SFC conducts a thematic review on prime services and related equity derivatives activities

The Securities and Futures Commission (SFC) initiated a thematic review on prime services and related equity derivatives activities in Hong Kong to identify potential conduct issues arising from the practice adopted by prime brokers, to assess the internal controls in place, and to provide guidance on how the risks are managed. Following the growth of the hedge fund industry and the asset management business in Hong Kong, prime services have become a key revenue stream for financial institution