Newsfeed

On 7 January 2025, the United States Securities and Exchange Commission (US SEC) published updated Frequently Asked Questions (FAQs) related to Rule 35d-1 under the United States Investment Company Act of 1940, commonly known as the “names rule.” These 2025 FAQs reflect changes stemming from the 2023 amendments to the rule, which aim to address investment company names that could mislead investors about a fund’s investments and risks. As part of the update, the US SEC has withdrawn certain outdated FAQs from the 2001 guidance, marking a significant step in modernising regulatory interpretations for the financial industry. The “names rule,” officially Rule 35d-1 under the United States Investment Company Act of 1940, was first adopted by the US SEC in 2001 to address the potential for misleading investment company names. Fund names can strongly influence investor decisions, often implying a particular investment focus or risk profile. To protect investors, the rule mandated that funds...

On 7 January 2025, the United States Securities and Exchange Commission (US SEC) published the Litigation release. On 12 December 2024, the United States District Court for the Western District of Texas issued a final judgment against Leena Jaitley, a former resident of Austin, Texas, for her role in defrauding investors through two fraudulent websites, Managed Options Trading and Options by Pros. This ruling followed an investigation and litigation conducted by US SEC, which uncovered a scheme that caused financial harm to unsuspecting investors. Leena Jaitley operated her fraudulent websites from 2018, falsely claiming that they employed skilled New York-based traders using a proprietary trading methodology with a successful track record. Instead, Leena Jaitley worked alone from her Austin home, occasionally involving her father, who lacked any professional trading qualifications. The US SEC’s investigation revealed that Leena Jaitley’s actions led to at least 15 investors losing...

On 7 January 2025, Rostin Behnam, Chairman of the United States Commodity Futures Trading Commission (US CFTC), announced his decision to step down from his role, with his final day at the Commission set for 7 February 2025. Chairman Behnam’s tenure at the US CFTC spanned over seven years, during which he played a pivotal role in guiding the agency through a period of significant market evolution and global challenges. Rostin Behnam joined the US CFTC in 2017 as a commissioner and later assumed the role of Chairman, leading the agency during a transformative era for global financial markets. The US CFTC, which oversees the derivatives markets that underpin critical segments of the US economy, has navigated regulatory complexities under his stewardship. Behnam’s tenure coincided with periods of market volatility driven by domestic and international economic events. His leadership focused on addressing regulatory gaps, managing market risks, and fostering innovation through responsible...

On 7 January 2025, during a Parliament sitting, Mr. Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore (MAS), addressed a query on credit card fraud raised by Mr. Desmond Choo, Member of Parliament for Tampines GRC. The question centred on the frequency and scale of credit card fraud in recent years, and whether a framework akin to the Shared Responsibility Framework (SRF) could be introduced to clarify the obligations of banks and cardholders in such cases. Mr. Desmond Choo asked the government to provide statistics on the number of credit card fraud cases reported over the past three years, the corresponding quantum of losses, and whether a framework similar to the SRF could be applied to credit card fraud. The SRF, a framework for electronic banking fraud, clarifies responsibilities in the event of fraud and helps define acts of gross negligence and reasonable reporting timelines. In response, Mr. Gan...

On 7 January 2025, the Hong Kong Monetary Authority (HKMA) issued a public alert regarding phishing instant messages impersonating Bank of China (Hong Kong) Limited. The advisory highlights fraudulent messages reported to the HKMA and discusses the importance of vigilance among the public in avoiding financial scams. The alert accompanies a press release issued by Bank of China (Hong Kong) Limited, accessible via the HKMA's official website. This warning comes in response to reports of fraudulent instant messages that mimic official communication from Bank of China Limited. These messages aim to deceive recipients into providing sensitive personal and financial information, such as login credentials and One-Time Passwords (OTPs). The HKMA in this press release states that banks in Hong Kong, including Bank of China Limited, do not use SMS or emails with embedded hyperlinks to direct customers to transactional websites. They also do not request personal or sensitive information via...

On 7 January 2025, the Reserve Bank of India (RBI) announced the winners of the third edition of its global hackathon, HaRBInger 2024 – Innovation for Transformation, during a grand finale in Bengaluru. The event brought together innovators, industry leaders, and policymakers to celebrate groundbreaking technological solutions aimed at tackling financial fraud, FinTech and enhancing accessibility for differently-abled individuals. The RBI launched HaRBInger 2024 on 7 June 2024, focusing on two themes: ‘Zero Financial Frauds’ and ‘Being Divyang Friendly.’ The hackathon encouraged participants to overcome four challenges: developing real-time fraud detection systems, ensuring transaction anonymity in Central Bank Digital Currency (CBDCs) systems, identifying mule bank accounts, and creating solutions for currency identification by visually impaired individuals. A special category was also introduced to honour the best all-women team, to enhance inclusivity and diversity in innovation....

On 2 January 2025, Gary Gensler, Chair of the United States Securities and Exchange Commission (US SEC), gave an official statement announcing a rule change approved by the US SEC. The new regulation, proposed by the Public Company Accounting Oversight Board (PCAOB), mandates the withdrawal of registration for accounting firms that fail to meet basic compliance requirements for two consecutive years. This move aims to maintain the integrity of the PCAOB’s registry and ensure public confidence in the oversight of accounting firms. The new rule targets firms that have not filed annual reports on Form 2 or paid annual fees for two years in succession. Under the new rule, such firms will automatically enter a formal withdrawal process, effectively curbing their ability to present themselves as registered entities with the PCAOB. Gary Gensler discussed the importance of this measure, noting that it ensures inactive or non-operational firms do not mislead stakeholders or diminish the...

On 2 January 2025, the Monetary Authority of Singapore (MAS) announced initiatives to promote the use of Fit notes and digital gifting during the upcoming Lunar New Year festivities. By encouraging the public to opt for these environmentally friendly alternatives over new currency notes, MAS aims to reduce carbon emissions and support sustainable practices. In collaboration with major banks like DBS, OCBC, and UOB, the MAS will facilitate online pre-booking of Fit notes starting from 7 January 2025. These banks are also increasing the number of pop-up and branch ATMs dispensing Fit notes across Singapore, making it more convenient for the public to access them. Customers of these banks who wish to exchange Fit or new notes at branches must make an online pre-booking through the banks' official websites or mobile banking applications. Walk-in exchanges will be available for those aged 60 and above or persons with disabilities. In 2024, nearly two-thirds of hong bao givers surveyed...

The Hong Kong Monetary Authority (HKMA), on 31 December 2024, released its schedule for important financial announcements and updates in January 2025. Renowned for its role in maintaining monetary and banking stability, the HKMA oversees the Hong Kong dollar’s linked exchange rate system, manages the Exchange Fund, promotes the stability of the banking sector, and enhances the efficiency of Hong Kong's financial infrastructure. Its announcements provide key insights into the financial health and policy direction of the region. On 7 January 2025, the HKMA will release the latest figures on Hong Kong’s foreign currency reserve assets, of the region’s economic resilience and ability to support the local currency. The same day, the results of the tender for Exchange Fund Bills (Issue Nos. Q2502 and H2531) will be published, providing updates on short-term debt instruments essential for liquidity management and monetary operations. On 14 January 2025, the Hong Kong Analytical Accounts of...

On 2 January 2025, the Hong Kong's Securities and Futures Commission (HK SFC), announced the conviction against a practicing solicitor for breaching the secrecy provisions under the Hong Kong Securities and Futures Ordinance (HK SFO). The Eastern Magistrates’ Courts found Mr. Tse Yin Fung, principal of the law firm O Tse & Co., guilty of disclosing confidential information in violation of the HK SFO. Tse pleaded guilty to the charge and was fined HK$ 25,000 while being ordered to pay the HK SFC’s investigation costs. On 9 February 2021 when Mr. Tse Yin Fung, acting as the legal representative for an individual under HK SFC investigation, disclosed confidential information to two other individuals. This information concerned a restriction notice issued by the HK SFC to the client, prohibiting their brokerage firm from dealing with certain assets in their trading account. Such notices are a key tool in the HK SFC's investigations into suspected market misconduct, including...