APAC Monthly Private Wealth Legal Developments - February 2026

Australia

ASIC publishes financial advice update for February 2026

ASIC has released its financial advice update for February 2026, covering the following developments and issues affecting financial advice:

• Use of lead generation services: ASIC recently commenced a review of advice licensees that use lead generation services, as covered in last week's update.
• SMSF establishment advice: In November 2025, ASIC released its REP 824  Review of SMSF establishment advice which noted of 100 client files reviewed, 62 failed to demonstrate compliance with best duty and related obligations. ASIC is now pursuing regulatory responses, including enforcement action.
• Internal Dispute Resolution obligations: ASIC's 2025 review of compliance of advice licensees with Internal Dispute Resolution (IDR) obligations revealed misinterpretation of the obligations and inconsistencies in practices for recording and reporting complaints. As a result, ASIC is recommending advice licensees review IDR processes to facilitate accurate and timely reporting.
• Reportable situations compliance: Following ASIC's 2025 review of a sample of advice licensees' compliance with reportable situations obligations which identified misunderstandings of obligations and underreporting of breaches, ASIC has recommended licensees review processes and policies relating to their compliance with the reportable situations regime.
• Offshore outsourcing: ASIC's 2025 review of financial advice licensees' use of offshore providers and related risk management identified a lack of proper assessment and oversight over outsourced services used by representatives. ASIC advised advise licensees using outsourced services must have measures to facilitate the selection of suitable services providers, monitor performance of those providers, and respond to conduct of service providers that breach the licensee's agreements or obligations.

The update also provides summarises of recent ASIC enforcement matters and decisions of the Financial Services and Credit Panel. [26 Feb 2026]

ASIC releases reports of misconduct data

ASIC released data on reports of misconduct for 1 July 2025 to 31 December 2025, which covers:

• The number of reports of misconduct, showing a 28% increase from January to June 2025.
• The nature of and key themes in reports of misconduct, with respect to financial services and retail investors, corporations and corporate governance, market integrity and registry integrity.
• Factors ASIC considers determining whether to take enforcement action (set out in Information Sheet 151  ASIC's approach to enforcement), including whether the misconduct involves significant harm or significant public interest, the nature and impact of the specific case, and availability of appropriate alternatives to formal investigation.

ASIC Deputy Chair Sarah Court noted that the data highlights ASIC's enforcement priorities around noncompliance in corporate governance and director duties. [25 Feb 2026]

ASIC enforcement and regulatory update – July to December 2025

ASIC has released its enforcement and regulatory update for July to December 2025 (Report 829), accompanied by a summary of enforcement outcomes for the period. [25 Feb 2026]

Treasury consults on amended unfair contract terms protections

The Treasury has announced it is consulting for its review of the amendments to the unfair contract terms protections in the Australian Consumer Law and the ASIC Act, introduced in 2022. The review seeks to assess the operation of:

• the amended remedies and enforcement regime;
• the expanded class of contracts the unfair contract terms provisions apply to; and
• the added guidance for assessing whether a contract is a standard form contract and other clarifications of the application and exclusion of, and redress available under, the unfair contract terms provisions.

The Treasury also requests views on extending the unfair contract terms protections to all franchisees, and whether the Australian Consumer Law or the Franchising Code would be the appropriate instrument to do so. [24 Feb 2026]

ASIC Commissioner Alan Kirkland – Toward a safer financial system for Australians

ASIC Commissioner Alan Kirkland spoke at the Professional Planner Advice Policy Summit in Canberra. The key points from his speech were:

• ASIC remains focused on its regulatory and enforcement action arising from the collapse of the Shield Master Fund and First Guardian Master Fund.
• ASIC is continuing to address high-risk super-switching practices through two current reviews into actions taken by superannuation trustees to detect and disrupt such practices and into use of lead generation services.
• ASIC is in favour of government proposal to increase oversight and governance of managed investment schemes, including expanding ASIC's data-collection powers with respect these schemes and requirements for superannuation trustees to report indicators of super-switching. The Federal Government foreshadowed upcoming consultation on reforms to further address inappropriate superannuation conduct, including to introduce waiting periods to counter high-risk super-switching, strengthen platform governance, prevent inappropriate lead generation, amendments to anti-hawking legislation. [23 Feb 2026]

Treasury publishes best practice principles for superannuation retirement income solutions

The Treasury has published voluntary Best Practice Principles for Superannuation Retirement Income Solutions, to guide the design and delivery of retirement income solutions. Specifically, the principles are intended to assist superannuation trustees to:

• Understand members' requirement income needs.
• Design the features of products and product settings that provide an effective income solution targeted to members' needs.
• Support member engagement with retirement income solutions.
• Review needs of members and the retirement income solutions designed to better those solutions. [23 Feb 2026]

ASIC reviews advice licensees using lead generation services

ASIC is reviewing advice licensees that use lead generation services to encourage consumers to change superannuation. ASIC intends to:

• identify financial advice businesses using lead generation services and the nature of arrangements between these parties; and
• where ASIC considers it appropriate, take disruptive or enforcement action.

ASIC identified problematic features associated with lead generation activities, including pressuring consumers to act immediately, limited product disclosure, deficiencies in the advice process, and particular representations about the consumer's existing superfund or the superfund being promoted.

ASIC recommended that:

• Financial advisers and advice licensees involved in or associated with lead generation activities assess whether these activities include any of the above features and, if so, whether legal compliance is achievable. ASIC warned red flags for contravention risk include: misleading consumers, high pressure tactics, unlicensed financial services.
• Superannuation trustees assess internal data with respect to the above features to identify any high-risk superannuation switching conduct.

ASIC has published a list of entities involved in lead generation since 1 July 2024, to be updated throughout the review. [18 Feb 2026]

ASIC imposes licence conditions on Corpay subsidiary following compliance failures

ASIC has imposed conditions on the Australian Financial Services (AFS) licence of Cambridge Mercantile (Australia) Pty Ltd (Cambridge), a subsidiary of the S&P500 listed Corpay Inc., following ongoing compliance failures in its foreign exchange (FX) derivatives business. Cambridge provides services relating to FX derivatives for both wholesale and retail clients.

ASIC's action reacts to concerns that Cambridge misclassified 2,800 retail clients dealing in structured FX derivatives as wholesale clients due to inadequate record keeping systems. Additionally, ASIC held concerns that Cambridge did not promptly remediate misclassified retail clients and that it failed to maintain adequate systems to manage conflict of interests or supervise their compliance and risk management functions.

The additional AFS licence conditions will require Cambridge to:

• prepare a comprehensive remediation plan to address the compliance failures;
• appoint an independent expert to report on the adequacy of Cambridge's remediation plan; and
• have the independent expert assess the operational effectiveness of Cambridge's remediation activities.

Cambridge has cooperated with ASIC throughout this process and has consented to the imposition of the additional licence conditions. [12 Feb 2026]

APRA Chair speaks at Senate Economics Legislation Committee

John Lonsdale, Chair of APRA, has addressed the Senate Economics Legislation Committee, setting out a number of uncertainties and risks which APRA will address in 2026.

He addressed the elevated frequency and intensity of cyber-attacks across the financial system and said that ‘lifting cyber security policies and practices across our regulated industries is another top priority'. In the superannuation sector, APRA are requiring several trustees to bring forward actions to harden their cybersecurity controls.

Mr Londsale stated that APRA will address household indebtedness through its recently implemented new limit on high debt-to-income (DTI) lending for new home loans. He explained that APRA intends to pre-emptively contain risks building up from lending at DTIs of six or above as well as below the 20 per cent limits for both owner-occupiers and investors.

Lastly, Mr Lonsdale spoke to APRA's enforcement of regulations in the superannuation sector which it coordinates with ASIC. For example, in December 2025, APRA accepted a court enforceable undertaking from Netwealth and imposed licence conditions on Diversa Trustees and Equity Trustees to address investment governance-related concerns. [11 Feb 2026]

Treasury consults on proposed changes to MIS oversight and governance requirements

The Treasury launched a consultation on proposed changes to enhance oversight and governance of managed investments schemes (MISs). These changes are prompted by the collapses of the Shield Master Fund and First Guardian Master Fund which were both MISs.

The Treasury's proposed amendments seek to strengthen compliance with the regulatory framework by:

• expanding compliance plan requirements to include a detailed description of the nature of the MIS and its investment strategy, and information outlining how significant risks will be identified, monitored and managed;
• amending the liability framework so that liability attaches only to material contraventions of a plan in order to incentivise higher quality plans;
• making existing audit and assurance standards mandatory for auditors of compliance plans; and
• requiring responsible entities to notify ASIC of the appointment, removal or resignation of committee members.

The amendments will require responsible entities of registered MISs to have a majority of external directors and will remove the option of having a mandatory compliance committee instead. Additionally, responsible entities of registered MISs will be prohibited from conducting related party transactions, with limited exceptions.

The framework for responsible entities will be amended to set more specific financial requirements. Lastly, ASIC will receive increased data collection powers on the retail MIS sector and alerts about superannuation switching.

Feedback is requested by 27 February 2026. [10 Feb 2026]

ASIC enforcement results in Federal Court order for FIIG Securities to pay $2.5 million over cyber security failures

ASIC has announced that the Federal Court have ordered FIIG Securities Limited to pay AUD$2.5 million in pecuniary fines and pay $500,000 towards ASIC's costs due to its failure to protect thousands of clients from cyber security threats. FIIG is a fixed-income specialist providing retail and wholesale investors with access to fixed income investments and bond financing, operating under an AFS licence.

In 2023, FIIG was the subject of a cyber-attack which saw around 385 gigabytes of confidential information stolen and highly sensitive client data leaked onto the dark web. FIIG admitted that adequate cyber security measures would have detected and responded to the data breach sooner and that it had failed to comply with its AFS licence obligations. Additionally, FIIG admitted that complying with its own policies and procedures could have supported earlier detection and prevented some or all of the client information from being downloaded.

ASIC Deputy Chair Sarah Court said ‘ASIC expects financial services licensees to be on the front foot every day to protect their clients' and noted that ‘[t]his is the first time that the Federal Court has imposed civil penalties for cyber security failures under the general AFS licensee obligations'. ASIC detailed FIIG's cyber security failings as not:

• allocating necessary financial resource to have suitably qualified and experienced people available, or implement adequate technological resources to manage cyber security;
• implementing adequate cyber security measures, including multi-factor authentication for remote access users, strong passwords and access controls for privileged accounts;
• having a structured plan to ensure key software systems were being updated to address security vulnerabilities;
• having qualified IT personnel monitoring threat alerts to identify and respond to cyber-attacks;
• providing mandatory cyber security awareness training to staff; and
• having an appropriate cyber incident response plan that was tested at least annually. [9 Feb 2026]

Petra Capital fined for regulatory data reporting failures

ASIC has announced the appointment of Sarah Court as the incoming ASIC Chair. Ms Court will commence as ASIC Chair on 1 June 2026.

Current ASIC Chair, Joe Longo, welcomes the appointment of Ms Court, saying that, ‘Sarah is an exceptional regulator with a strong record in enforcement that demonstrates her integrity and impact,' and that her work ‘as ASIC's Deputy Chair has been instrumental to the success of the agency's structural transformation'. [3 Feb 2026]

ASIC urges strengthening of anti-scam and fraud practices by superannuation trustees

ASIC has urged superannuation trustees to strengthen their anti-scam and fraud practices after it reviewed their communication to superannuation members. ASIC's review assessed the anti-scam and fraud-related content on the websites of 47 superannuation funds. ASIC Commissioner Simone Constant said that the superannuation industry has been slow to respond to evolving scams and fraud risks to members.

ASIC noted that superannuation trustees must improve the availability, quality and actionability of their anti-scam and fraud communication and suggested the following improvements to superannuation trustees:

• making anti-scam and fraud information prominent and easy to find on superannuation websites;
• replacing outdated, generic or overly complex information with clear definitions and examples of what constitutes a scam; and
• providing actionable information for members to prevent or report scams and fraud, including clear, detailed actionable steps and dedicated reporting channels.

ASIC strongly encouraged superannuation trustees to read its January 2025 letter on protecting Australians against scams and fraud, the baseline measures set out in REP 761 on scam prevention and detection along with the four major banks' response, and REP 790 on anti-scam practices of banks outside the four major banks. Additionally, ASIC encouraged superannuation trustees to closely monitor the incoming Scams Prevention Framework (SPF) since the Commonwealth Government has said that the SPF would be open to the future inclusion of the superannuation industry. [4 Feb 2026]

ASIC announces new ASIC Chair

ASIC has announced the appointment of Sarah Court as the incoming ASIC Chair. Ms Court will commence as ASIC Chair on 1 June 2026.

Current ASIC Chair, Joe Longo, welcomes the appointment of Ms Court, saying that, ‘Sarah is an exceptional regulator with a strong record in enforcement that demonstrates her integrity and impact,' and that her work ‘as ASIC's Deputy Chair has been instrumental to the success of the agency's structural transformation'. [3 Feb 2026]

Hong Kong

SFC bans former licensed representative for life over serious misconduct

The SFC has banned Mr Andy Lau Ka Ho, a former licensed representative of three related licensed corporations, from re-entering the industry for life following findings of serious misconduct.

An SFC investigation was triggered by a self-report jointly made by the group of licensed corporations, which found that, between September 2014 and May 2019, Mr Lau, who was an account executive at one of the licensed corporations during the material time:

• conducted unauthorised trades in a client's securities trading accounts;
• carried out online trading via the client's accounts without the client's knowledge or authorisation;
• sent fabricated trading instructions from the client's email account to his office email, falsely representing them as instructions from the client;
• provided the client with forged account statements and account summary reports which contained false account information, with most of the forged statements showing significant overstatement of cash balances and net portfolio values; and
• forestalled the client's cash withdrawal from his accounts by falsely claiming that a 3.94% annual interest rate was available to him for a three-month deposit of HK$59 million, asserting that the deposit arrangement had been made on his behalf, and providing the client with a forged certificate of deposit confirmation to support the fabricated arrangement.

The SFC is of the view that the above misconduct of Mr Lau was blatantly dishonest and indicative of a pattern of deliberate deceit, calling into question his fitness and properness to be a licensed person. [26 Feb 2026]

Financial Secretary delivers 2026-27 Budget Speech outlining initiatives to drive high-quality and inclusive growth with innovation and finance

In his 2026-27 Budget Speech, Hong Kong's Financial Secretary, Mr Paul Chan, outlined key initiatives aimed at driving high-quality and inclusive growth with innovation and finance. Highlights and further information on the Budget can be found here and here. The key initiatives relating to financial services include (among others):

International innovation and technology hub

• The HKMA and Cyberport have recently commenced trials for the second cohort of sandbox, focusing on 'AI vs AI' strategies for promoting secure and responsible AI application in the banking sector.
• The Government has requested the HKEX to review the listing requirements to facilitate and attract the listing of aerospace enterprises in Hong Kong.

RMB internationalisation

• The Government will explore with the Mainland to expedite the issuance of Mainland government bond futures in Hong Kong, include real estate investment trusts (REITs) under mutual access, introduce an RMB trading counter under Stock Connect Southbound trading, and further enhance Bond Connect.

Securities market

• The HKEX will take forward various measures, including consulting the market on the revision of listing requirements for enterprises with weighted voting right structures, enhancement of the IPO process, implementing the enhanced structured product listing framework, and consulting on specific implementation proposals for the T+1 settlement cycle.
• The Government will enhance the regulatory regime for listed companies, provide specific guidelines for overseas companies seeking secondary listing in Hong Kong, offer more overseas markets as recognised exchanges, and continue to explore with the market the provision of an over-the-counter trading platform for delisted stocks or those requiring special handling.

Bond market

• An electronic bond-trading platform will be launched in the second half of 2026.
• The Government will continue issuing tokenised bonds on a regular basis, and the HKMA will encourage more digital bond issuances through the Digital Bond Grant Scheme.

Asset and wealth management centre

• The Government will introduce an amendment bill in the first half of 2026 to implement further tax benefits to attract more family offices and funds to Hong Kong.
• The Government and the SFC will continue promoting the development of the REIT market, including introducing an amendment bill in 2026 to enable the privatisation or restructuring of REITs.
• The HKEX Integrated Fund Platform will expand its services in 2026, covering fund sales procedures such as payment and settlement.

Fintech and financial infrastructure

• The Government will introduce a bill in 2026 to establish licensing regimes for, among others, digital asset dealing and custodian service providers.
• The HKMA will issue its first batch of licences to issuers of fiat-referenced stablecoins in March 2026.
• The SFC will further enhance the liquidity of Hong Kong's digital asset market and facilitate the offering of more products and services to professional investors, as well as set up an accelerator to expedite market innovation.
• The Government will provide guidelines to clarify that registers of debenture holders can be kept in the form of a distributed ledger, and explore the adoption of electronic signatures for bond issuance documents and the digitalisation of bearer bonds.
• The Government will amend the Inland Revenue Ordinance to implement the Crypto-Asset Reporting Framework and the amended Common Reporting Standard by the Organisation for Economic Co-operation and Development, and introduce an amendment bill in the first half of 2026.
• The Government will explore offering tax incentives for eligible institutions conducting gold trading and settlement in Hong Kong, assist the industry in setting up an industry-led trade association to consolidate resources, step up promotion, and foster ties with industry stakeholders globally.

Strengthen market systems

• The HKMA's CMU OmniClear Holdings Limited (CMU OmniClear) and the HKEX will soon commence a study on the establishment of a one-stop multi-asset class post-trade securities infrastructure to cover Mainland and Hong Kong equity and debt securities.
• The Central Moneymarkets Units will activate linkages with SIX of Switzerland and launch equity post-trade services for the first time, enabling investors to manage their diversified asset portfolios more efficiently.
• The CMU OmniClear will establish a digital asset platform in 2026.
• The Insurance Authority will enhance the risk-based capital regime for insurance companies, adjusting risk parameters for the general insurance business and providing capital relief for infrastructure investments.
• The Government will release the consultation outcome on the regulation of money lenders in March 2026 to address the issue of excessive borrowing and better protect the public.

Green finance

• The Government will continue issuing sustainable bonds, establishing an enabling regulatory environment and strengthening cross-sectoral collaboration.
• The HKMA will strive to develop green transition planning guidance for banks within 2026.
• The Government will support the exploration with the Mainland and international multilateral financial institutions of the establishment of a Hong Kong-based Green Technology Projects Accelerator.

The SFC, the Insurance Authority, and the Accounting and Financial Reporting Council  have announced their support for the measures announced by Mr Chan. [25 Feb 2026]

HKMA Deputy Chief Executive provides banking sector 2025 year-end review and priorities for 2026

The HKMA's Deputy Chief Executive, Mr Arthur Yuen, has delivered a presentation on the HKMA's 2025 year-end review and priorities for 2026 for the banking sector.

Building on the work done in 2025, the HKMA plans to focus on the following areas (among others) in 2026:

• Credit risk and credit flow – Close monitoring of asset quality and potential risks, adopting a pragmatic approach to corporate difficulties, fostering accessible lending for small-to-medium enterprises, supporting business transformation, and facilitation of intellectual property financing;
• Operational and technology risks – Supporting banks on the implementation of the operational resilience framework and shifting to sustaining 'business as usual' post-May 2026, strengthening cyber resilience maturity across the risk management lifecycle, conducting cyber mapping, implementing new international standards on third-party risk management, and deepening supervisory engagement on cloud adoption (based on the new practice guide);
• Fintech 2030 – Advancing 'DART' initiatives, including holistic risk data strategies, supporting the responsible use of artificial intelligence (via the GenA.I. Sandbox++ and Responsible A.I. Toolkit), promoting innovation via the supervisory incubator for distributed ledger technology, and promoting resilience (though the fintech cybersecurity baseline, real-time cyber threat index and the quantum preparedness index);
• Investor protection – Strengthening the customer‑centric bank culture, introducing cross‑sector reference checking, supporting the sustainable and responsible development of the digital asset sector, reviewing the sale of higher‑risk insurance products and banks' insurance referral businesses;
• Anti‑fraud – Proactively countering emerging fraud tactics through enhanced customer identity authentication, surveillance of banking scams, and broader use of Scameter and suspicious account alerts, strengthening public education initiatives, and deepening collaboration, innovation and information sharing;
• Other priorities – These include work relating prudential supervision, conduct supervision, anti-money laundering and financial crime risk, and green and sustainable banking. [12 Feb 2026]

CBUAE and HKMA deepen financial cooperation and market connectivity with third bilateral meeting

The Central Bank of the United Arab Emirates (CBUAE) and the HKMA held their third meeting on 11 February 2026 in Abu Dhabi to further strengthen cooperation and connectivity between the financial sectors of both jurisdictions, building on the progress achieved from the second meeting held in Hong Kong in December 2024 (see our previous update).

The CBUAE and the HKMA conducted in-depth discussions on various areas, including:

• Cross-border debt capital market connectivity;
• Developments in digital assets, tokenisation, and central bank digital currency;
• Development of regulatory frameworks for stablecoins; and
• Supply chain financing.

Following the signing of a memorandum of understanding in December 2024 (see our previous update), the CBUAE has formally joined Hong Kong's Central Moneymarkets Unit, providing investors in the United Arab Emirates with direct and cost-effective access to Chinese Mainland capital markets and financial assets through Hong Kong's financial infrastructure. [12 Feb 2026]

SFC updates FAQs, checklists and forms relating to MPF products and pooled retirement funds

The SFC has updated various FAQs, compliance checklists and filing forms relating to Mandatory Provident Fund (MPF) products and pooled retirement funds:

• FAQs relating to MPF products (MPF Code) – Questions 5A, 6, 6A, 7, 7A, 7B, 8, 8A and 10 under Section 2 were updated, and a new Question 6B under Section 2 was added;
• FAQs relating to pooled retirement funds (PRF Code) – Questions 3, 7, 8, 9, 10, 11, 11A, 12, 12A and 18 under Section 2 and Questions 1 to 5 under Section 4 were updated, and a new Question 9A under Section 2 was added;
• Compliance checklist for application of MPF schemes;
• Compliance checklist for application of pooled investment funds;
• Filing form for notice of scheme changes falling within 8.2B of the MPF Code and do not require SFC's prior approval;
• Compliance checklist for application of pooled retirement funds;
• Filing form for notice of scheme changes within 10.1B of the PRF Code and do not require SFC's prior approval. [13 Feb 2026]

SFC announces further initiatives to progress VA market development under ASPIRe Roadmap

The SFC has announced various initiatives as part of its ASPIRe Roadmap (see our previous update) to enhance Hong Kong as a global virtual asset (VA) hub.

High-level framework for VA perpetual contract offering

• The high-level framework, which forms part of Pillar P (Product) of the ASPIRe Roadmap, sets out the SFC's regulatory approach for SFC‑licensed VA trading platform (VATP) operators proposing to offer VA perpetual contracts, which are leveraged instruments and should only be offered to professional investors.
• The framework sets out requirements relating to assessment of client knowledge, reference assets, product design, trading and settlement, margin arrangements and loss allocation management, market surveillance, and disclosure. VATP operators are welcomed to discuss their proposed perpetual contract structure with the SFC.

Circular permitting VATP operators to accept affiliated market makers

• The SFC has issued a circular setting out its regulatory approach and expected standards for licensed VATP operators to allow affiliated companies to engage in market making activities on their platforms, provided that strong safeguards are in place to mitigate conflicts of interest. Participation of these affiliates should provide licensed VATPs with an additional avenue for liquidity, consistent with Pillar A (Access) of the ASPIRe Roadmap.
• A VATP operator accepting affiliated market maker participation will be subject to the terms and conditions set out in the appendix to the circular, which will be imposed on the operator's licence. The operator must provide advance notice to the SFC before allowing an affiliate to engage in market making activities on its platform.

Circular on offering of financing for VA dealing, access to shared order book, and safeguarding client VAs relating to withdrawals

• The SFC has issued a circular setting out its framework to enable licensed corporations providing VA dealing services under an omnibus account arrangement (VA brokers) with SFC-licensed VATP operators to offer financing for VA dealing, subject to the sufficiency of collateral and robust investor safeguards. This would enable margin clients with strong credit profiles and collateral to participate more actively in VA trading, thus enhancing the liquidity of Hong Kong's market in a risk-controlled manner.
• The circular also lays out expected standards for VA brokers participating in shared order books, as well as requirements for client VA safeguards by VA brokers permitting VA withdrawals.

Digital Asset Accelerator

• The SFC's Executive Director for Intermediaries, Dr Eric Yip, announced at Consensus Hong Kong 2026 that a Digital Asset Accelerator will be set up under Pillar Re (Relationships) of the ASPIRe Roadmap, which will operate as a structured communication channel between the SFC and industry innovators.
• Through an appointed agent, the accelerator will support innovation through providing clarity for market builders, and help regulators and practitioners allocate resources efficiently while exploring new market-making models, financing mechanisms, and leveraged products. [11 Feb 2026]

SFC cautions public against ramp-and-dump scams involving impersonation of commentators

The SFC has warned the public to remain vigilant against investment scams involving fraudsters impersonating well-known stock commentators on social media and messaging platforms, claiming to offer investment advice that guarantee high returns.

In recent cases reported to the SFC, scammers had lured victims into participating in ramp-and-dump schemes – a form of stock market manipulation – causing victims to suffer significant losses when the share prices collapse. In some cases, victims were lured into trading on fraudulent platforms or apps where they faced difficulties with asset withdrawals.

There are also cases where the fraudsters approached the victims after they had suffered losses, claiming that 'compensation' may be arranged upon payment of additional 'deposits' or 'handling fees'. When the victims transferred funds into the designated accounts, the fraudsters broke off contact with the victims.

The SFC has reported these cases to the Police, and will continue to collaborate with other law enforcement agencies to crack down on investment scams. More information on scam prevention and known fraudulent activities can be found on the SFC alert list and Police Anti-Deception Coordination Centre webpages. [11 Feb 2026]

SFC reprimands and fines licensed corporation HK$9 million for fund management failures

The SFC has reprimanded and fined Kylin International (HK) Co., Limited (Kylin) HK$9 million for multiple failures in managing private funds between August 2018 and July 2021, when it acted as investment manager or consultant to six sub-funds of a Cayman-incorporated fund.

The SFC found that Kylin did not fulfill its regulatory obligations in five key areas:

• Conflicts of interest – Failed to avoid, manage and minimise conflicts of interest arising from six loans extended by it or its director to four of the sub-funds and disclose such conflicts to the investors;
• Reconciliations and valuations – Failed to perform monthly reconciliations and regular valuations of the assets of the sub-funds, and ensure that an independent auditor was appointed to audit the financial statements of the sub-funds annually;
• Misrepresentation to investors – Incorrectly informed the investors of the sub-funds that, due to their classification as professional investors, Kylin was exempted from complying with certain regulatory requirements;
• Know your client (KYC) and suitability controls – Failed to implement adequate and effective systems and controls in relation to KYC and suitability assessment requirements; and
• Anti-money laundering and counter-terrorist (AML/CTF) financing record keeping – Failed to keep records that could demonstrate that it had complied with the relevant regulatory requirements.

The SFC considers that Kylin's misconduct was attributable to failures by Steven Wong Yung and Zhu Hong to discharge their duties as members of Kylin's senior management. Mr Wong (responsible officer and CEO) was accountable for all of Kylin's failures, whereas Ms Zhu (director and manager-in-charge of various core functions) was responsible for the failures related to the six loans and Kylin's AML/CTF compliance. They were disciplined by the SFC in March and August 2025 respectively (see our previous updates here and here).

The SFC noted that Kylin had implemented remedial measures following a limited review conducted by the SFC into its business activities in late 2020. [9 Feb 2026]

Masterminds sentenced to imprisonment of up to 24 months in securities fraud case involving social-media ramp-and-dump schemes

The District Court has sentenced Mr Li King Hong and Mr Lam Hin Fai to imprisonment for 24 months and 22 months respectively for securities fraud involving ramp-and-dump schemes promoted through social media. Their wives, Ms Chan Ngai See and Ms Betty Hui Pui Yan, were ordered to perform 180 hours and 120 hours of community service respectively.

This case stemmed from a joint SFC-Police operation against suspected investment scams including social media ramp-and-dump activities. The defendants were prosecuted by the Department of Justice (see our previous update).

The Court heard that between June and September 2020, Mr Li and Mr Lam directed their wives to deceive an account executive at CVP Securities Limited (CVP) on nine occasions. Ms Chan, Mr Lam and Ms Hui falsely represented ownership of shares in four Hong Kong-listed companies with the intent to defraud, inducing CVP to place orders to sell their shares at inflated prices when they did not own them (ie, naked short selling). Following a subsequent decline in share prices, they repurchased the shares at lower prices to close their short positions, thereby obtaining illicit profits of HK$3.3 million. [9 Feb 2026]

SFC convenes third Digital Asset Consultative Panel meeting to discuss forthcoming regulatory developments

The SFC has convened the third meeting of the Digital Asset Consultative Panel, bringing together SFC‑licensed virtual asset trading platforms (VATPs) to discuss forthcoming regulatory developments for digital assets in Hong Kong. This follows the second meeting which was held in July 2025 (see our previous update).

The participants of the meeting discussed initiatives aimed at strengthening the digital asset ecosystem, including regulatory measures to enhance the liquidity of licensed VATPs and to expand the range of product and service offerings. The SFC reaffirmed its commitment to balancing innovation with robust investor protection and to maintaining close engagement with industry stakeholders. [6 Feb 2026]

HKMA announces expansion of PAPT to cover sale and purchase of residential properties in secondary market

The HKMA has announced (via a press release and a circular) the expansion of the Payment Arrangements for Property Transactions (PAPT) to cover the sale and purchase of residential properties in the secondary market in Hong Kong, following the issue of a circular by the Hong Kong Association of Banks (HKAB). This initiative is supported by the Law Society of Hong Kong, the Estate Agents Authority, and the Consumer Council.

The expanded arrangement will apply to eligible transactions with provisional sale and purchase agreements signed on or after 28 February 2026.

The PAPT was initially launched in November 2022 for residential mortgage refinancing to enhance payment efficiency and security and reduce credit and operational risks for authorised institutions (see our previous update).

Under the expanded arrangement, mortgage loan proceeds advanced to the purchaser will be disbursed by the purchaser's mortgage institution directly to the vendor's mortgage institution through the Clearing House Automated Transfer System to settle any outstanding mortgage. Any surplus proceeds will be paid to the vendor's designated bank account as early as on the same day. Where the vendor does not have an outstanding mortgage, the full proceeds will be disbursed to the vendor's bank account.

The expansion follows consultations with the banking industry, the legal profession and the estate agency sector, as well as successful pilot tests with real transactions. Essential implementation information was distributed in September 2025 by the HKAB to licensed banks offering residential mortgage loans for advance preparation. The HKAB has also published a leaflet regarding the expansion of the PAPT.

The HKMA expects mortgage banks to complete their preparations in time, provide adequate staff training and customer communication, and work closely with panel solicitors to ensure smooth mortgage drawdowns. [5 Feb 2026]

SFST outlines forthcoming initiatives to enhance Hong Kong's position as leading fixed income and currency hub

In his written reply to questions raised by Hon Robert Lee in the Legislative Council, Mr Christopher Hui, Secretary for Financial Services and the Treasury (SFST), outlined a number of forthcoming regulatory and market initiatives aimed at further consolidating Hong Kong's position as a leading fixed income and currency hub, in line with the SFC‑HKMA Roadmap for the Development of Fixed Income and Currency Markets announced in September 2025 (see our previous update).

• To enhance the overall bond market liquidity, the SFC is studying the feasibility of an electronic bond-trading platform built and operated by market participants. The SFC has appointed external consultants and has begun interviews with market participants, market operators and regulatory authorities.
• The SFC is actively promoting the establishment of a commercial repo (repurchase) market and a central counterparty regime in Hong Kong, including conducting a feasibility study on setting up the relevant clearing system.
• The HKEX will continue to regularly review relevant collateral arrangements, and explore incorporating new products while balancing various risks, with the aim of providing investors with more diversified collateral options.
• The Mainland and Hong Kong regulators have announced their support for the launch of offshore treasury bond futures in Hong Kong, introducing an effective offshore risk management tool for investing in Chinese Government Bonds in Hong Kong. The relevant preparatory work has been largely completed, and the SFC and the HKEX are working to implement the measure.
• The HKEX will continue to expand its derivatives product suite and maintain a positive and open stance towards issuing new products, including derivatives with assets from other economies as underlying assets.
• To enhance the attractiveness and demand for tokenised bonds, the HKMA is exploring secondary market applications of tokenised bonds, which include using digitally native bonds and tokenised versions of existing bonds as collaterals for repo financing. Results of the study will be announced in due course. The Government is working with the HKMA to review the current legal regime and identify potential enhancements.
• The HKMA is assessing whether the current form of tokenised bonds can meet the needs of retail investors. The Government and regulators will continue to engage with the industry to explore how tokenised bonds can be effectively and suitably applied at the retail level. [4 Feb 2026]

HKMA publishes Fintech Promotion Blueprint to foster responsible innovation and fintech advancement under Fintech 2030

As part of its Fintech 2030 strategy (see our previous update), the HKMA has published a Fintech Promotion Blueprint setting out a tactical framework to foster responsible innovation and advance fintech development in the banking sector.

The blueprint covers five key technology enablers and foundations, namely (i) artificial intelligence (AI), (ii) distributed ledger technology (DLT), (iii) high performance computing, (iv) data excellence and (v) cyber resilience. To support this, the HKMA will focus on three strategic dimensions – technological advancement, ecosystem collaboration, and talent and outreach.

In the coming months, the HKMA will launch four flagship projects:

• Quantum Preparedness Index: The HKMA will develop this index to assess the readiness of the banking sector for Post-Quantum Cryptography. The index will offer a comprehensive current-state analysis and serve as a measurable target for the next few years.
• New Risk Data Strategy: The HKMA will implement this strategy designed to enhance the data management capabilities of banks, enabling them to more effectively leverage complex structured and unstructured data for advanced analytics. These capabilities will also support the expansion of the HKMA's Granular Data Reporting initiative, strengthening the agility of risk management and banking supervision.
• Fintech Cybersecurity Baseline: The HKMA will work with industry experts to establish a new, standardised, industry-led Fintech Cybersecurity Baseline for fintech solution providers partnering with banks, focusing on specific novel applications of AI and DLT.
• Competency development support: The HKMA will work with the industry to provide practical guidance to enhance the skills of general fintech users, focusing on 'human-machine interaction' capability aimed at establishing a clear view of the skills required for the advanced applications of AI and DLT in the next generation of financial products and services.

The Blueprint also introduces a series of activities to address the key challenges to further fintech advancement, as identified in the Tech Maturity Stock-take (see our previous update). These initiatives include FiNETech events, responsible innovation competitions, a revamp of the Fintech Connect matching platform and practical workshops. [3 Feb 2026]

SFC hosts third broker forum to forge stronger industry collaboration and shape a compliant and innovative future

The SFC has hosted its third broker forum (see our previous update) to foster a culture of compliance and a spirit of collaboration to facilitate market development and financial innovation in Hong Kong's capital markets. The forum serves as a regular platform for open dialogues between the SFC and the industry.

Attended by more than 600 participants from the financial sector (in-person and online), the forum included:

• A panel discussion, held for the first time, that shared the industry's views on regulatory issues and commercial implications arising from the growing prevalence of finfluencers; and
• Updates regarding the Integrated Fund Platform, IPO sponsor conduct issues (see our previous update regarding the SFC's 30 January 2026 circular raising 'highly concerning issues'), and controls for client onboarding and prevention of potential layering activities. [2 Feb 2026]

SFC outlines initiatives to foster a dynamic, forward-looking and globally competitive REIT market in Hong Kong

In her remarks at a luncheon hosted by the Hong Kong REITs Association, Ms Alexandra Yeong, Interim Head of Investment Products of the SFC, emphasised the importance of strengthening the competitiveness of the Hong Kong real estate investment trust (REIT) market. Ms Yeong highlighted some of the key measures in this regard:

• Grant scheme and stamp duty waiver: The SFC worked with the Government to extend the REIT grant scheme for three years to May 2027, providing continued financial support for REIT listings in Hong Kong (see our previous update). The waiver on stamp duty for transfers of REIT units implemented in December 2024 (see our previous update) has enhanced market liquidity, with average daily turnover of Hong Kong REITs increasing by 16% in 2025.
• REIT Connect: The SFC reiterated that the early implementation of REIT Connect (see our previous update) remains a top priority. The initiative is expected to significantly broaden the investor base and enhance liquidity, particularly in light of the rapid growth of the Mainland C‑REIT market. The SFC has continued to work closely with the Government and Chinese Mainland authorities and has made good progress. It will announce further details once available.
• New REIT Channel and streamlined measures: A dedicated REIT Channel launched in October 2025 (see our previous update) allows confidential pre‑application consultations, while the authorisation process for new REIT listings has been streamlined to enable decisions to be made within four weeks from take-up under normal circumstances. Documentary requirements for secondary offerings have also been simplified.
• Facilitating corporate activitiesand privatisation: After concluding the public consultation in October 2024 (see our previous update), the Government and the SFC are taking forward the legislative proposals to introduce a statutory scheme of arrangement and compulsory acquisition mechanism for REITs, and to enhance the market conduct regime applicable to REITs under the Securities and Futures Ordinance. The legislative amendments will be introduced into the Legislative Council in due course.

The SFC also highlighted its engagement with overseas regulators to explore cross‑border collaboration opportunities, and encouraged local and international REIT managers to take advantage of Hong Kong's regulatory framework and policy initiatives. Looking to the future, the SFC's priority in fostering a dynamic, forward-looking and globally competitive REIT market in Hong Kong remains. [30 Jan 2026]

Singapore

MAS: Workgroup convened to develop Singapore's growth capital ecosystem

MAS has reported that the Prime Minister and Minister for Finance announced the establishment of a workgroup to develop strategies to strengthen Singapore as a leading centre for growth capital.

The Growth Capital Workgroup will be chaired by Chee Hong Tat, Minister for National Development and Deputy Chairman of MAS, and will recommend measures to support the financing needs of companies from Singapore and the region across the various growth stages. It will comprise key private sector stakeholders and public sector representatives, with support from MAS and the Ministry of Trade and Industry. The workgroup aims to complete its review by end-2027, and will provide interim updates on its recommendations along the way. [13 Feb 2026]

MAS announces expansion of EQDP

MAS has announced that it will expand the Equity Market Development Programme (EQDP) from S$5 billion to S$6.5 billion. This follows the announcement by the Prime Minister and Minister for Finance at Budget 2026 today to top up the Financial Sector Development Fund to support the expansion of the EQDP. [12 Feb 2026]

MAS: CP on proposed change to share financing requirement

MAS has published a consultation paper (CP) on a proposal to increase the share financing threshold from 80% to 90% of the subscription price or purchase price of shares for initial public offerings (IPOs), employee share option schemes and rights issues. MAS has also published the proposed amendments to the MAS Notices in draft form.

Responses are requested by 16 March 2026. [6 Feb 2026]

MAS: Written reply to Parliamentary Question on delays and non-receipt of transaction alerts for fraudulent transactions

MAS has published a written reply to Parliamentary Question on delays and non-receipt of transaction alerts for fraudulent transactions. The question includes:

• whether MAS has assessed the risk to consumers when victims of fraudulent transactions are overseas or are unable to receive SMS alerts on a timely basis;
• whether regulatory guidelines can be provided on how banks shall account for such cases; and
• whether regulatory guidelines can be provided on whether consumers shall bear losses arising from system delays of transaction alerts in circumstances beyond their control.

MAS responded that its E-Payments User Protection Guidelines require banks to provide real-time transaction notification alerts by way of SMS, email or in-app notification. Major retail banks generally offer parallel notifications through at least two channels, with in-app and email notifications being the common default channels.

On the matter of regulatory guidelines, MAS expects banks to treat customers fairly, and this would include looking into whether notifications were sent in a timely manner. If a scam victim is not satisfied with the bank's determination, the Financial Industry Disputes Resolution Centre (FIDReC) provides an option for mediation and adjudication. [4 Feb 2026]

MAS: Written reply to Parliamentary Question on clearer regulatory guidance on assigning liability for fraudulent transactions

MAS has published a written reply to Parliamentary Question on clearer regulatory guidance on assigning liability for fraudulent transactions. The question includes whether clearer regulatory guidance can be issued to protect consumers by setting out:

• how liability is determined when fraudulent transactions involve third-party payment platforms such as digital wallets; and
• whether banks can disclaim responsibility by attributing losses from fraudulent transactions to such platform interfaces.

MAS responded that existing regulatory guidelines such as the E-Payments User Protection Guidelines set out duties for financial institutions that operate bank accounts or issue personal payment accounts containing e-money (e-wallets), which in turn govern the responsibility for losses arising from unauthorised transactions.

MAS expects firms to conduct investigations, and consider their obligations and whether customers acted responsibly. A firm may not disclaim responsibility solely by citing the involvement of another firm, and should consider the specific circumstances of each case.

Should customers disagree with the outcome of a firm's investigation, the FIDReC provides an option for mediation and adjudication. [4 Feb 2026]

MAS: Written reply to Parliamentary Questions on the SRF and real-time fraud detection standards expected of firms

MAS has published a written reply to Parliamentary Questions on the Shared Responsibility Framework (SRF) and real-time fraud detection standards expected of firms.

The questions include:

• whether MAS has plans to further review the Guidelines on SRF, in particular, banks' responsibility for unauthorised digital transactions that occur within seconds despite fraud alerts to customers;
• whether existing rules adequately require banks to halt or reverse fraudulent transactions when customers report them promptly; and
• whether the Ministry is reviewing the current real-time fraud detection standards expected of firms in Singapore and if so, whether stronger real-time verification standards will be mandated.

MAS responded that 79% of scam cases involved self-effected or authorised transfers rather than unauthorised transactions. Banks perform step-up authentication for flagged transactions, by suspending such transactions or requiring additional confirmation from customers.

MAS added that the fraud surveillance duty under the SRF is aimed at a scenario where there is rapid draining of significant account balances. Banks are required to block or hold such transactions for at least 24 hours to allow customers time to review transfers and decide if they should proceed, which has already caused some inconvenience to legitimate transactions. On this, MAS referred to the reply on how MAS and banks have worked to minimise disruptions to legitimate transactions. [3 Feb 2024]

SGX RegCo proposes rule changes to facilitate wider adoption of broker custody accounts

SGX RegCo has published a consultation paper (CP) seeking feedback on proposed rule amendments to facilitate the broader use of broker custody accounts. SGX RegCo is consulting on rule amendments to effect the following:

Enable the use of omnibus broker custody accounts.

• Require those who operate broker custody accounts (i.e. brokers and depository agents) to facilitate clients' exercise of shareholder rights. This includes requiring them to disseminate to clients notices of meetings and corporate action events, to assist clients in requisitioning meetings and to provide clients sufficient time to give instructions.
• Enhance the regulatory framework for depository agents to maintain robust regulatory oversight.

Responses are requested by 27 March 2026. [30 Jan 2026]

Malaysia

BNM: DAIH charts 2026 strategy with focus on Ringgit stablecoins and tokenised deposits

BNM has announced that the Digital Asset Innovation Hub (DAIH) has onboarded three initiatives to test real-world applications involving ringgit stablecoins and tokenised deposits in 2026. The three initiatives will focus on wholesale payment use cases across both domestic and cross-border transactions, including to enable the settlement of tokenised assets.

These initiatives will be conducted in a controlled environment and involve collaboration with ecosystem partners, including corporate clients of financial institutions and other regulators. Certain use cases will also explore Shariah-related considerations.

The testing will allow BNM to assess the implications to monetary and financial stability and inform our policy direction in these specified areas. Notably, BNM intends to provide greater clarity on the use of ringgit stablecoins and tokenised deposits by end-2026. These efforts could also be a precursor to future integration with existing work by BNM such as on wholesale central bank digital currency. [11 Feb 2026]

BNM, SCM: Updates from the 16th JC3 meeting

BNM and SCM have published a joint statement which provides updates from the 16^th Joint Committee on Climate Change (JC3) meeting. The JC3 reviewed ongoing progress and set strategic priorities for 2026. It also reaffirmed the priority of accelerating climate action in the real economy by mobilising finance for impactful climate and nature-positive projects.

JC3 noted the successful delivery of initiatives in 2025 including those under Malaysia's ASEAN Chairmanship, and will continue to focus its efforts on strengthening the ecosystem for climate and sustainable finance. This includes the development of the Malaysia Taxonomy, which will align to the ASEAN Taxonomy. A Call for Feedback on the Malaysia Taxonomy's design and scope will be issued at the end of February to gather views on adoption and implementation considerations.

Members also discussed the progress of the JC3 Climate Finance Innovation Lab (CFIL). As at January 2026, CFIL has onboarded 30 projects, with total funding needs exceeding RM4 billion. Since its inception, CFIL has rolled out several initiatives, including the Accelerator Programme and the Capital Solutioning Lab. In the period ahead, CFIL will focus on the solutioning aspects including project readiness and viability support, and strengthening public-private-philanthropic partnerships. [6 Feb 2026]

SCM publishes Practice Note on Offering of Broking Services for Digital Assets

SCM has published Practice Note on Offering of Broking Services for Digital Assets. The Practice Note is issued pursuant to the Capital Markets and Service Act 2007, and is applicable to capital market services licence (CMSL) holder for dealing in securities and CMSL holder for dealing in securities restricted to listed securities. SCM has also published Appendix 1 - Declaration on System and Operational Readiness. [30 Jan 2026]

Thailand

SECT advances the Thai derivatives market to accommodate new goods and variables

The SECT has supported the expansion of permissible goods and variables under the Derivatives Act B.E. 2546 (2003) and is preparing corresponding regulatory frameworks to facilitate related business operations. This follows the Cabinet Meeting on 10 February 2026, which approved the proposal submitted by the Ministry of Finance, with the objective of advancing the development of the Thai derivatives market in a manner consistent with international derivatives markets and to ensure that related services operate under an appropriate supervisory framework.

Moreover, the SECT will coordinate with the TFEX to determine the detail of product's contract specifications, particularly for derivatives product referencing digital asset, to ensure alignment with their risk characteristics and practical market usage. [10 Feb 2026]

SECT revises regulations governing securities and derivatives business operators and business

The SECT has revised the regulations governing securities and derivatives business operators and business. The revisions require business operators to establish oversight mechanisms for their services covering: products and services; product and service pricing and value for money; customer understanding; and customer care. The board of directors of each business operator is also required to be accountable for overseeing business operations.

In addition, the SECT has amended the regulations for reporting business changes, requiring the business operators to notify the SEC prior to implementation in order to enhance clarity and supervisory efficiency. [3 Feb 2026]

SECT: Latest Investor Alert and a new channel for reporting investment scams

The SECT has announced a new feature, Latest Investor Alert, for the SEC Check First application. This enhancement enables users to view the most recently updated names of individuals or entities of concern upon launching the application. In addition to the alert, new features including a newly added channel for reporting investment scams, along with a Chatbot function to assist users with general inquiries was added in the application. [3 Feb 2026]

SECT requires business operators to provide clients with investment portfolio status reports to facilitate long-term financial planning

The SECT has issued rules requiring business operators to prepare investment portfolio status reports and either disclose or deliver them to clients. This aims to ensure that clients have comprehensive and timely information on their investment positions, enabling them to track performance continuously and make informed decisions for long-term financial planning.

The rules will take effect from 16 July 2026. [2 Feb 2026]

SECT consults on the proposed principles for reviewing the definition of major shareholders of derivatives business operators

The SECT has announced it is consulting on the proposed principles for reviewing the definition of major shareholders of derivatives business operators. The review aims to enhance regulatory oversight to effectively cover individuals who exercise ultimate control, in line with the supervisory approach for securities and digital asset businesses.

Feedback is requested by 13 February 2026. [30 Jan 2026]

India

SEBI: Appointment of independent reviewer/certifier for green debt security

SEBI has issued a circular on revised norms for the appointment of an independent third party reviewer or certifier for green debt security. Accordingly, issuers of green debt securities must appoint an independent third party reviewer or certifier to ascertain that the issuance of green debt securities is in accordance with the definition specified under Regulation 2(1)(q) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. [27 Feb 2026]

SEBI cautions about fake STT notices

SEBI has cautioned the public regarding fake Securities Transaction Tax (STT) notices. It has come to the notice of SEBI that certain fraudsters have circulated notices requiring compliance with STT under the Finance Act, 2004. SEBI confirmed that it does not issue notices to remit STT amounts nor does it coordinate with RBI on the same. [26 Feb 2026]

SEBI cautions investors on scams through account handling services

SEBI has cautioned investors on scams through account handling services. Account handlers exploit investors by showcasing trades done by them for other investors in which they claim to have generated substantial profits.

These fraudsters require investors to share their trading account credentials with them and key in trades by operating these accounts. The profits/losses thus incurred are directly credited/debited to/from the investor's account. The account holder is expected to share a certain percentage of any profit earned. [26 Feb 2026]

SEBI: Categorisation and rationalisation of mutual fund schemes

SEBI has issued a circular on categorisation and rationalisation of mutual fund schemes. To accommodate the continuously evolving landscape of mutual fund investments and the emergence of opportunities across various asset classes, Clause 2.6 of Chapter 2 of the Master Circular for Mutual Funds has been superseded.

This circular shall come into force with immediate effect. [26 Feb 2026]

IFSCA consults on proposed regulations on setting up and operating ETPs in IFSCs

IFSCA has launched a consultation on proposed regulations regarding the setting up and operating Electronic Trading Platforms (ETPs) in the IFSCs.

IFSCA consults on draft IFSCA (IFSC Financial Advisers) Regulations, 2026

IFSCA has launched a consultation on the draft IFSCA (IFSC Financial Advisers) Regulations, 2026. The draft Regulations are aimed at providing a regulatory environment for financial institutions in the IFSC with a view to put in place a structured and institution anchored regulatory framework for engagement of IFSC financial advisers by such institutions for the purpose of rendering or soliciting any of the financial services under the IFSCA Act, 2019.

Responses are requested by 16 March 2026. [24 Feb 2026]

RBI: Circular on unique transaction identifier for OTC derivative transactions

The RBI has issued a circular which implements unique transaction identifier (UTI) for all transactions in over-the-counter (OTC) markets for Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives in India. The circular will take effect from 1 April 2026. [18 Feb 2026]

RBI seeks feedback on draft directions for foreign exchange transactions by authorised persons

The RBI has published for feedback draft directions on foreign exchange dealings of authorised persons. The amendments are intended to provide greater flexibility to authorised persons to deal in products and undertake foreign exchange transactions for hedging their exposures, balance sheet management and market-making as well as to ease reporting obligations. Responses are requested by 10 March 2026. [17 Feb 2026]

RBI invites views on draft reporting instructions for AD Cat-I banks

The RBI has published draft directions on reporting instructions for Authorised Dealer Category – I (AD Cat-I) banks. Following a review, the RBI has decided that an AD Cat-I bank must report all over-the-counter foreign exchange derivative contracts involving the Indian Rupee undertaken globally by its related parties to the trade repository of the Clearing Corporation of India Ltd. Comments on the draft directions are requested by 9 March 2026. [16 Feb 2026]

RBI consults on amendments to instructions on lending to REITs and InvITs

The RBI has published for feedback a set of draft amendment directions in respect of lending to real estate investment trusts (REITs) and infrastructure investment trusts (InvITs):

• Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026
• Reserve Bank of India (Commercial Banks – Concentration Risk Management) Second Amendment Directions, 2026
• Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions, 2026
• Reserve Bank of India (Small Finance Banks – Credit Facilities) Second Amendment Directions, 2026
• Reserve Bank of India (All India Financial Institutions – Credit Facilities) Amendment Directions, 2026

The RBI proposes to permit commercial banks to extend finance to REITs, subject to appropriate prudential safeguards including regulatory ceiling for exposure to REITs. The existing guidelines on lending to InvITs are also proposed to be harmonised for parity with prudential safeguards proposed for lending to REITs. Feedback is requested by 6 March 2026. [13 Feb 2026]

SEBI consults on relaxations in reporting requirements for brokers

SEBI has published a consultation regarding proposed relaxations to the reporting requirements for stock brokers. SEBI seeks to relax the reporting requirement of demat account for brokers and to align the reporting framework of brokers which are primary dealers with the exemptions provided to brokers operating as banks. Responses are requested by 6 March 2026. [13 Feb 2026]

SEBI consults on proposals concerning base price and price bands for ETFs

SEBI has published a consultation on proposed revisions to the base price and price bands for exchange traded funds (ETFs). Feedback is requested by 6 March 2026. [13 Feb 2026]

RBI: Comprehensive instructions on advertising, marketing and sales of financial products and services

The RBI has issued draft Amendment Directions in relation to comprehensive instructions on advertising, marketing and sales of financial products and services (including third-party products and services) to all banks and non-banking financial companies.

Responses are requested by 4 March 2026. [11 Feb 2026]

RBI withdraws circular on Strengthening of Grievance Redress Mechanism in Banks

The RBI has published withdrawn the circular – Strengthening of Grievance Redress Mechanism in Banks. The circular is withdrawn as the RBI wants to rationalise instructions and avoid duplication. The circular is withdrawn with immediate effect. [11 Feb 2026]

SEBI: Review of minimum value of investment by individual investors in SIF under SEBI AIF Regulations and review of requirements related to registration period of NPOs and minimum subscription under SEBI ICDR Regulations

SEBI has published a consultation: Review of minimum value of investment by individual investors in Social Impact Fund (SIF) under SEBI Alternate Investment Funds Regulations, 2012 (AIF Regulations) and review of requirements related to registration period of Not for Profit Organizations (NPOs) and minimum subscription under SEBI ICDR Regulations, 2018.

The date for comments is to be advised. [9 Feb 2026]

SEBI updates Master Circular for research analysts, investment advisers and RTAs

SEBI has updated Master Circulars for research analysts, investment advisers and Registrars to an Issue and Share Transfer Agents (RTAs). [9 Feb 2026]

RBI issues draft revised Master Direction – RBI (Credit Derivatives) Directions, 2022

The RBI has released the draft revised Master Direction – RBI (Credit Derivatives) Directions, 2022. The draft includes consolidated provisions for all credit derivatives including existing directions for credit default swaps.

Comments on the draft are requested by 27 February 2026. [6 Feb 2026]

RBI: VRR – Imparting predictability and increasing ease of doing business

The RBI has published a circular to make the following changes to the regulatory framework governing investments under the Voluntary Retention Route (VRR). The changes include:

• The investment limits under the VRR shall be subsumed under the investment limit for Foreign Portfolio Investor (FPI) investments under the General Route. Accordingly, all investments through VRR in Central Government securities (including Treasury Bills), State Government Securities and corporate debt securities shall be reckoned under the investment limit for the respective securities under the General Route.
• FPIs that have availed retention periods longer than the minimum retention period stipulated in the Directions shall have the option of liquidating their portfolio, fully or partly, and exiting the VRR after the end of the minimum retention period.

These Directions are with effect from 1 April 2026. All existing investments under VRR on 1 April 2026, shall be transferred to the respective investment limits under the General Route. [6 Feb 2026]

SEBI: Reporting of value of units of AIFs to Depositories

SEBI has issued a circular: Reporting of value of units of (Alternative Investment Funds) AIFs to Depositories. The circular seeks to leverage the depository infrastructure for enhancing transparency and operational efficiency, and to facilitate system readiness of AIFs.

The circular has immediate effect. [6 Feb 2026]

IFSCA: Directions for obtaining ISINs from a recognised depository in IFSC

The IFSCA has issued a circular - Directions for obtaining International Securities Identification Numbers (ISINs) from a recognised depository in IFSC.  The circular directs that:

• All Units in the IFSC intending to dematerialise securities or other permitted financial products shall obtain ISINs from a depository recognised by the IFSCA.
• The Units in IFSC which have already obtained ISINs from the domestic depositories in India for securities or other permitted financial products, shall obtain new ISINs from a depository recognised by the IFSCA, by 31 August 2026.
• For removal of doubt, it is hereby clarified that an issuer may continue to avail the services of International Central Securities Depositories for issuance and listing of debt securities and other financial products, as permitted under the IFSCA (Listing) Regulations, 2024.

The circular also states the responsibilities of recognised depository in the IFSC. [6 Feb 2026]

SEBI consults on extending facility of standing instructions for SWP/STP for mutual fund units held in demat form

SEBI has published a consultation paper on extending facility of standing instructions for systemic withdrawal plan (SWP) / systemic transfer plan (STP) for mutual fund units held in demat form. The facility of standing instructions for SWP/STP is presently not available if the mutual fund units are held in demat form.

Responses are requested by 26 February 2026. [5 Feb 2026]

SEBI consults on measures towards ease of doing business for REITs and InvITs

SEBI has published a CP on various ease of doing business measures related to real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). The matters consulted in the CP are:

• continuing the investment in special purpose vehicle post end of concession period (for InvITs);
• expanding the scope of investment in liquid mutual fund schemes by REITs and InvITs (for both REITs and InvITs);
• alignment of investment conditions for Private InvIT with Public InvIT in relation to investment in greenfield projects (for InvITs); and
• expanding the scope of permitted use of fresh borrowings for InvITs where net borrowings exceeds 49% of the value of assets (for InvITs).

Responses are requested by 26 February 2026. [5 Feb 2026]

SEBI consults on streamlining the processes pertaining to winding up of AIF schemes and surrender of AIF registrations

SEBI has published a CP on streamlining the processes pertaining to winding up of alternate investment fund (AIF) schemes and surrender of AIF registrations.

Responses are requested by 26 February 2026. [5 Feb 2026]

SEBI publishes circular on creation/invocation of pledge of securities through depository system

SEBI has published a circular inserting paragraphs to the SEBI Master Circular for Depositories dated 3 December 2024 to ensure compliance with the Indian Contract Act, 1872 in the framework for pledge of securities through depositories.

The provisions of this circular shall be implemented on or before 6 April 2026. [5 Feb 2026]

SEBI consults on proposed amendments to 'Fit and Proper Person' Criteria

SEBI has published a CP on proposed amendments to Schedule II of the SEBI (Intermediaries) Regulations, 2008 – ‘Fit and Proper Person' Criteria. The amendments are intended to appropriately balance the ease of compliance and the regulatory objective of ensuring that only participants that demonstrate integrity, honesty, ethical behaviour, reputation, fairness and character operate in the securities market.

Responses are requested by 25 February 2026. [4 Feb 2026]

SEBI revises OTR framework

SEBI has published a circular revising the order-to-trade ratio (OTR) framework. The changes, among others, include:

• the algorithmic orders placed by designated market makers for market activity shall not be considered towards computation of OTR; and
• modifications to Chapter 2 of the Master Circular for Stock Exchanges and Clearing Corporations dated 30 December 2024.

The provisions of this circular shall come into effect from 6 April 2026. [4 Feb 2026]

IFSCA: IFSCA (Fund Management) (Amendment) Regulations, 2026

The IFSCA has issued a circular that mandates all finance companies (FC) / finance units (FU) providing services to clients other than their group entities, shall maintain a dedicated website or webpage. This should display the following information:

• brief overview of Gujarat International Finance Tec-City (GIFT) IFSC ecosystem;
• certificate of registration clearly reflecting the registration number and permitted activities;
• a list of products and services offered, with detailed description of each such offering;
• grievance redressal procedure and contact details of the grievance redressal officer; and
• name, designation and contact details of key managerial personnel in IFSC (such as Head of FC/FU, CEO, CFO, compliance officer, principal officer, as applicable).

The circular shall come into force from 1 April 2026. [3 Feb 2026]

Philippines

SECP hosts ASEAN Taxonomy Board meeting

The SECP has published a press release on the first in-person meeting this year of the Association of Southeast Asian Nations (ASEAN) Taxonomy Board. The meeting focused on the progress of key initiatives supporting the ASEAN Taxonomy, including:

• accelerating the implementation and adoption of its Version 4;
• developing the mitigation co-benefit and Adaptation for Resilience Guide; and
• deepening the region's sustainable finance ecosystem through stronger stakeholder engagement and capacity-building initiatives.

The SECP aims to fulfil the Priority Economic Deliverable on Sustainable and Resilient Capital Markets through key outputs. [24 Feb 2026]

SECP publishes responses to FAQs on the Beneficial Ownership Disclosure Rules of 2026

The SECP has published responses to frequency asked questions (FAQs) on the Beneficial Ownership Disclosure Rules of 2026, which are intended to serve as guidance in complying with the requirements of the Commission on Beneficial Ownership Disclosure Rules of 2026. [30 Jan 2026]

Vietnam

SBV stipulates the internal controls systems of commercial banks and foreign bank branches

The SBV has issued Circular No. 83/2025/TT-NHNN, which replaces Circular No. 13/2018/TT-NHNN. Circular No. 83/2025/TT-NHNN:

• inherits appropriate provisions in Circular No. 13/2018/TT-NHNN;
• provides guidance for the internal control systems; and
• giving due consideration to the principles of the Basel Committee and the internal best practices from several countries to develop the regulations on the internal control systems in line with the characteristics of the banks in Vietnam.

Circular No. 83/2025/TT-NHNN takes effect from 1 July 2026, except for certain new provisions as stipulated specifically in the Circular. [12 Feb 2026]

Taiwan

FSC to relax eligibility requirements for securities firms applying to conduct high-asset customer business and expand eligible buyers of offshore structured products, and to issue an advance notice of the draft regulatory amendments

The FSC has announced that it is preparing amendments to the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities and the Directions for the Conduct of Wealth Management Business by Securities Firms, among other provisions, and will shortly initiate the public notice procedure with the aim of enhancing financial institutions' service capabilities through regulatory easing.

This round of amendments draws on the amendments announced in March 2025 to the Regulations Governing Banks Conducting Financial Products and Services for High-Asset Customers. Key proposed amendments include:

• easing the eligibility requirements for securities firms applying to conduct wealth management business for high-asset customers; and
• broadening the eligible purchasers of offshore structured products issued by securities firms' offshore subsidiaries.

The FSC stated that, although the net worth restriction under the financial eligibility requirements for securities firms has been removed in this amendment, in order to implement tiered management of business lines, the FSC will continue to take financial soundness, including the firm's net worth, into consideration when reviewing securities firms' applications to conduct high-asset customer business. The FSC will also, in light of business development, gradually relax other additional business items that may be permitted.

Responses are requested within 14 days starting from the day after the notice is published in the Gazette. [10 Feb 2026]

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