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Financial and Monetary Affairs
use of electronic trading by intermediaries. The proposals also aimed to bring the regulation of DMA activities in line with the standards set by the International Organisation of Securities Commissions.
Anti-Money Laundering and Counter Financing of Terrorism
Hong Kong's anti-money laundering (AML) and counter financing of terrorism (CFT) regulatory regime maintains a safe business and investment environment. In April 2012, the Anti-Money Laundering and Counter Terrorist Financing (Financial Institutions) Ordinance introduced customer due diligence and record-keeping requirements to financial institutions, with sanctions for non-compliance and enforcement powers for competent authorities. In July, the United Nations (Anti-Terrorism Measures) (Amendment) Ordinance 2012 expanded the scope of the terrorist financing offences to cover assets of all kinds, broadened the definition of terrorist acts, and expanded the prohibition on assistance for terrorists and terrorist organisations to cover the collection of their property. In view of these upgrades to Hong Kong's regulatory framework, the Financial Action Task Force unanimously agreed to remove Hong Kong from its regular follow-up process in October 2012.
Enhancing Disclosure of Price Sensitive Information by Listed Corporations
The Securities and Futures (Amendment) Ordinance 2012, enacted in May 2012, brings into operation on 1 January 2013 a statutory regime for listed corporations to disclose price sensitive information. Listed corporations will be required to disclose price sensitive information to the public in a timely manner. This will bring Hong Kong's regulatory regime for listed corporations in line with other international financial centres and enhance Hong Kong's position as a premier capital formation platform. In December 2012, the SFC launched a consultation service to help listed corporations understand and comply with the statutory disclosure provisions.
Establishment of an Investor Education Centre and a Financial Dispute Resolution Centre
The Investor Education Centre (IEC), a new SFC subsidiary, was launched in November 2012 to improve financial consumers' financial literacy.
The Financial Dispute Resolution Centre (FDRC) was established in June 2012 to provide an independent, accessible and efficient avenue for resolving monetary disputes between individual clients and financial institutions. Since its establishment, the FDRC has endeavoured to promote mediation as a means to resolve disputes among financial institutions and investors.
Hong Kong as China's Global Financial Centre Financial Links with the Mainland Capital Formation Centre and Global Investment Platform for the Mainland
Hong Kong's fundamental strengths make it an ideal provider of top class services to Mainland enterprises seeking a listing in the city. The growing presence of Mainland issuers in turn has increased the breadth and depth of Hong Kong's securities and futures markets through a greater diversity of constituent stocks in the equity market and a wider range of products. Mainland enterprises also raise capital in Hong Kong through the issuance of bonds, project financing and loan syndication. In addition, they have easy access to investment banking services for mergers and acquisitions, and consultancy on restructuring.
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