We are delighted to announce that our Partner Mr. Eric Lui has been appointed by the Chief Executive as a member of the Licensing Appeals Board (“LIAB”) in January 2018 for a further term of two years. “It is my honor to be member of the Licensing Appeals Board. I will keep my promises and do my best to perform the official duties.” Mr. Lui.

The Licensing Appeals Board (“LIAB”) considers appeals against decisions made by the relevant licensing authorities (the Food and Environmental Hygiene Department, the Leisure and Cultural Services Department and the Department of Health) in relation to licensing matters under the Public Health and Municipal Services Ordinance.

Please contact Mr. Eric Lui for any enquiries for further information.

We are delighted to announce that our Partner Mr. Eric Lui was awarded the International Advisory Experts Award 2018 for Corporate Finance Lawyer of the Year in Hong Kong.

International Advisory Experts (IAE) is a global alliance of well-established and experienced legal, financial and consulting firms from over 140 jurisdictions that are committed to providing clients with specialist solutions for their international business requirements. The International Advisory Experts annual awards pay tribute to firms and individuals who have been successful over the past year and have received exceptional praise from their peers.

Please contact Mr. Eric Lui for any enquiries for further information.

Stevenson, Wong & Co. has again been recognized for its success in the legal industry by being ranked fifth among all Hong Kong domestic firms in the Top 50 research of Asian Legal Business. Up to date, we have more than 50 lawyers serving our clients. Since 1978, we have been delivering effective legal solutions to our clients and we maintain and advance our status in the legal field by looking ahead for different opportunities and continuously enhancing our quality of services to ensure our clients’ needs are fulfilled. Our business has been evolving through expansion, new partnerships and development of our business networks and our aim is to continue to excel and meet new challenges in the coming years.

AllBright Law Offices was ranked fourth among all Asian law firms. AllBright has always been recognized as one of the top law firms in China and our strategic association with AllBright has increased our flexibility to meet the changing needs of our clients and expanded our geographical presence in China.

About ALB
Asian Legal Business (ALB) is owned by Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals. It provides authoritative and unbiased insights to legal professionals throughout Asia-Pacific and the Middle East regions.

Please contact our Mr. Eric Lui for any enquiries or further information.

We are delighted to announce that our Partner and Head of Banking and Finance Department Mr. Eric Lui has been reappointed by Secretary for Security Mr. John K. C. LEE as an observer of The Independent Police Complaints Council (“IPCC”) in November for a further term of two years. “It is my honor to be an Observer. I will keep my promises and do my best to perform the official duties.” Mr. Lui said.

Under the Observers Scheme, Observers who are appointed by the Secretary for Security may attend interviews and observe the collection of evidence in connection with CAPO’s investigation of Reportable Complaints. The observations can be carried out on a pre-arranged or surprise basis. The role of an IPCC Observer is primarily to observe and report. Through observations, observers will advise IPCC whether or not the interview or collection of evidence was conducted in a fair and impartial manner.

Please contact Mr. Eric Lui for any enquiries for further information.

Introduction
Financial technology, better known as Fintech, is making headlines around the world, especially with technologically conscious Chinese customers and businesses. Recently, regulators in Hong Kong have announced sandbox and other related initiatives aimed at Fintech firms. In general, the sandbox initiatives involve offering a more controlled regulatory regime for participating firms on the condition of having more clarity on the timing, scope and volume of services it can offer, making appropriate safeguards for customers, and accepting more supervision from the relevant regulators.

HKMA – Fintech Supervisory Sandbox
The Hong Kong Monetary Authority (“HKMA”) has already launched its own Fintech Supervisory Sandbox (“FSS”) initiative in September 2016, which allows banks and their partner Fintech firms to conduct pilot trials on new financial services.

Having gained experience operating the FSS, the HKMA intends to enhance FSS, with the following new features under consideration:

• Fintech Supervisory Chatroom – HKMA can now provide feedback to banks and Fintech firms at an early stage of product development, to facilitate the rollout of new products and services.
• Direct Access for Fintech Firms – With the chatroom in place, Fintech firms may now access FSS directly without having to go through a bank.

SFC Regulatory Sandbox
The Securities and Future Commission (“SFC”) launched the SFC Regulatory Sandbox in September 2017 to provide a confined regulatory environment for Qualified Firms to operate regulated activities under the Securities and Futures Ordinance (Cap. 571) (“SFO”) before Fintech is used on a fuller scale.

The establishment or activities of these Qualified Firms should increase the range and quality of products and services for investors and benefit the Hong Kong financial services industry. To be a Qualified Firm, the firm shall:

• be fit and proper;
• utilise innovative technologies; and
• have a genuine and serious commitment to carry on regulated activities through the use of Fintech.

Under the SFO, no person shall carry on a business in a regulated activity unless the person is licensed by the SFC to conduct such regulated activity. Accordingly, a Qualified Firm should also be licensed (in the case of a start-up, it will need to apply for and obtain the appropriate licence) and comply with the applicable finanicial resources and other requirements).

At the same time, the SFC also released a circular to clarify the “relevant industry experience” requirement for responsible officers (“ROs”), who are appointed to supervise the business of a regulated activity in a licensed corporation. The SFC may recognise the RO applicant’s technology experience as “relevant industry experience” if (i) the applicant has been a key person in developing, or ensuring the proper and continued functioning of, a technology, platform or system (ie, not merely providing system support); and (ii) the technology, platform or system in which the applicant has expertise is central to the regulated activity of his/her new principal.

IA – Insurtech Sandbox
The Insurance Authority (“IA”) has recognised that the application of technology in the insurance industry (“Insurtech”) has closely followed the development of Fintech. In response, the IA has launched the following initiatives in September 2017:

• Insurtech Sandbox – Authorised insurers uncertain whether their innovative Insurtech applications can meet the relevant supervisory requirements can apply for a trial in the Insurtech Sandbox, where presents an opportunity for such insurer to collect data to demonstrate that such application can broadly meet IA’s supervisory requirements.
• Fast Track for New Insurers – the Fast Track provides a dedicate queue for new applications for insurance business in or from Hong Kong owning and operating solely digital distribution channels (as opposed to agents, brokers or banks).

Conclusions
Regulators in Hong Kong have launched their respective sandbox initiatives relevant to the booming Fintech industry. If a firm’s activities may be subject to the regulation of more than one regulator, a firm only needs to apply for the sandbox it deems more relevant. The relevant regulator will act as the primary point of contact, and will assist in liaising with other regulators.

Moreover, it should be stressed that the sandbox initiatives should not be seen as a means to bypass the current supervisory regime. While the sandbox and other relevant initiatives are meant to encourage the development of Fintech, this aim will be subject to the regulators’ duty to protect consumers and to maintain financial stability.

This newsletter is for information purposes only. Its content does not constitute legal advice, and should not be treated as such. Stevenson, Wong & Co. will not be liable to you in respect of any special, indirect or consequential loss or damage.

Please contact our Eric Lui or Rodney Teoh for any enquiries or further information.

The Ceremony for “The First Batch of National Lawyers in Hong Kong and Macau in Joint Venture Law Firms” to receive practising certificates was successfully held in China (Guangdong) Pilot Free Trade Zone Nansha Area of Guangzhou on 16th October 2017. More than 100 guests being lawyers from Hong Kong, Macau and Guangzhou, and corporate representatives from Nansha Free Trade Zone attended the ceremony. Director-General of the Department of Justice of Guangdong Province Mr. Zeng Xianglu presented practising certificates to a total of 42 lawyers, 33 from Hong Kong and 9 from Macau. Deputy Director of the Department of Justice of Guangdong Province Mr. Liang Zhen, President of Guangdong Lawyers Association Mr. Xiao Sheng Fang, Deputy Director of Justice Bureau of Guangzhou Municipality Mr. Tan Xian Ping and District Chief of Guangzhou Nansha People’s Government Mr. Ceng Jin Ze also attended the ceremony.

SW Partners Mr. Willy Cheng, Mr. Hank Lo and Mr. Eric Lui all received their practising certificates. “It is an honour for us to receive practising certificates and encourages Stevenson, Wong & Co. to promote our joint venture law firm.” The joint venture law firm set up by AllBright Law Offices and Stevenson, Wong & Co. in Qianhai (“ABL&SW”) opened its doors in January 2016. ABL&SW’s office is located in the heart of the Qianhai modern service industry cooperation zone and is one of the first batch of joint venture law firms to operate in Qianhai. ABL&SW are well positioned to give legal advice from both Hong Kong and PRC law.

Please contact Mr. Willy Cheng, Mr. Hank Lo, or Mr. Eric Lui for any enquiries or further information about this event.