CPL Seminar 20191212

Continuous Professional Learning (CPL) Seminar (Dec 12)

大灣區名人大智慧與合規 (12月12日)

The CPL Seminar was kicked off by Mr. David Lui who is named “Godfather of HK Fund Industry” on the topic “The Current Investment Environment of HK”. We are about to finish the year 2019 where we saw prolonged large-scale political unrest and uncertain intense China-US trade tensions. Many people are generally pessimistic about the future and may ask: Is HK still worth investing in both short and long term? Is it the right time to buy? What is the best asset allocation strategy? What are the opportunities in Greater China? Mr. Lui shared with us his 50-year experience of investing in Hong Kong and China and reviewed the dynamic changes in composition of Hang Seng Index, reflecting the increasing importance of economic integration between China and Hong Kong. On the one hand, China investment is flourishing Hong Kong’s capital market, on the other hand, Hong Kong is attracting huge amount of foreign capital into China. Mr. Lui believes that such interdependence will only deepen and broaden in the medium to long term.  

Mr. David Yin Tat LUI (“基金教父”雷賢達先生) was the CEO of the Joint Venture Fund Management company between Schroders and Bank of Communications in Shanghai between 2005 to 2008 and as their Non Executive Vice Chairman afterwards. Mr. Lui joined Schroders Investment Management HK Ltd as Investment Director in 1985, and later on as Executive Director, and Vice Chairman Executive and non-executive Vice Chairman until 2017. Mr. Lui is currently a member of the Investment Committee of University of Hong Kong, the Advisory Committee of Hang Seng Index and the Town Planning Board. 

The second part of the seminar was conducted by Mr. Michael Fagan on the topic “Virtual Assets Trading Platform Licensing”. The Securities and Futures Commission (“SFC”) started on November 6 to invite licensing applications from crypto-exchange platform operators under a new licensing framework with robust regulatory standards. The market generally welcomed the beginning of a new regulatory framework purported to balance the benefits of innovation and the risks that new financial technologies may bring. This new “opt-in” arrangement is seen as an interim measure which will lead to more clarifications and guidelines in the future. After reviewing the background and rationale of the new regulation, Mr. Fagan discussed the framework and terms and conditions for the exchange platform to be fully compliant with the existing regulation. He concluded by commenting on disruption and opportunities for traditional stakeholders; credibility for virtual assets that can make the cut; liquidity fragmentations and regulatory supervision burden and a very significant compliance load (only suitable for serious players). 

Mr. Michael Fagan is the principal of FAGAN lawyers, a boutique technology and regulatory firm based in Hong Kong. Prior to establishing the firm, Michael was General Counsel of the PCCW Group, managing a large team of in-house lawyers, supporting the Group’s transactional, operational and regulatory matters. Prior to joining PCCW, Michael was a technology partner in the Hong Kong office of Baker & McKenzie. And before moving to HK, Michael was a partner with leading Australian law firm Clayton Utz and sat on the Australian Government’s Intellectual Property Advisory Board, providing high-level IP related governmental policy research, input and advice. Michael is admitted to practice as a solicitor in Hong Kong and as a barrister and solicitor in Western Australia and the High Court of Australia. Michael is now the Fintech Compliance Advisor of the Institute.