Some of the activities that may need a licensed firm to comply with regulations of other countries may include solicitation of opening of client accounts, signing of account agreements or mandate, marketing or selling of investment products, entering into transactions of investment products, and giving investment advice, the SFC said, adding these examples are not exhaustive.
The SFC also reminded licensed entities to maintain “effective policies, procedures, and controls” to monitor and ensure regulatory compliance when opening accounts, regardless of location.
Furthermore, the SFC said employees or agents conducting business activities on licensed firm’s behalf in other jurisdictions will also be responsible for complying with the code of conduct, failing which may result in breach of norms.
The SFC asked all licensed corporations to make proper enquiries as to how the laws of other jurisdictions applies to their business activities, instructing them to seek advice in case of any doubts.
