Asia Financial Regulatory Bulletin - August 2026

Last month, Hong Kong moved closer to implementing its long-awaited OTC derivatives licensing regime and continued to sharpen its focus on cybersecurity. In Singapore, the regulators updated their liquidity risk management guidelines and consulted on proposals to facilitate retail fund product innovation.

This monthly bulletin provides a snapshot of selected regulatory developments in Singapore and Hong Kong. To receive a more detailed list of regulatory developments, please sign up to our monthly newsletter below.

Key developments:

Hong Kong SAR:

• Hong Kong’s long-awaited OTC derivatives licensing regime may come into effect soon. The enabling legislation was passed more than a decade ago but remains pending implementation. The SFC convened an industry webinar on the new regime in August, which may indicate that implementation is imminent.

• Cybersecurity remains a key regulatory focus in Hong Kong. The financial services regulators issued a joint report on their cross-sectoral cyber mapping exercise; the HKMA issued a white paper on quantum preparedness; and the SFC issued new guidance on enhanced authentication requirements for internet brokers and VATPs. The SFC also took enforcement action against a brokerage for serious cybersecurity failings that were found to compromise clients’ interests and constitute regulatory misconduct.

Singapore:

• MAS published a consultation paper proposing amendments to the Code on Collective Investment Schemes to enable a wider range of new fund product types to be authorised for retail offer through a more streamlined process, while maintaining appropriate safeguards for retail investors.

• MAS published updated guidelines on liquidity risk management practices for both fund management companies and banks. The fund management guidelines were revised following industry feedback, and the new bank guidelines incorporate lessons from the March 2023 banking events.