News

Investor ID plan unveiled for Stock Connect

China_and_Hong-Kong_flagsA plan to issue investor identification numbers for northbound trading in the Stock Connect scheme, which links Hong Kong and mainland China, has been revealed. The Securities and Futures Commission in Hong Kong said it had reached an agreement with the China Securities Regulatory Commission to implement the ID regime for northbound trading in the third quarter of 2018. The Hong Kong Investment Funds Association welcomed the plan, saying, in a statement, that it could “help reduce regulatory arbitrage and enhance regulatory efficiency”. The Asia Securities Industry & Financial Markets Association (ASIFMA), an industry group, said it hoped the scheme would issue ID numbers to fund managers rather than to individual funds. It said the legal entity identifier (LEI) system, a global scheme, could provide the template. “With respect to the ID, we propose the use of LEI in line with global harmonisation, which most foreign institutional investors should be using already in compliance with MiFID II,” said Mark Austen, chief executive of ASIFMA. The second version of the Markets in Financial Instruments Directive (MiFID II) is a wide-ranging piece of European regulation that aims to promote transparency in capital markets. ©2017 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.

Roundtables

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.

SINGAPORE ROUNDTABLE: Small nation, big ambitions

Apr 18, 2018

Our cross-industry panel discussed fund passporting, robo-advisers and the potential of a new investment structure, the S-Vacc. Chaired by George Mitton in Singapore.