Jane McBride, Partner and head of the firm’s SFC compliance, licensing and regulatory team was recently quoted in Bloomberg. The article entitled “Hong Kong's Thriving Broker Bazaar Hit After Regulators Step In” highlights how the SFC has applied increased scrutiny on the purchase of Hong Kong brokerages over the past year, following a wave of Chinese firms acquiring Hong Kong-licensed corporations in recent years. The SFC has embarked on a campaign to make sure acquirers don’t get hold of financial licenses without being subject to proper background checks.
“We are over the peak for license sales,” Jane commented. “I think people have found religion and are applying for new licenses.”
The number of brokerage acquisitions in Hong Kong has dropped off as companies are being encouraged by the regulator to change tactics and apply for fresh licenses via the front door.
Read the full article here.