 2021 Rules imposes a positive duty on each party to inform the Secretariat of the ICC Court, the arbitral tribunal and the other parties of any third-party funding arrangement they have entered into.
● Effective case management: Article 22(2) of the 2021 Rules imposes an obligation on the arbitral tribunal to adopt appropriate procedural measures to ensure effective case management.
● Expanded scope for application of expedited arbitration rules: Article 2 in Appendix VI of the 2021 Rules allows the Expedited Procedures Rules to apply to an arbitration where the amount in dispute does not exceed US$3 million (increased from US$2 million).
The 2021 Rules marks another step taken by the ICC to make the arbitrations more efficient, flexible and transparent.
Reference:
The 2021 International Chamber of Commerce Arbitration Rules
Introduction of "no-use restriction requirement" to the licensing regime for the operation of hotels and guesthouses
ISSUING AUTHORITY:
Government of the HKSAR
DATE OF ISSUANCE:
June 19, 2020
EFFECTIVE DATE:
December 1, 2020
The Hotel and Guesthouse Accomodation (Amendment) Ordinance 2020 (the “Ordinance”) was gazetted on 19 June 2020 and has come into operation on 1 December 2020. Under the Ordinance, the licensing regime for the operation of hotels and guesthouses is revamped to include a “no-use restriction requirement” and the Hotel and Guesthouse Accomodation Authority (the “Authority”) is empowered to take into account the relevant restrictive provisions in land documents in considering whether or not to grant or renew a licence.
Under the new section 12O(2)(b) of the Ordinance, in order to satisfy that a premises for the operation of a hotel or guesthouse is free from a use restriction, the Authority will require each applicant to provide a written legal advice given by a legal practitioner confirming that there is no restrictive provision in the deed of mutual covenant (“DMC”) of the premises concerned, or in the land lease if there is no DMC, which prohibits the site from being used: (i) as a hotel or guesthouse; (ii) for commercial purposes; or (iii) other than for private residential purposes.
To provide the existing licene holders with time and leniency to cope with the new licensing regime, the Authority has put in place a transitional period of 12 months which ends on 30 November 2021. Any licence renewal application submitted before the said date can be processed in accordance with the old licensing regime and the subject licence can be extended for a maximum period of 12 months. After the renewal period ends, the licensee would have to satisfy all requirements under the new licensing regime for further renewal of the license.
In light of the new licensing regime, it is recommended that a hotel or guesthouse licence holder shall invite a legal professional to look into the DMC or land lease of the premises to ensure compliance with the “no-use resctriction requirement”. Whilst the transitional arrangement may buy a licence holder some time, things should be planned ahead to avoid last-minute surprise which could put a business in jeopardy.
Reference:
Hotel and Guesthouse Accomodation (Amendment) Ordinance 2020
In 2013, Stevenson, Wong & Co. entered into an association with AllBright Law Offices. Stevenson, Wong & Co. is a forward-looking, dynamic law firm with offices in Hong Kong and has been providing clients with effective legal services and solutions since 1978.
Website: www.sw-hk.com E-mail: info@sw-hk.com
Follow us - WeChat: swc_hk / Linkedin: Stevenson, Wong & Co. / Twitter: swcohk
